The Delaware Statutory Trust market pulled in $8.41 billion in equity during 2025. That’s a 49% jump from the $5.66 billion raised in 2024, and the pace hasn’t slowed. By mid-March 2026, DST sponsors had already collected $1.89 billion for the new year (https://www.theamericanreporter.com/blue-owl-capital-vaults-to-no-3-in-the-1031-dst-market-in-less-than-three-months/).
A Flood of Institutional Interest
The growth isn’t coming from a single corner. Since 2022, some of the biggest names in alternative asset management have launched DST platforms: Blackstone, Ares, Hines, Brookfield, and most recently Fortress Investment Group. The number of active sponsors grew from 50 at year-end 2025 to 59 by March 2026. Bloomberg’s OWL company profile shows the firm’s scale among alternative managers.
That kind of institutional entry tends to reshape markets. It brings bigger balance sheets, different product structures, and a fight for investor attention that pushes everyone to sharpen their offerings. For individual investors seeking 1031 exchanges, the result is a wider menu of sponsors, structures, and property types to choose from. The old playbook is fading. Multi-family DSTs are no longer the only real option. Sponsors now compete on returns, debt levels, and property quality in ways that didn’t exist five years ago. The total market grew from 50 to 59 active sponsors in just the first quarter of 2026, and that expansion shows no sign of slowing. Blue Owl Capital’s professional network reflects how the firm has expanded its industry relationships.
Blue Owl Capital’s Net Lease Edge
Among the firms gaining ground, Blue Owl Capital stands out for its net lease approach. OREX, the firm’s DST exchange platform, feeds into Blue Owl Real Estate Net Lease Trust (ORENT), which delivered 13.4% gross and 10.9% net returns for 2025 on Class I shares. The FTSE REIT index was held to just 2.3% over the same stretch. Recent business journal coverage of Blue Owl highlights this strategic focus.
OREX V, an industrial portfolio under the Blue Owl umbrella, carries zero debt. It projects a 5.08% first-year return, a number that looks quite different when you consider multi-family DSTs typically carry 38% to 55% loan-to-value ratios while projecting returns below 4.5%. (otic.com)
Investors noticed. That combination of strong returns and no borrowing helped Blue Owl Capital climb from sixth among DST sponsors at year-end 2025 to third by March 15, 2026, capturing 11% of the market with $207 million raised year-to-date. Ares held the top spot at $432 million, with Hines second at $264 million. The race for the top three, though, appears far from settled. With the DST market growing 49% year-over-year and first quarter 2026 already at $1.89 billion by mid-March, there’s plenty of capital flowing into the space. Blue Owl Capital’s differentiated approach to debt and property structure has clearly appealed to investors seeking alternatives to the standard multi-family formula. Blue Owl Capital has issued several press releases detailing its exchange platform growth.
Why the 1031 DST Market Grew 49% Last Year --- and Where Blue Owl Capital Fits
