Blue Owl 1031 DSTs: Exchange VI Is 82% Sold, VII Just Opened

What the two Form Ds say

A Delaware statutory trust (DST) is a trust that owns real estate and sells fractional interests; under Revenue Ruling 2004-86 a taxpayer "may exchange real property for an interest in the Delaware statutory trust described above without recognition of gain or loss under" Section 1031 "if the other requirements of" that section "are satisfied." Each DST sold privately files a Form D with the SEC, claiming Rule 506(b), and Blue Owl's trusts file one every two weeks while they sell. Blue Owl Real Estate Exchange LLC is named as sponsor, Blue Owl Real Estate Exchange DST Manager LLC as manager and signatory trustee, and Blue Owl Real Estate Exchange Depositor LLC as depositor, all at 150 N. Riverside Plaza, Chicago.

Source: Form D XML for each trust on EDGAR. Percentages, averages and counts are our arithmetic; we count firms, not the individual representatives the forms also list.

Two clarifications on the forms matter. The sales-commission field says: "Sales Commissions include estimates of the maximum amount of the Upfront Sales Load that may be paid for the entire offering." And the Item 16 field says: "Item 16 is an estimate of expense reimbursements that may accrue to one or more Related Persons." So 6.0% and 1.5% are ceilings and estimates for the whole offering, not what has been paid to date. On the minimum, the VII form adds that "the Issuer may accept smaller investments in the Sponsor’s sole discretion."

How fast Exchange VI has sold

Blue Owl has filed a Form D/A for Exchange VI roughly every two weeks since June 4, 2026. Each one is a snapshot of cumulative sales, so the differences are the sales in between.

Source: the eleven Form D and D/A filings of Blue Owl Real Estate Exchange VI DST (accessions 0002135424-26-000001 to -000011).

Three readings. The peak was September: $106.5 million between the September 11 and October 9 filings. The latest 13 days brought in $17,979,137, under 40% of the previous step and the smallest since July 30, 2026. And VII's first sale on October 8 falls inside that last window, so some adviser attention may have moved to the new trust; the forms do not say. At the pace of those 13 days (about $1.38 million a day) the $60.3 million left in VI would last roughly 44 more days, until early December 2026; at the average since May 21 it would last about 33. Those are arithmetic, not a forecast: a sponsor can raise the offering amount, as the earlier trusts show by their different sizes, or close it early.

Seven trusts in three years

EDGAR lists seven issuers named Blue Owl Real Estate Exchange I to VII DST. Each has grown or held its size, and the last two are the largest.

Source: latest Form D or D/A of each trust; shares of the offering, totals and the investor sum are our arithmetic.

The sold column for I to V is a floor. Blue Owl has not amended those Forms D since February 2025 (I), September 2025 (II), October 2025 (III), March 2026 (IV) or July 2026 (V), and ORENT’s 10-Q for June 30, 2026 says that "100% of the Interests in our first four DST Offerings and approximately 90% and 5% of the Interests in our fifth and sixth DST Offerings, respectively, have been sold to third parties." The last Forms D for I to IV show 86% to 94.5%. Read the Form D of a trust that has stopped filing as the last time anyone updated it, not as the final raise.

Pace is the other pattern. Counting from the first sale, Exchange II, III and V each passed 50% sold in 91 to 92 days; IV took 124 days and VI 127, though VI is $73 million bigger than V (our arithmetic from the filings). To pass 80%, II needed 126 days, III 105, IV 154, V 167 and VI 154.

The number behind the offering amount

The Form D "offering amount" is not what the DST pays for its property. ORENT, the trust that sells the properties to the DSTs, states a "DST Offering" amount in each annual and quarterly report. Subtract the two Form D estimates (sales load and reimbursements) from each Form D offering amount and you get that figure to the thousand, six times out of six:

Source: Form D filings and ORENT filings (accessions 0001944366-26-000020 and 0001944366-26-000066); the middle column is our arithmetic and is rounded to the thousand.

What that means for an investor, reading the forms at face value (our arithmetic): of every $100 of VI or VII interests, up to $92.50 buys the property at ORENT’s price, up to $6.00 is sales load and up to $1.50 reimburses expenses. On $1,000,000 that is as much as $75,000 before the property is yours, and the interest has to be worth $1,081 for each $1,000 of property price for the exchange to get back its cash, before rent and ignoring any DST-level debt. For II, ORENT’s report says the sale was net of a $57,750 thousand mortgage loan, so loans are possible; the V and VI figures reconcile with no loan, but the Form D does not say so.

The load has moved: 8.0% of the offering for Exchange I, 7.9% for II, 7.25% for III and IV, 7.5% for V, VI and VII. Compare with other sponsors in our analysis of DST fees from Form D and note that bases differ; see our page on Kingsbarn’s DST Form Ds for why.

Who is on the other side: ORENT as tenant and buyer

The Form Ds identify only the DST and its sponsor. ORENT’s 10-Q explains the structure. Its "DST Program" began on August 31, 2023 with authority for up to $3,000,000 thousand of interests. DST properties "will be held in one or more DSTs and leased back by wholly owned subsidiaries of NLT OP in accordance with corresponding master lease agreements," and the trust’s operating partnership "will have the right, but not the obligation, to acquire the Interests in the applicable DST from the beneficial owners" for cash or OP units, at fair market value. That option, the 10-Q says, "is exercisable during the one-year option period beginning two years from the final closing of the applicable DST Offering." Holders who take OP units may, after a one-year holding period, ask for redemption "for, at the Company’s sole discretion, common shares of the Company, cash, or a combination of both."

Two consequences for a 1031 buyer. First, the income is a lease payment from the sponsor’s own REIT: "Under the applicable master lease agreements, the Company is responsible for ongoing property management and for making fixed payments to the DSTs regardless of whether the DST Properties’ cash flows are sufficient to cover the payments." The credit risk is ORENT’s; its debt is covered in our ORENT review. Second, the exit is largely ORENT’s call: it can buy, or not, and if it does not, the 10-Q says "the Company expects that control of the property would transfer to the DST Interest holders." The mechanics and tax treatment of the OP-unit route are in our guide to DST-to-REIT 721 exchanges.

ORENT is also using the program as capital. Its 10-Q says it intends to use net proceeds "to make investments in accordance with our investment strategy and policies, reduce our borrowings, repay indebtedness, fund the repurchase of our common shares under our Share Repurchase Plan and for other corporate purposes." The DST financing obligation on its books went from $714,785 thousand at June 30, 2026 to $859,487 thousand at August 31 and $965,513 thousand at September 30, a rise of $250,728 thousand in the quarter (our arithmetic), against a net asset value of $10,061,074 thousand. Gross proceeds of the program through June 30 were $726,562 thousand, of which upfront fees earned at closing were $9,886 thousand. We tracked ORENT’s private share sales in a separate page.

The 1031 clock behind the year-end rush

Section 1031(a)(3) of the Internal Revenue Code treats replacement property as not like-kind unless it is identified "on or before the day which is 45 days after the date on which the taxpayer transfers the property relinquished," and received by the earlier of 180 days or the due date, with extensions, of the return for that year. Treasury Regulation 1.1031(k)-1(b)(2) says the exchange period "ends at midnight on the earlier of the 180th day thereafter or the due date (including extensions)" of the return. For a calendar-year individual whose 2026 return is due April 15, 2027:

Source: 26 U.S.C. 1031(a)(3); 26 CFR 1.1031(k)-1(b)(2); dates and day counts are our arithmetic. Partnerships and S corporations have an earlier return due date; an extension of the return restores the full 180 days. Our fuller table is in the late-2026 1031 timeline.

The year-end pressure is on day 45, not on December 31: a seller who closes on or before November 16, 2026 must name a replacement by December 31, 2026, and a trust that has sold out by then cannot be named. That is the practical meaning of Exchange VI’s $60.3 million remaining: the supply of this one sponsor’s DST interests may run out about when the identification deadlines for November sellers fall. A Form D cannot tell you whether the offering will be enlarged or closed.

What a reader can do with this

• Ask for the private placement memorandum of the trust and read the use of proceeds. The Form D gives only ceilings (6.0% and 1.5%); the memorandum states what is actually paid, to whom, and what part ORENT’s affiliates keep. ORENT’s 10-Q says total upfront fees at closing were $8,162 thousand in the first half of 2026, of which it earned $5,228 thousand, which is not the same figure as the Form D load.
• Ask what price ORENT paid for the properties and what the trust’s independent appraisal is, since the sponsor’s REIT is both seller to the DST and tenant of it.
• Read the master lease and the buyback option: term, rent steps, who pays for capital expenditure, and what happens if the option window passes without ORENT acting.
• Plan a second choice. If you identify only this trust and it closes, you have no replacement. The identification rules allow more than one candidate.
• Check who sells it to you. The VI form names 10 broker-dealer firms across 35 states; confirm the firm and the representative on FINRA BrokerCheck.

FAQ

Sources, read and saved on October 28, 2026: Form D and D/A XML filings of Blue Owl Real Estate Exchange I to VII DST (SEC CIKs 0001993123, 0002060608, 0002068898, 0002089871, 0002107663, 0002135424, 0002157974) and the EDGAR filing lists of each; Blue Owl Real Estate Net Lease Trust (CIK 0001944366) Form 10-K for 2025 (0001944366-26-000020), Form 10-Q for June 30, 2026 (0001944366-26-000066) and Forms 8-K of September 18 and October 20, 2026; 26 U.S.C. 1031; 26 CFR 1.1031(k)-1 (eCFR, October 20, 2026); Revenue Ruling 2004-86. The count of broker-dealer firms and states, shares, sums, averages and day counts are our arithmetic. Form D figures are the issuer’s own reports on the filing date. This is analysis of public documents, not investment, legal or tax advice.