@Brian Bradley, first I suggest that you don't take snippy shots ("are you even familiar with ...") at people asking probing questions and challenging your theories and underlying assumptions on a platform that is built for mutual learning. To answer your question, yes, I am familiar with Delaware Statutory Trusts to answer your question. Second, the suggestion that this was a hypothetical structuring was more for your benefit in that I'm sure you're not offering specific, direct legal advice on this forum. Third, your comment above that "The way you avoid the CA $800 franchise taxis because the DST is an ESTATE PLANNING TOOL, hence not subject to CA State Franchise Tax" appears to be incomplete when your later comment suggests a "separate operating company LLC that is set up to operate / run the business, and collect rents etc."
Now, the "separate operating company LLC that is set up to operate / run the business, and collect rents etc." would still be required to pay the California FTB all of the standard franchise fees and taxes, right?