Offering summary
BDP Southlake DST is a Delaware Statutory Trust offering structured to acquire a single-tenant Class A five-story office building located at 3150 Sabre Drive in Southlake, TX. Built in 2001, the property encompasses 265,942 square feet and operates under a master lease structure generating scheduled base rental income. The offering has a total capitalization of $91,092,820, funded through $51,985,339 in equity and $45,900,000 in fixed-rate debt financing. The loan features a fixed interest rate of 7.12%, a 50.4% LTV, and an initial debt service coverage ratio of 1.98x. The projected cash distribution rate begins at 5.13% in Year 1 with an average full-term income rate of 5.53% and a syndicated cap rate of 6.93%. The sponsor, BDP Holdings, LLC, brings $3,000,000,000 in assets under management to the transaction.
Capital raise
0.0% of the offering is closed
$51,985,339 still available
$51,985,339
$0
0.0% of offering$0
Pending subscription$51,985,339
Open for subscriptionThe DST is raising $51,985,339 in equity capital from accredited investors. Included within the $4,878,680 total offering expenses are selling commissions of up to 6.0% and a dealer fee of $1,559,560. Target distributions to investors begin at 5.13% in Year 1 and average 5.53% over the term.
Offering terms
Sector
Office
Investment Category
DST
Projected First Year Cashflow
5.13%
Avg. 5.53% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$91,092,820
$343 per unit
Offering Debt
$45,900,000
7.12%
LTV
50.4%
On acquisition price
Units / Tenants
265,942
3150 Sabre Drive, Southlake, TX 76092
Property Age
The property is a five-story office building that was built in 2001.
The offering encompasses a 265,942-square-foot Class A office building in Southlake, TX acquired for $76,500,000 within a $91,092,820 total offering capitalization. The transaction is financed with $45,900,000 of fixed-rate debt at 7.12% with a 50.4% LTV and a 1.98x DSCR. Projected investor yields start at 5.13% in Year 1 and average 5.53% over the full holding period.
Strengths & considerations
Key strengths
Robust Debt Service Coverage
1.98xInitial debt service coverage ratio provides a significant cash flow cushion on the $45,900,000 loan.
Moderate Leverage Profile
50.4%Offering and acquisition LTV of 50.4% mitigates default risk relative to highly levered syndications.
Funded Reserve Allocation
$5,248,509Substantial capital allocated to master tenant and lender-required reserves at closing.
Key considerations
Single-Tenant Office Exposure
265,942 sq ftThe property is a 2001-built single-tenant office building, concentrating lease renewal and credit risk on one occupant.
Elevated Debt Cost
7.12%The mortgage carries a fixed interest rate of 7.12% with defeasance prepayment restrictions.
Upfront Fee Load
9.44%Front-end offering fees and expenses total $4,878,680, which is 9.44% of the $76,500,000 acquisition cost.
The financing package features a moderate 50.4% LTV and a healthy initial DSCR of 1.98x on fixed-rate debt. The structure is reinforced by $5,248,509 in master tenant and lender-required reserves. In addition, the sponsor possesses over 25 years of leadership experience and $3,000,000,000 in assets under management.
Sources, uses & fee assessment
Capital Sources
- $51.99M
Offering Equity
57.1% of offering
- $45.90M
Offering Debt
50.4% LTV on acq.
Where the Capital Goes
- $86.83M
Acquisition Cost
95.3% of offering
- $4.88M
Offering Expenses
5.4% of offering
- $9.20M
Reserves
10.1% of offering
Total Offering
$91.09M
Equity $51.99M + debt $45.90M
Acquisition Cost
$86.83M
95.3% of offering to the property
Total Fees & Expenses
$4.88M
6.00% of offering
Reserves
$9.20M
10.1% of offering
Capital sources comprise $51,985,339 in offering equity and $45,900,000 in loan proceeds. Primary uses include the $76,500,000 property purchase price, $4,878,680 in total offering and front-end expenses, $1,530,000 in financing expenses, and $5,248,509 in funded reserves. Total acquisition cost including reserves is documented at $87,106,658.
Risk read
Tone reflects relative strength, not a rating
Tenant & Sector Concentration
watchAsset is a single-tenant office building, concentrating all operational revenue on one tenant's lease performance.
Financing & Debt Service
okThe loan has a 50.4% LTV and 1.98x DSCR on a fixed 7.12% rate, providing debt coverage stability.
Upfront Load & Expenses
watchTotal upfront fees and expenses of $4,878,680 represent 9.44% of the acquisition price.
Liquidity & Reserves
okThe trust holds $5,248,509 in lumped/master tenant reserves and $3,149,130 in lender-required reserves.
The asset is a 2001-vintage single-tenant office building, exposing the trust to direct tenant concentration risk. The financing carries a 7.12% interest rate and is subject to prepayment lockout and defeasance restrictions prior to a 3-month open window. Additionally, upfront offering fees and expenses total $4,878,680 (9.44% of acquisition cost).
Calculated underwriting metrics
Syndicated Cap Rate
6.93%
NOI ÷ offering price
Upfront Load on Offering
6.00%
Total fees ÷ offering price
Load on Equity
9.38%
Total fees ÷ offering equity
Premium / Discount
6%
Offering price vs. appraised value
Offering vs. Acquisition
119.1%
Offering price ÷ acquisition price
Price per Unit
$343
Offering price ÷ 265,942 units
Total front-end offering fees and expenses equal $4,878,680, representing 9.44% of the acquisition cost. The difference between the $76,500,000 purchase price and the $91,092,820 offering price reflects acquisition costs, financing fees, and funded reserves. The underwriting yields a syndicated cap rate of 6.93% supporting an average full-term income projection of 5.53%.
Sponsor
Sponsor
BDP Holdings, LLC
BDP Holdings, LLC manages $3,000,000,000 in assets, with leadership possessing over 25 years of commercial real estate experience across 150+ transactions totaling over $6.5 billion. Dedicated employee headcounts and specific counts of other properties in the sponsor's portfolio are not disclosed.
—
Properties owned or managed
$3,000,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Office
Stated strategy
BDP Holdings, LLC manages $3,000,000,000 in assets across commercial and residential sectors. The leadership team has executed over $6.5 billion in value-driven real estate transactions across 150+ properties in more than 30 states. Specific counts for current portfolio property holdings and dedicated sponsor personnel are not disclosed in the offering materials.