Executive Summary

The trust is syndicating $41,850,000 in equity to qualified 1031 exchange and cash investors. Total front-end offering expenses and fees of $4,038,525 create a 9.65% load on raised equity. For each 1% interest ($418,500 gross proceeds), selling commissions and related expenses equal $40,385.25, yielding $378,114.75 in net proceeds to the trust.

The offering comprises a 176-unit, 2024-built multifamily townhome asset in Kissimmee, Florida, acquired for $65,200,000 with a total offering capitalization of $75,255,000. The debt package carries a conservative 44.39% LTV and a 5.04% fixed interest rate with 8 years of interest-only payments, producing a 2.1x DSCR. Projected investor returns start at 4.4% in Year 1 and average 4.78% over the full holding period.

Key strengths include the newly completed 2024 Class A construction and a moderate leverage profile of 44.39% LTV. The debt structure provides strong cash flow insulation with 8 years of interest-only payments at a fixed 5.04% rate, yielding a healthy 2.1x DSCR. Furthermore, the sponsor charges no annual asset management fee ($0) and has structured the disposition fee as fully subordinated.

Sources include $41,850,000 in equity and $33,405,000 in debt proceeds, totaling $75,255,000. Uses are dominated by the $65,200,000 purchase price, $4,038,525 in total offering expenses and fees, $1,002,150 in financing expenses, $213,957 in title and recording costs, and $880,000 in improvement reserves.

Investment considerations include a 71 bps cap rate compression from acquisition (5.32%) to syndicated cap rate (4.61%) resulting from upfront syndication costs. In addition, sponsor track record history, total portfolio size, and an appraised value are not disclosed in the offering materials. Refinancing risk is present at Year 10 following the expiration of the 8-year interest-only period.

The transaction shows an acquisition cap rate of 5.32% alongside a syndicated cap rate of 4.61%, illustrating the spread required to absorb syndication costs. Front-end fees and offering expenses total $4,038,525, which translates to an equity load of 9.65%. Capital reserves include $880,000 allocated for property improvements, $82,392 for lender-required accounts, and $2,045,686 in loan proceeds reserves.