Executive Summary

The sponsor is raising $9,230,000 in gross equity proceeds. Front-end expenses and commissions total $923,000, establishing a 10% load on equity. Selling commissions account for up to 6.0% of gross equity proceeds, alongside wholesaling fees, dealer fees, and marketing allowances.

The offering represents a single-asset hospitality investment comprising a 188-unit full-service hotel in Fort Worth, Texas. Capitalization entails an offering price of $41,530,000 with a 77.78% offering LTV. Structured as a zero-coupon investment, initial and full-term projected cash flow yields are 0%.

The underlying asset benefits from a complete renovation and reopening in 2024, minimizing near-term deferred maintenance requirements. Long-term debt financing is locked at a fixed interest rate of 5.81% over a 36-year amortization period. Operational oversight is linked to Ashford Hospitality Trust and Blueprint Hospitality, who maintain a portfolio of 68 hotel properties.

Total capital sources consist of $32,300,000 in debt and $9,230,000 in equity proceeds. Capital uses include the $37,145,000 property acquisition price, $1,114,350 acquisition fee, $750,000 in improvement reserves, $79,949 in lender-required reserves, and upfront offering fees and expenses totaling $923,000.

The offering carries elevated financial leverage with an offering LTV of 77.78% and a tight DSCR of 1.0x. As a zero-coupon DST, the structure generates 0% in ongoing cash distributions, making investor returns entirely dependent on debt paydown and terminal valuation. Additionally, performance remains concentrated in a single hospitality property.

The acquisition price is $37,145,000 against a total offering price of $41,530,000, reflecting $4,385,000 in structural markup and closing expenses. Total debt of $32,300,000 establishes a high leverage profile at 77.78% LTV. The zero-coupon debt service matches property cash flow, yielding a 1.0x DSCR and 0% distributed yield to equity.