Executive Summary

The trust is raising $40,178,939 in equity from accredited Section 1031 exchange and cash investors. Combined with $35,805,000 in offering debt, total capitalized proceeds amount to $75,983,939.

FREX DB SERIES I DST comprises a 336-unit student housing community located in Morgantown, WV, built in 2012. The transaction features an acquisition price of $65,100,000 against a total offering price of $75,983,939. Financing is secured at a conservative 47.1% LTV with a fixed interest rate of 6.1% maturing on March 11, 2036.

The offering is capitalized with moderate leverage, reflecting an offering LTV of 47.1% on fixed-rate debt maturing in 2036. Fortress Real Estate Exchange LLC brings substantial scale to the transaction, with $53,000,000,000 in assets under management and over 20+ years of real estate experience. Additionally, the trust establishes $2,303,906 in total upfront reserves, including $1,862,684 in lender-required reserves and $300,000 in improvement reserves.

Sources comprise $40,178,939 in equity and $35,805,000 in debt to fund the $75,983,939 total offering capitalization. Primary uses include the $65,100,000 acquisition price, $4,218,789 in total offering expenses/front-end fees, and $2,303,906 in total upfront reserves.

The asset is concentrated entirely in a single student housing property in Morgantown, WV, exposing cash flows to university-specific enrollment trends and student leasing cycles. Selling commissions and property cap rates are not disclosed in the provided materials. Additionally, the offering load includes $4,218,789 in total front-end fees and expenses above the $65,100,000 acquisition price.

Total offering expenses and front-end fees are disclosed at $4,218,789 relative to the $65,100,000 property acquisition cost. The debt structure consists of $35,805,000 in fixed-rate financing at 6.1%, requiring an equity raise of $40,178,939 to complete the $75,983,939 syndication.