Offering summary
LSC Fort Washington MD DST is a Delaware Statutory Trust offering sponsored by Livingston Street Capital, LLC to acquire Chestnut Oaks, a 150-unit multifamily residential community for seniors located at 1800 Palmer Road in Fort Washington, Maryland. Built in 2007, the active adult property is being acquired for a purchase price of $34,250,000. Total capitalization is $42,730,000, funded through $21,530,000 in equity and $21,200,000 in long-term fixed-rate debt maturing on 2/1/2036. The loan carries a fixed interest rate of 5.95% with an initial debt service coverage ratio (DSCR) of 1.15 to 1.00 and an acquisition/offering leverage of 49.6%. The offering targets a Year 1 cash-on-cash distribution of 4.6% and an average income of 5.3% over the full holding term. Total front-end fees and offering expenses are $2,373,875, with upfront reserves funded at $1,460,225, including $775,000 for improvements and $667,600 for lender-required reserves.
Capital raise
0.0% of the offering is closed
$21,530,000 still available
$21,530,000
$0
0.0% of offering$0
Pending subscription$21,530,000
Open for subscriptionThe syndicate is raising $21,530,000 in equity proceeds. Upfront compensation and syndicate costs include selling commissions of up to 6.0% payable to Orchard Securities, LLC, a dealer fee of $215,300, a broker-dealer marketing allowance of $172,240, and a broker-dealer due diligence allowance of $107,650. Organizational and offering expense reimbursements total $371,585.
Offering terms
Sector
Active Adult Community
Investment Category
DST
Projected First Year Cashflow
4.6%
Avg. 5.3% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$21,530,000
$143,533 per unit
Offering Debt
$21,200,000
5.95% · 2/1/2036
LTV
49.6%
On acquisition price
Units / Tenants
150
1800 Palmer Road Fort Washington, Maryland 20744
Property Age
The property, a multifamily residential community for seniors known as Chestnut Oaks, was built in 2007.
The offering seeks to raise $21,530,000 in equity alongside $21,200,000 in fixed-rate debt to acquire a 150-unit senior housing asset in Fort Washington, Maryland for $34,250,000. The structure maintains a moderate loan-to-value ratio of 49.6% at a fixed interest rate of 5.95% through February 2036. Projected investor distributions begin at 4.6% in Year 1 and average 5.3% over the investment period.
Strengths & considerations
Key strengths
Moderate Leverage
49.6% LTVAcquisition and offering leverage is conservative at 49.6%, reducing principal default exposure.
Long-Term Fixed Financing
5.95% through 2036The debt has a fixed interest rate of 5.95% with a loan term extending to 2/1/2036, eliminating intermediate interest rate resets.
Established Sponsor Track Record
25 DST PropertiesSponsor has acquired 25 DST properties, including 19 senior and multifamily assets totaling over 3,000 units.
Key considerations
Low Debt Service Coverage
1.15 to 1.00 DSCRInitial debt service coverage ratio leaves minimal cash flow buffer against unexpected operational declines.
Upfront Load and Expenses
$2,373,875Total upfront fees and offering expenses represent a material percentage of the $21,530,000 equity raise.
Asset Age and Capital Needs
2007 VintageConstructed in 2007, the property requires ongoing capital upkeep, supported by $775,000 in improvement reserves.
The financing is structured with fixed-rate debt at 5.95% with a long-term maturity of 2/1/2036, mitigating variable interest rate risk. Moderate leverage of 49.6% limits debt exposure relative to total asset value. Additionally, the sponsor possesses substantial sector experience, having acquired 19 active adult, senior, or multifamily properties across its portfolio.
Sources, uses & fee assessment
Capital Sources
- $21.53M
Offering Equity
100.0% of offering
- $21.20M
Offering Debt
49.6% LTV on acq.
Where the Capital Goes
- $34.25M
Net to Property
159.1% of offering
- $2.37M
Offering Expenses
11.0% of offering
- $1.44M
Reserves
6.7% of offering
Total Offering
$21.53M
All equity — no mortgage debt
Property Acquisition
$34.25M
159.1% of offering to the property
Total Fees & Expenses
$2.37M
11.03% of offering
Reserves
$1.44M
6.7% of offering
Sources total $42,730,000, derived from $21,530,000 in offering equity and $21,200,000 in debt financing. Uses include the $34,250,000 property acquisition price, $2,373,875 in total offering expenses and front-end fees, $612,773 in financing expenses, and $1,460,225 in total upfront reserves.
Risk read
Tone reflects relative strength, not a rating
Debt Service Coverage
Initial coverage is tightDSCR is underwritten at 1.15 to 1.00, meaning net operating income has narrow margin over the 5.95% fixed loan obligations.
Interest Rate & Maturity
Long-term fixed debtThe $21,200,000 loan carries a fixed 5.95% rate maturing on 2/1/2036, eliminating refinancing and rate reset risk for over a decade.
Front-End Load
Offering and transaction feesTotal front-end fees and expenses equal $2,373,875, including selling commissions of up to 6.0%, an acquisition fee of $770,625, and dealer fees.
Asset Maintenance
2007 constructionBuilt in 2007, the 150-unit community relies on $775,000 in improvement reserves and $667,600 in lender reserves for capital upkeep.
The transaction presents an initial debt service coverage ratio of 1.15 to 1.00, representing a tight margin of safety on debt service payments. The asset was constructed in 2007, necessitating ongoing capital maintenance, which is partially addressed by $775,000 in improvement reserves. Additionally, total upfront fees, commissions, and expenses of $2,373,875 create a load on invested equity.
Calculated underwriting metrics
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load
11.03%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
62.9%
Offering price ÷ acquisition price
Price per Unit
$143,533
Offering price ÷ 150 units
The acquisition price of $34,250,000 is augmented by $2,373,875 in total offering expenses/front-end fees, $612,773 in financing costs, and $1,460,225 in upfront reserves, bringing total assets under management to $42,730,000. Debt financing comprises $21,200,000 (49.6% LTV), requiring $21,530,000 in investor equity. Initial debt service coverage stands at 1.15 to 1.00 against the 5.95% fixed borrowing rate.
Sponsor
Sponsor
Livingston Street Capital, LLC
Livingston Street Capital, LLC has over 75 years of collective real estate experience and an extensive track record in the DST sector. The sponsor has acquired 25 DST properties, with 19 assets comprising more than 3,000 units focused on multifamily, active adult, and independent living communities across 12 states.
• The sponsor has acquired a total of 25 properties in DST programs, including 19 multifamily, active adult, or independent living properties totaling over 3,000 units across 12 states.
Properties owned or managed
$42,730,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Active Adult Community
Stated strategy
Livingston Street Capital, LLC serves as the sponsor, bringing more than 75 years of real estate experience. The firm has acquired 25 properties in DST programs, including 19 multifamily, active adult, or independent living properties totaling over 3,000 units across 12 states. Total assets under management for the sponsor in connection with this profile stand at $42,730,000.