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Executive Summary

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Madison Waterstar Orlando DST

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Offering summary

Madison Waterstar Orlando DST is a Delaware Statutory Trust offering sponsored by Madison Capital Group, encompassing a 320-unit Class A multifamily housing community located in Kissimmee, FL. Constructed in 2023, the newly built asset was acquired for an acquisition price of $94,930,000, aligning with its as-is appraised fair market value of $94,930,000. The total offering price and equity raise amount to $106,751,437, structured with an acquisition loan-to-value (LTV) ratio of 40%. Initial Year 1 projected cash distribution is 4.5%, with a forecasted full-term average income distribution of 4.77%. Total upfront offering fees and expenses equal $8,056,358, which represents 7.55% of the gross offering proceeds, alongside $3,200,000 allocated to Master Tenant reserves. The property was acquired at an initial acquisition capitalization rate of 5.3%.

Capital raise

0.0% of the offering is closed

$106,751,437 still available

Closed$0 Reservations$0 Available$106,751,437
$0 of $106,751,437 placed
Total offering equity

$106,751,437

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$106,751,437

Open for subscription

The sponsor is raising $106,751,437 in gross equity proceeds to fully capitalize the trust. Total upfront load, including selling commissions, broker-dealer allowances, and organizational expenses, totals $8,056,358, capped at 7.55% of gross proceeds. Net equity proceeds directly fund property acquisition and reserve escrows.

Offering terms

Sector

Multi-family apartment community

Investment Category

DST

Projected First Year Cashflow

4.5%

Avg. 4.77% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$106,751,437

$333,598 per unit

Offering Debt

—

All-equity offering

LTV

40%

On acquisition price

Units / Tenants

320

Kissimmee, FL 34747

Property Age

The Madison Waterstar multifamily community is a brand-new property that was built in 2023.

The offering features a newly constructed (2023) 320-unit multifamily community situated in Kissimmee, FL. Capitalized at a 40% acquisition LTV, the property supports a Year 1 cash flow yield of 4.5% and an acquisition cap rate of 5.3%. Total capitalized costs include $3,200,000 in Master Tenant reserves and $8,056,358 in upfront fees and offering expenses.

Strengths & considerations

Key strengths

  • Modern Asset Vintage

    2023

    Brand-new 320-unit construction significantly limits near-term capital expenditure requirements.

  • Moderate Leverage Profile

    40%

    Acquisition loan-to-value ratio provides a conservative debt cushion against market volatility.

  • Master Tenant Reserve Buffer

    $3,200,000

    Upfront liquidity funded into reserves protects operations and cash distributions.

Key considerations

  • Upfront Fee Load

    $8,056,358

    Front-end load and offering expenses represent 7.55% of gross equity raised.

  • Initial Cash Flow Yield

    4.5%

    Year 1 distribution starts at 4.5%, requiring operational growth to achieve the 4.77% term average.

  • Appraised Acquisition Basis

    $94,930,000

    The property was acquired at 100% of its as-is appraised fair market value.

The property represents brand-new 2023 multifamily construction, minimizing near-term deferred maintenance risk. The acquisition was executed at the appraised value of $94,930,000 with a moderate 40% LTV leverage profile. Additionally, the structure incorporates substantial upfront liquidity via $3,200,000 in Master Tenant capital reserves.

Sources, uses & fee assessment

Capital Sources

$106.75MTotal offering

  • Offering Equity

    100.0% of offering

    $106.75M

Where the Capital Goes

$106.75MDeployed

  • Acquisition Cost

    87.5% of offering

    $93.44M

  • Offering Expenses

    7.5% of offering

    $8.06M

  • Reserves

    3.0% of offering

    $3.20M

  • Unallocated / other uses

    1.9% of offering

    $2.06M

Total Offering

$106.75M

All equity — no mortgage debt

Acquisition Cost

$93.44M

87.5% of offering to the property

Total Fees & Expenses

$8.06M

7.55% of offering

Reserves

$3.20M

3.0% of offering

Sources comprise $106,751,437 in total offering equity. Uses include the $94,930,000 property acquisition price, $3,200,000 in Master Tenant reserves, $654,080 in title and recording costs, $50,000 in third-party due diligence, $1,031 in financing expenses, and $8,056,358 in total front-end offering fees and expenses.

Risk read

Tone reflects relative strength, not a rating

Leverage & Debt

Moderate debt profile

Acquisition LTV is established at 40%, keeping total trust leverage at a manageable level.

Fee Burden

Front-end load

Total front-end expenses and syndication costs total $8,056,358 or 7.55% of gross offering equity.

Asset Execution

New construction

Built in 2023, the asset eliminates legacy physical defects but requires stabilization management.

Liquidity & Reserves

Substantial escrow

$3,200,000 is placed into Master Tenant reserves to insulate operating cash flow.

Key underwriting considerations include the $8,056,358 front-end fee burden representing 7.55% of the offering size, which dilutes initial invested capital. Operating performance is dependent on lease-up and stabilization dynamics typical of a 2023 vintage asset in the Kissimmee submarket. Leverage risk is governed by a 40% acquisition LTV.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

7.55%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

112.5%

Offering price ÷ acquisition price

Price per Unit

$333,598

Offering price ÷ 320 units

The offering equity of $106,751,437 covers the acquisition price of $94,930,000, capitalized acquisition costs with reserves of $98,695,080, and total front-end fees of $8,056,358. Total upfront fees and offering expenses account for 7.55% of the total gross proceeds. Year 1 projected distribution of 4.5% steps up to an average full-term distribution of 4.77%.

Sponsor

Sponsor

Madison Capital Group

Madison Capital Group is the sponsor for the offering, focusing on multifamily investments. The firm manages the asset under a $60,000 annual asset management fee, with extracted data reflecting $5,000,000 in assets under management.

Multifamily SponsorMadison Capital GroupAsset Management
Portfolio

—

Properties owned or managed

AUM

$5,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

multi-family apartment community

Stated strategy

View Sponsor Dossier

Madison Capital Group serves as the sponsor for this multifamily offering, focusing on apartment communities and asset operations. The sponsor discloses $5,000,000 in assets under management and collects an ongoing annual asset management fee of $60,000 alongside master tenant operational oversight. Historical multi-cycle operational volume across other divisions is not further detailed in the extracted records.