Offering summary
MCG Gainesville FL BTR DST is a single-asset Delaware Statutory Trust offering sponsored by Madison Capital Group. The trust is raising $31,709,210 in equity to acquire a 172-unit Class A+ detached cottage-style build-to-rent housing community located in Gainesville, Florida, built in 2023. The property acquisition price is $51,025,000, with a total acquisition cost including reserves of $56,571,289. Financing consists of a $28,033,000 fixed-rate loan with an interest rate of 5.32% and a term of approximately 10 years, yielding a debt service coverage ratio (DSCR) of 1.74x. The offering projects a Year 1 income distribution of 4.5% and a full-term average income distribution of 4.5%. Total front-end fees and upfront load equal $3,170,921, representing 10% of the gross offering price.
Capital raise
0.0% of the offering is closed
$317,092 still available
$317,092
$0
0.0% of offering$0
Pending subscription$317,092
Open for subscriptionThe offering seeks $31,709,210 in total equity. Upfront fees and expenses total $3,170,921, reflecting a 10% load that covers selling commissions (up to 6.0%), broker-dealer due diligence ($317,092), dealer fees ($317,092), wholesaling fees ($317,092), and O&O expenses ($317,092).
Offering terms
Sector
Build-To-Rent (BTR)
Investment Category
DST
Projected First Year Cashflow
4.5%
Avg. 4.5% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$31,709,210
$184,356 per unit
Offering Debt
—
5.32% · approximately 10 years
LTV
—
On acquisition price
Units / Tenants
172
7000 SW 91 Street, Gainesville, Florida 32608
Property Age
The property is a brand new Class A+ detached cottage-style housing community that was built in 2023.
The offering features a 2023-construction, 172-unit build-to-rent residential community in Gainesville, Florida, acquired for $51,025,000. Debt financing comprises a $28,033,000 fixed-rate loan at 5.32% across a 10-year term with a 1.74x DSCR. Projected investor distribution is 4.5% in Year 1 and averages 4.5% over the full holding period.
Strengths & considerations
Key strengths
Long-Term Fixed Debt Structure
5.32% Interest Rate / 10-Year TermThe $28,033,000 loan is fixed at 5.32% over an approximate 10-year term, eliminating interest rate volatility throughout the projected hold.
Coverage Metrics
1.74x DSCRThe property generates sufficient cash flow to achieve a 1.74x debt service coverage ratio under its master lease structure.
Asset Quality & Vintage
2023 Construction / 172 UnitsThe property is a brand new Class A+ detached cottage-style build-to-rent community, minimizing near-term structural capital expenditure requirements.
Key considerations
Upfront Fee Load
10.0% ($3,170,921)Front-end load reduces net invested capital, requiring significant operational appreciation or debt paydown to recover syndication costs.
Distribution Rate Spread
4.5% Initial Yield vs. 5.32% DebtThe initial 4.5% projected investor yield is lower than the debt coupon of 5.32%, indicating lower initial equity cash yields relative to leverage costs.
Undisclosed Sponsor Metrics
Not DisclosedSpecific DST track record, total portfolio property counts, employee headcount, and acquisition cap rate are omitted from the provided disclosures.
The asset is a newly constructed 2023 Class A+ build-to-rent community secured with long-term, fixed-rate financing at 5.32% for approximately 10 years. Debt service coverage is structured at a healthy 1.74x. Additionally, the transaction includes funded capitalization reserves across lender, improvement, and master tenant allocations.
Sources, uses & fee assessment
Capital Sources
- $317K
Offering Equity
1.0% of offering
- $28.03M
Offering Debt
— LTV on acq.
Where the Capital Goes
- $51.02M
Acquisition Cost
160.9% of offering
- $2.04M
Reserves
6.4% of offering
Total Offering
$31.71M
Equity $317K + debt $28.03M
Acquisition Cost
$51.02M
160.9% of offering to the property
Total Fees & Expenses
—
10.00% of offering
Reserves
$2.04M
6.4% of offering
Sources comprise $31,709,210 in equity proceeds and $28,033,000 in loan proceeds. Uses include the $51,025,000 property acquisition, $3,170,921 in front-end load and organizational fees, $1,020,500 acquisition fee, $515,611 in financing expenses, $349,020 in title and recording costs, and multiple reserve allocations totaling over $2,040,000.
Risk read
Tone reflects relative strength, not a rating
Leverage & Refinancing
StableDebt is fixed at 5.32% for approximately 10 years with a 1.74x DSCR on a $28,033,000 loan balance.
Front-End Load
ElevatedTotal upfront syndication fees equal $3,170,921, or 10.0% of the $31,709,210 offering equity.
Cash Flow Yield
ModerateProjected investor income is 4.5% in Year 1 and averages 4.5% over the hold, trailing the 5.32% interest rate.
Sponsor Reporting
Information GapSponsor lists $5,000,000 AUM, but DST track record, portfolio size, and team size are not disclosed.
Key underwriting considerations include a 10% upfront syndication load ($3,170,921), an initial projected yield of 4.5% which sits below the 5.32% borrowing cost, and limited disclosed sponsor historical data regarding portfolio size, headcount, and prior DST programs. Appraised value and acquisition cap rate are not disclosed.
Calculated underwriting metrics
Syndicated Cap Rate
5.15%
NOI ÷ offering price
Upfront Load on Offering
10.00%
Total fees ÷ offering price
Load on Equity
—
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
62.1%
Offering price ÷ acquisition price
Price per Unit
$184,356
Offering price ÷ 172 units
Total capitalization of $56,571,289 encompasses the $51,025,000 purchase price, $3,170,921 in front-end syndication fees (10.0% load), $1,020,500 in acquisition fees, and $2,040,686 in aggregate reserves. The syndicated capitalization rate is calculated at 5.15% relative to the total capital structure.
Sponsor
Sponsor
Madison Capital Group
Madison Capital Group serves as the sponsor, reporting $5,000,000 in assets under management. Specific track record details regarding prior DST offerings, staffing size, and portfolio unit counts are not provided in the offering documents.
—
Properties owned or managed
$5,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Build-To-Rent (BTR)
Stated strategy
The sponsor for the offering is Madison Capital Group, which reports $5,000,000 in assets under management. Historical DST track record, employee headcount, and total property portfolio counts are not disclosed in the offering documents.