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Executive Summary

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Moody Village Towers DST

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Offering summary

Moody Village Towers DST is an institutional real estate offering sponsored by Moody National Companies, comprising a Class-A office building with retail space developed in 2019 located at 9651 and 9655 Katy Freeway in Houston, Texas. The total acquisition cost for the property is $210,750,000, with a base purchase price of $184,000,000 reflecting an initial acquisition cap rate of 5.07%. The capital structure is funded through $136,250,000 in offering equity alongside $74,500,000 in fixed-rate debt financing. Leverage is conservative with an acquisition and offering loan-to-value ratio of 37.27%. The debt facility carries a fixed interest rate of 5.09%. Front-end offering expenses and fees total $10,900,000, representing an 8% load on the offering price, alongside substantial improvement reserves of $10,848,055 and master tenant reserves of $500,000.

Capital raise

0.0% of the offering is closed

$136,250,000 still available

Closed$0 Reservations$0 Available$136,250,000
$0 of $136,250,000 placed
Total offering equity

$136,250,000

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$136,250,000

Open for subscription

The syndicate seeks to raise $136,250,000 in offering equity from investors. Selling commissions are capped at 6%, with total broker-dealer allowances, placement fees, and reimbursements capped at 8% ($10,900,000) of total sales. The equity raise represents 64.65% of the total $210,750,000 capitalization.

Offering terms

Sector

Other

Investment Category

DST

Projected First Year Cashflow

—

Avg. — over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$136,250,000

Offering Debt

$74,500,000

5.09%

LTV

37.27%

On acquisition price

Units / Tenants

—

9651 and 9655 Katy Freeway, Houston, Texas 77024

Property Age

Village Towers was developed in 2019, indicating a recently constructed Class-A mixed-use property.

The offering features a 2019-vintage Class-A mixed-use office and retail asset located along the Katy Freeway in Houston, Texas. Capitalization consists of $136,250,000 in equity and $74,500,000 in debt, resulting in a low leverage profile of 37.27% LTV. The financing is secured at a fixed interest rate of 5.09%.

Strengths & considerations

Key strengths

  • Conservative Leverage

    37.27% LTV

    The debt-to-value ratio is maintained at 37.27% based on a $74,500,000 loan against the $184,000,000 purchase price.

  • Fixed Borrowing Cost

    5.09% Fixed

    The debt package carries a fixed interest rate of 5.09%, insulating property cash flows from interest rate volatility.

  • Substantial Reserve Funding

    $10,848,055

    Capitalization includes $10,848,055 in dedicated improvement reserves and $500,000 in master tenant reserves.

Key considerations

  • Upfront Fee Load

    $10,900,000

    Front-end offering expenses and broker-dealer load equal 8% of the equity raise, totaling $10,900,000.

  • Transaction Mark-Up

    $26,750,000

    Total acquisition cost of $210,750,000 exceeds the $184,000,000 property purchase price due to fees, expenses, and reserves.

  • Initial Acquisition Yield

    5.07% Cap Rate

    The asset was acquired at an initial cap rate of 5.07%, which sits close to the 5.09% loan interest rate.

Key structural strengths include a conservative leverage profile of 37.27% LTV, which limits debt service exposure. The loan carries a fixed interest rate of 5.09%, providing interest rate certainty. Additionally, the asset is a modern 2019 build backed by substantial capital improvement reserves totaling $10,848,055.

Sources, uses & fee assessment

Capital Sources

$136.25MTotal offering

  • Offering Equity

    100.0% of offering

    $136.25M

  • Offering Debt

    37.27% LTV on acq.

    $74.50M

Where the Capital Goes

$136.25MDeployed

  • Acquisition Cost

    154.7% of offering

    $210.75M

  • Offering Expenses

    8.0% of offering

    $10.90M

  • Reserves

    8.3% of offering

    $11.35M

Total Offering

$136.25M

All equity — no mortgage debt

Acquisition Cost

$210.75M

154.7% of offering to the property

Total Fees & Expenses

$15.90M

8.00% of offering

Reserves

$11.35M

8.3% of offering

Total uses of $210,750,000 consist of the $184,000,000 acquisition price, $10,900,000 in upfront offering expenses, $3,745,000 in loan and lender expenses, $476,875 in organizational and offering expenses, and $11,348,055 in total reserves ($10,848,055 improvement reserves and $500,000 master tenant reserves). Sources comprise $136,250,000 in equity proceeds and $74,500,000 in loan proceeds.

Risk read

Tone reflects relative strength, not a rating

Leverage & Debt

Conservative

LTV is low at 37.27% on a $74,500,000 loan with a fixed rate of 5.09%.

Fee Structure

High

Total upfront fees and offering expenses are $10,900,000, representing an 8% load.

Negative Spread Risk

Moderate

Acquisition cap rate of 5.07% compares against a 5.09% debt interest rate.

Asset Concentration

Standard Single-Asset

Single 2019-vintage office/retail property in Houston, TX with undisclosed tenant details.

Risks center on the single-asset office and retail focus, exposing investors to office sector operational dynamics. While the 5.07% cap rate provides an initial baseline, upfront fees and transaction expenses total $15,901,945, representing a significant spread between the acquisition price and total cost. Tenancy details, lease terms, and occupancy rates are not disclosed.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

8.00%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

74.0%

Offering price ÷ acquisition price

Price per Unit

—

Offering price ÷ — units

The transaction capitalization totals $210,750,000 against a property purchase price of $184,000,000, reflecting an acquisition cap rate of 5.07%. Upfront offering fees and load total $10,900,000 (8% of equity), while total transaction fees and expenses reach $15,901,945. Substantial reserves of $10,848,055 for improvements and $500,000 for the master tenant are built into the capitalization.

Sponsor

Sponsor

Moody National Companies

Moody National Companies began as Moody National Mortgage Corporation in 1996. The organization has expanded over more than 25 years into a multi-division commercial real estate sponsor.

Founded 1996Full-Service CRECommercial Sponsor
Portfolio

—

Properties owned or managed

AUM

—

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

Other

Stated strategy

View Sponsor Dossier

Moody National Companies serves as the sponsor, having been founded in 1996 initially as Moody National Mortgage Corporation. The firm has operated for over two decades, evolving into a full-service commercial real estate sponsor managing multiple divisions. Detailed historical performance metrics and AUM are not disclosed in the offering fields.