Executive Summary

The program is raising $42,780,000 in equity against a total offering price of $75,480,000. Projected returns start at 5% in Year 1 and average 5.14% over the full 14.7-year term. Upfront syndication costs include $3,078,040 in front-end fees and offering expenses.

The offering comprises an 8-property net-leased portfolio capitalized at $75,480,000 across 5 states. It utilizes $32,700,000 in fixed-rate debt representing an offering LTV of 43.32% with a 14.7-year maturity and a DSCR of 1.35 to 1.00. Investors are offered a Year 1 projected distribution rate of 5% and a full-term average rate of 5.14%.

The offering features a low-leverage profile with an offering LTV of 43.32% backed by long-term, 14.7-year fixed-rate financing. Diversification is established across 8 properties, 7 markets, 5 states, and 4 necessity-based commercial industries. Furthermore, the sponsor brings substantial asset class experience, managing $7,500,000,000 in AUM across 76 DST programs and more than 1,400 properties.

Sources total $75,480,000, comprised of $42,780,000 in offering equity and $32,700,000 in loan proceeds. Uses fund property acquisition costs of $67,518,463 (or $72,401,960 inclusive of reserves), $3,078,040 in offering expenses and fees, and $1,187,795 in financing costs.

Portfolio risk factors include tenant concentration among 6 commercial tenants across the 8 properties. Additionally, the offering materials do not disclose the age or year built for the portfolio assets. While the 14.7-year fixed debt term provides rate certainty, the initial debt service coverage ratio is moderate at 1.35 to 1.00.

The capitalization reflects an acquisition cost of $67,518,463 and a total acquisition cost with reserves of $72,401,960 against the $75,480,000 offering price. Front-end expenses include $3,078,040 in total offering costs, $1,187,795 in financing expenses, and a $988,622 acquisition fee. The syndicated cap rate is 5%, matching the initial Year 1 income distribution.