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Executive Summary

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NewStar 17 Sweetwater Springs DST

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Offering summary

NewStar 17 Sweetwater Springs DST is a $39,408,522 Delaware Statutory Trust offering sponsored by Newstar Exchange. The trust is secured by a 95-unit newly constructed Class A townhome community located in Gwinnett County within the Atlanta, Georgia market. The property was acquired for $33,065,000, capitalized through $21,808,522 in offering equity and $17,600,000 in fixed-rate debt, representing a 45% loan-to-value ratio. Financing is structured on a 10-year term at a 5.1% fixed interest rate with a debt service coverage ratio of 2.53x. Distribution yields are projected at 4.4% in Year 1 and average 4.75% over the full holding term. Total front-end fees and expenses equal $2,234,533, which reflects a 6% load on the offering price and 10.25% of the acquisition cost.

Capital raise

0.0% of the offering is closed

$21,808,522 still available

Closed$0 Reservations$0 Available$21,808,522
$0 of $21,808,522 placed
Total offering equity

$21,808,522

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$21,808,522

Open for subscription

Newstar Exchange is raising $21,808,522 in equity from accredited investors alongside $17,600,000 in senior debt. Upfront syndication costs include selling commissions of up to 6.0% of gross offering proceeds, a $654,256 dealer fee, and $271,766 in O&O expenses. Total offering expenses and fees amount to $2,234,533.

Offering terms

Sector

Multifamily

Investment Category

DST

Projected First Year Cashflow

4.4%

Avg. 4.75% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$39,408,522

$414,827 per unit

Offering Debt

$17,600,000

5.1% · 10-Year Loan Term

LTV

45%

On acquisition price

Units / Tenants

95

Atlanta, Georgia | Gwinnett County

Property Age

The property consists of newly constructed Class A townhome apartments, indicating that the main improvements are new construction completed shortly before the 2026 offering.

The offering comprises a 95-unit newly constructed townhome community in Gwinnett County (Atlanta, GA) acquired for $33,065,000 at a 4.76% cap rate. Total offering capitalization is $39,408,522, funded by $21,808,522 in equity and $17,600,000 in 10-year fixed debt at 5.1%. Initial Year 1 cash flow is projected at 4.4%, with an average income of 4.75% across the full investment term.

Strengths & considerations

Key strengths

  • Moderate Leverage & Strong Debt Coverage

    45% LTV / 2.53x DSCR

    The debt structure maintains a conservative 45% loan-to-value ratio and a robust 2.53x debt service coverage ratio.

  • Long-Term Fixed Financing

    10-Year Loan Term at 5.1%

    The loan features a fixed 5.1% interest rate for 10 years, mitigating interest rate and debt rollover risk.

  • Newly Constructed Asset Vintage

    95 Class A Townhome Units

    The property consists of newly constructed Class A townhome apartments completed prior to the 2026 offering.

Key considerations

  • Upfront Syndication Load

    10.25% Upfront Fee / Acq. Cost

    Total front-end fees and expenses equal $2,234,533, representing a 6% load on offering price and 10.25% of acquisition cost.

  • Initial Cash Distribution Yield

    4.4% Yr. 1 Distribution

    First-year investor distribution begins at 4.4%, below the 5.1% loan interest rate, before averaging 4.75% over the full term.

  • Sponsor Portfolio Scale

    5 DST Properties / $5,000,000 AUM

    The sponsor's track record comprises 5 DST properties acquired between 2022 and 2026 with $5,000,000 in reported AUM.

The investment features a low leverage structure with a 45% offering LTV and strong coverage indicated by a 2.53x DSCR. Debt is secured under a 10-year fixed-rate term at 5.1%, eliminating near-term interest rate risk. Additionally, the asset consists of new Class A townhome construction, reducing near-term structural capital expenditure needs.

Sources, uses & fee assessment

Capital Sources

$39.41MTotal offering

  • Offering Equity

    55.3% of offering

    $21.81M

  • Offering Debt

    45% LTV on acq.

    $17.60M

Where the Capital Goes

$39.41MDeployed

  • Acquisition Cost

    87.1% of offering

    $34.33M

  • Offering Expenses

    5.7% of offering

    $2.23M

  • Reserves

    0.5% of offering

    $215K

  • Unallocated / other uses

    6.7% of offering

    $2.63M

Total Offering

$39.41M

Equity $21.81M + debt $17.60M

Acquisition Cost

$34.33M

87.1% of offering to the property

Total Fees & Expenses

$2.23M

6.00% of offering

Reserves

$215K

0.5% of offering

Sources include $21,808,522 in DST equity and $17,600,000 in loan proceeds for a total raise of $39,408,522. Uses comprise the $33,065,000 property acquisition price, $2,234,533 in front-end fees and offering expenses, $995,000 in carry costs, and $215,000 in master tenant reserves.

Risk read

Tone reflects relative strength, not a rating

Debt & Leverage

Conservative

45% LTV with fixed 5.1% interest for 10 years and 2.53x DSCR provides significant structural debt protection.

Syndication Fees

Elevated

Total upfront fees of $2,234,533 represent a 6% load on offering proceeds and 10.25% of the purchase price.

Initial Yield

Moderate

Year 1 yield starts at 4.4% before stepping up to a projected 4.75% average over the holding term.

Sponsor Scale

Emerging

Track record includes 5 DST assets acquired since 2022 with $5,000,000 reported assets under management.

Key underwriting considerations include an upfront fee burden of 10.25% of acquisition cost and single-asset concentration in a 95-unit townhome property. The sponsor's track record is relatively recent, comprising 5 DST assets acquired between 2022 and 2026. Furthermore, the starting cash-on-cash yield of 4.4% is lower than the 5.1% debt interest rate.

Calculated underwriting metrics

Syndicated Cap Rate

4.76%

NOI ÷ offering price

Upfront Load on Offering

6.00%

Total fees ÷ offering price

Load on Equity

10.25%

Total fees ÷ offering equity

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

119.2%

Offering price ÷ acquisition price

Price per Unit

$414,827

Offering price ÷ 95 units

The total offering price of $39,408,522 builds upon the $33,065,000 acquisition price with $2,234,533 in upfront fees and expenses, $995,000 in carry costs, and $215,000 in master tenant reserves. Upfront fees represent 10.25% of the purchase price and a 6% load on offering proceeds. Both the acquisition cap rate and syndicated cap rate are reported at 4.76%.

Sponsor

Sponsor

Newstar Exchange

Newstar Exchange is a multifamily DST sponsor with 5 DST properties acquired between 2022 and 2026, holding $5,000,000 in reported assets under management.

Multifamily Focus5 DST Properties2022-2026 Track RecordAtlanta Market
Portfolio

• The sponsor’s DST track record comprises 5 DST properties in its portfolio as of March 31, 2026.

Properties owned or managed

AUM

$5,000,000

Across all programs

DST programs

5

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

Multifamily

Stated strategy

View Sponsor Dossier

Newstar Exchange is a real estate sponsor focused on the multifamily sector with $5,000,000 in reported assets under management. Through March 31, 2026, the sponsor's track record includes five DST properties acquired between 2022 and 2026 with distribution performance tracked for each program.