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Executive Summary

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NexPoint Waterford DST

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Offering summary

NexPoint Waterford DST is a Delaware Statutory Trust offering sponsored by NexPoint Real Estate Advisors IV, L.P. The offering encompasses Waterford Place, a 240-unit garden-style multifamily apartment community developed in 1997 in Greensboro, North Carolina. Total offering capitalization is $61,060,817, consisting of $31,360,817 in equity and $29,700,000 in debt financing. The property was acquired for $49,500,000 at a 5.28% acquisition cap rate, with total acquisition costs with reserves reaching $58,128,580. Debt financing is secured for a 120-month term at a fixed interest rate of 4.86%, supported by an initial debt service coverage ratio of 2.01x. Initial Year 1 cash flow is projected at 4.51%, with a full-term average projected income of 5.99%.

Capital raise

0.0% of the offering is closed

$31,360,817 still available

Closed$0 Reservations$0 Available$31,360,817
$0 of $31,360,817 placed
Total offering equity

$31,360,817

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$31,360,817

Open for subscription

The sponsor is raising $31,360,817 in equity for the NexPoint Waterford DST offering. Syndication costs include a $470,412 dealer fee, $392,010 in broker-dealer due diligence allowance, and $392,010 in broker-dealer marketing allowance. Specific selling commission amounts were not disclosed in the offering excerpts.

Offering terms

Sector

MULTIFAMILY

Investment Category

DST

Projected First Year Cashflow

4.51%

Avg. 5.99% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$61,060,817

$254,420 per unit

Offering Debt

$29,700,000

4.86% · 120 Months

LTV

48.6%

On acquisition price

Units / Tenants

240

101 Shore Lake Drive, Greensboro, North Carolina 27455

Property Age

The Waterford Place multifamily apartment property was developed in 1997.

The offering covers a 240-unit multifamily property in Greensboro, North Carolina acquired for $49,500,000. Capitalization includes $31,360,817 in equity and $29,700,000 in fixed-rate debt, resulting in a 48.6% LTV. Year 1 projected distribution is 4.51%, supported by an initial DSCR of 2.01x.

Strengths & considerations

Key strengths

  • Debt Coverage

    2.01x DSCR

    The asset generates operating income sufficient to provide a 2.01x coverage ratio over debt service requirements.

  • Moderate Leverage

    48.6% LTV

    Both acquisition and offering loan-to-value ratios are moderate at 48.6% on a 10-year fixed rate loan.

  • Sponsor Platform Scale

    $15,970,000,000 AUM

    The sponsor platform manages nearly $16 billion in assets across its real estate organization.

Key considerations

  • Property Vintage

    1997 Build

    Waterford Place was constructed in 1997, potentially requiring ongoing physical plant maintenance.

  • Appraisal to Offering Ratio

    83.67%

    The standalone appraised value represents 83.67% of total offering price due to syndication load and reserves.

  • Upfront Load

    9.35%

    Front-end fees equal 9.35% of the property purchase price, totaling $2,932,236.

The property secures fixed-rate financing of 4.86% over a 120-month term with a strong DSCR of 2.01x. Leverage remains moderate with both acquisition and offering LTV at 48.6%. Additionally, the sponsor platform oversees $15,970,000,000 in total assets under management.

Sources, uses & fee assessment

Capital Sources

$61.06MTotal offering

  • Offering Equity

    51.4% of offering

    $31.36M

  • Offering Debt

    48.6% LTV on acq.

    $29.70M

Where the Capital Goes

$61.06MDeployed

  • Acquisition Cost

    86.4% of offering

    $52.78M

  • Offering Expenses

    4.8% of offering

    $2.93M

  • Reserves

    8.8% of offering

    $5.35M

Total Offering

$61.06M

Equity $31.36M + debt $29.70M

Acquisition Cost

$52.78M

86.4% of offering to the property

Total Fees & Expenses

$2.93M

4.80% of offering

Reserves

$5.35M

8.8% of offering

Total offering proceeds of $61,060,817 are funded via $31,360,817 in offering equity and $29,700,000 in loan proceeds. Primary uses include the $49,500,000 property acquisition price, $4,552,427 in improvement reserves, and $2,932,236 in total front-end fees. Financing expenses and lender-required reserves total $1,370,291 and $797,576, respectively.

Risk read

Tone reflects relative strength, not a rating

Asset Vintage

1997 Construction

The 240-unit property was built in 1997, requiring sustained capital reinvestment to maintain competitiveness.

Valuation & Load

83.67% Appraisal/Offering

Total offering capitalization includes $2,932,236 in front-end fees and $4,552,427 in improvement reserves.

Debt Terms

4.86% Fixed Rate

The $29,700,000 loan features a 120-month fixed term, 48.6% LTV, and a 2.01x DSCR.

Data Transparency

Undisclosed Metrics

Selling commissions, employee headcount, and total portfolio property count are not disclosed.

The property was developed in 1997, which may entail elevated ongoing capital expenditure requirements for aging building components. Front-end fees and expenses total $2,932,236, contributing to an appraisal-to-offering ratio of 83.67%. Additionally, sponsor employee headcount and specific DST track record details are not disclosed.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load on Offering

4.80%

Total fees ÷ offering price

Load on Equity

9.35%

Total fees ÷ offering equity

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

123.4%

Offering price ÷ acquisition price

Price per Unit

$254,420

Offering price ÷ 240 units

Total front-end fees of $2,932,236 represent 9.35% of the $49,500,000 acquisition cost. The appraisal-to-offering ratio is 83.67%, reflecting the inclusion of syndication costs and reserves in the total offering capitalization. Full-term average income is projected at 5.99%, compared to the Year 1 rate of 4.51%.

Sponsor

Sponsor

NexPoint Real Estate Advisors IV, L.P.

NexPoint Real Estate Advisors IV, L.P. is the offering sponsor, affiliated with NexPoint Securities, Inc., which was formed in November 2013. The sponsor organization oversees $15,970,000,000 in real estate assets under management. Staff size, specific DST program track record, and portfolio property counts are not disclosed.

$15.97B AUMMultifamily SectorFormed Nov 2013
Portfolio

No data is provided in the excerpts regarding the total number of properties in the sponsor’s portfolio or properties currently owned or managed.

Properties owned or managed

AUM

$15,970,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

MULTIFAMILY

Stated strategy

View Sponsor Dossier

NexPoint Real Estate Advisors IV, L.P. acts as the sponsor, utilizing NexPoint Securities, Inc. (formed in November 2013) as Managing Broker-Dealer. The broader sponsor organization manages $15,970,000,000 in assets under management. Specific staff size and total portfolio property counts were not disclosed in the offering materials.