Executive Summary

PASSCO is raising $44,350,000 in equity for the Passco Preston Ridge DST offering. The equity load is stated at 5%, with syndication costs including a $510,025 placement agent fee, $443,500 BD marketing allowance, and $221,750 BD due diligence allowance. Selling commissions are not stated in the offering documentation.

The offering encompasses a 340-unit multifamily property located at 2001 Startown Rd in Hickory, NC. It is capitalized with $44,350,000 in equity and $39,215,000 in fixed-rate debt at 5.01% interest. Key metrics include a 46.93% LTV, a 2.06x DSCR, and a projected full-term average income of 5.19%.

The asset features moderate leverage with an offering LTV of 46.93% and a robust debt service coverage ratio of 2.06x. The debt is secured at a fixed interest rate of 5.01%, mitigating near-term interest rate volatility. Additionally, the property is recently constructed (2020/2023), limiting immediate structural obsolescence.

Total uses include a $79,352,943 acquisition price, $3,392,775 in total front-end fees and offering expenses, and $1,116,013 in carry costs. Sources are balanced by $44,350,000 in investor equity and $39,215,000 in loan proceeds.

Key underwriting risks include asset-level reliance on the Hickory, NC multifamily market and an acquisition cap rate of 5% relative to the 5.01% debt interest rate. Furthermore, the sponsor's DST track record, headcount, and total active property count are not disclosed in the offering materials.

The offering equity of $44,350,000 and debt of $39,215,000 constitute the $83,565,000 total offering price against an acquisition price of $79,352,943. Front-end fees and offering expenses total $3,392,775, representing a 5% load on equity. Total lumped and improvement reserves established in the structure amount to $4,212,057.