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Executive Summary

Processed

Starboard Bradley DST

Preview Report

Offering summary

Starboard Bradley DST is offering interests in a 144-unit garden-style/low-rise multifamily property located at 355 Bradley Blvd. in Richland, Washington. Completed in 2024, the newly constructed asset was acquired for an acquisition price of $34,700,000 against a total acquisition and offering cost of $41,868,000. Financing comprises a fixed-rate loan of $19,298,000 with an interest rate of 9.11% across an approximate 10-year term, yielding a 2.00x DSCR and an offering LTV of 46.09%. The projected Year 1 income distribution is 4.43%, with an acquisition cap rate stated at 4%. Total front-end offering expenses and fees amount to $2,370,575, alongside structured capital improvement and operational reserve allocations.

Capital raise

0.0% of the offering is closed

$2,550,000 still available

Closed$0 Reservations$0 Available$2,550,000
$0 of $2,550,000 placed
Total offering equity

$2,550,000

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$2,550,000

Open for subscription

The trust is raising equity toward the total offering price of $41,868,000, supporting the equity capitalization above the $19,298,000 debt facility. Front-end syndication and organization fees total $2,370,575, which includes broker-dealer allowances, marketing fees, and wholesaling expenses. Projected Year 1 cash distributions to equity investors are targeted at 4.43%.

Offering terms

Sector

Multifamily

Investment Category

DST

Projected First Year Cashflow

4.43%

Avg. — over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$41,868,000

$290,750 per unit

Offering Debt

$19,298,000

9.11% · approximately 10 years

LTV

55.62%

On acquisition price

Units / Tenants

144

355 Bradley Blvd., Richland, WA 99352

Property Age

The property was completed in 2024.

The offering covers a 2024-vintage 144-unit multifamily community located in Richland, WA, capitalized at an offering price of $41,868,000. Debt financing represents $19,298,000 at a fixed 9.11% interest rate with a 2.00x DSCR. Year 1 projected income is 4.43% based on a 4% acquisition cap rate.

Strengths & considerations

Key strengths

  • Newly Built Vintage

    2024 Completion

    The property was completed in 2024, minimizing near-term deferred maintenance and structural capital demands across its 144 units.

  • Moderate Leverage & Strong DSCR

    46.09% LTV / 2.00x DSCR

    The offering carries an offering LTV of 46.09% alongside a 2.00x debt service coverage ratio on fixed-rate debt.

  • Capital Reserves Funded

    $1,300,000

    The capital stack includes $1,300,000 dedicated to improvement reserves, alongside specific lender and master tenant reserve allocations.

Key considerations

  • High Debt Cost

    9.11% Fixed Rate

    The 10-year debt carries a 9.11% interest rate, exceeding the stated 4% acquisition cap rate.

  • Front-End Load & Fees

    $2,370,575

    Total front-end fees and offering expenses represent $2,370,575 of the $41,868,000 total acquisition cost.

  • Stringent Prepayment Structure

    Yield Maint. / Lockout

    Prepayment carries yield maintenance, a two-year post-securitization lockout with defeasance, and a 1% exit fee.

The property offers new 2024 construction with low initial capital expenditure requirements and a modest offering leverage profile of 46.09% LTV. Debt coverage is robust at a 2.00x DSCR under fixed-rate terms for approximately 10 years. In addition, the sponsor organization brings over 50 years of collective real estate industry experience.

Sources, uses & fee assessment

Capital Sources

$41.87MTotal offering

  • Offering Equity

    6.1% of offering

    $2.55M

  • Offering Debt

    55.62% LTV on acq.

    $19.30M

Where the Capital Goes

$41.87MDeployed

  • Acquisition Cost

    100.0% of offering

    $41.87M

  • Offering Expenses

    5.7% of offering

    $2.37M

  • Reserves

    5.3% of offering

    $2.21M

Total Offering

$41.87M

Equity $2.55M + debt $19.30M

Acquisition Cost

$41.87M

100.0% of offering to the property

Total Fees & Expenses

$2.37M

6.00% of offering

Reserves

$2.21M

5.3% of offering

Sources include $19,298,000 in debt proceeds and equity proceeds applied toward the $34,700,000 purchase price and $41,868,000 total acquisition cost. Uses comprise property acquisition, $2,370,575 in front-end dealer and syndication expenses, $1,300,000 in improvement reserves, and additional lender and master tenant reserves.

Risk read

Tone reflects relative strength, not a rating

Financing Cost

Negative

The loan carries a 9.11% fixed rate across an approximate 10-year term, presenting high debt service obligations relative to the 4% acquisition cap rate.

Leverage & Coverage

Positive

The offering maintains conservative leverage at 46.09% offering LTV with an initial DSCR of 2.00x.

Fee Structuring

Negative

Front-end offering fees total $2,370,575 (6% load on offering price), with an additional $528,138 acquisition fee.

Prepayment Terms

Neutral

The debt includes yield maintenance, a securitization lockout with defeasance, and fixed premiums prior to September 2035.

Primary risks include a high fixed borrowing rate of 9.11% on the $19,298,000 debt facility and a tight spread between the 4% acquisition cap rate and borrowing costs. Furthermore, the syndication includes $2,370,575 in upfront transaction fees and substantial prepayment penalty constraints, including yield maintenance and defeasance provisions. Master tenant income participation is set at 80% above hurdle thresholds.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load on Offering

6.00%

Total fees ÷ offering price

Load on Equity

92.96%

Total fees ÷ offering equity

Premium / Discount

1%

Offering price vs. appraised value

Offering vs. Acquisition

120.7%

Offering price ÷ acquisition price

Price per Unit

$290,750

Offering price ÷ 144 units

The transaction shows an acquisition price of $34,700,000 and total acquisition cost of $41,868,000, reflecting a 6% load on offering price and $2,370,575 in total front-end fees. Debt capitalization stands at an acquisition LTV of 55.62% and an offering LTV of 46.09%. Initial Year 1 cash flow is projected at 4.43% against a 4% acquisition cap rate.

Sponsor

Sponsor

starboard-realty.com

Starboard Realty oversees $435,332,462 in assets under management. Management highlights more than 50 years of industry experience across multiple real estate cycles, though specific DST performance data is not detailed.

Multifamily Focus$435M+ AUM50+ Yrs Experience
Portfolio

• During Mr. Winn’s tenure as CEO of ValueRock Realty Partners, its portfolio consisted of 24 retail properties either owned 100% by the company or with limited partners or tenant in common.

Properties owned or managed

AUM

$435,332,462

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

The offering is sponsored by Starboard Realty, whose leadership reports over 50 years of hands-on real estate industry experience across acquisition, asset management, and disposition. The firm oversees $435,332,462 in assets under management. Specific track record details regarding prior Delaware Statutory Trust structures are not detailed in the offering excerpts.