Offering summary
Starboard Makley DST is a Delaware Statutory Trust offering sponsored by Starboard Realty Advisors to acquire Makley Place, a 140-unit multifamily residential community located in the Upper Arlington/Downtown submarket of Columbus, Ohio. The property was completed in 2022 and acquired for an acquisition price of $37,325,000, with a total offering price and total acquisition cost of $44,994,000. The transaction is financed with $23,684,000 in fixed-rate debt at an interest rate of 5.44% across an approximate 10-year term, resulting in an offering LTV of 52.64% and an acquisition LTV of 84%. Upfront offering fees and expenses include $2,397,375 in total front-end fees and an acquisition fee of $1,226,200. Underwriting metrics reflect a 5.25% acquisition cap rate, an 8.38% syndicated cap rate, a projected Year 1 income of 4.28%, and an initial DSCR of 1.70x. The sponsor manages $479,212,462 in assets under management and brings over 50 years of collective real estate experience.
Capital raise
0.0% of the offering is closed
$5,000,000 still available
$5,000,000
$0
0.0% of offering$0
Pending subscription$5,000,000
Open for subscriptionThe offering seeks $5,000,000 in offering equity to complement $23,684,000 in long-term debt financing. Total upfront syndication and offering expenses total $2,397,375, including selling commissions, placement agent fees, and dealer fees.
Offering terms
Sector
Multifamily residential community
Investment Category
DST
Projected First Year Cashflow
4.28%
Avg. 98% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$44,994,000
$321,386 per unit
Offering Debt
$23,684,000
5.44% · approximately 10 years
LTV
84%
On acquisition price
Units / Tenants
140
Upper Arlington/Downtown submarket, Columbus, Ohio
Property Age
The property was completed in 2022.
The offering encompasses a 140-unit, 2022-vintage multifamily asset in Columbus, Ohio, with a total acquisition cost of $44,994,000. Capitalization comprises $23,684,000 in fixed-rate debt at 5.44% and $5,000,000 in offering equity. The acquisition reflects a 5.25% acquisition cap rate and a 52.64% offering LTV.
Strengths & considerations
Key strengths
Recent Asset Vintage
2022 CompletionThe 140-unit multifamily property was recently completed in 2022, mitigating near-term structural capital expenditure needs.
Fixed-Rate Debt Profile
5.44% Fixed / 1.70x DSCRThe loan features a 10-year fixed rate of 5.44% and a comfortable initial debt service coverage ratio of 1.70x.
Moderate Offering Leverage
52.64% Offering LTVOffering leverage is moderate at 52.64% based on the $23,684,000 debt load against the $44,994,000 offering price.
Key considerations
Front-End Syndication Load
$2,397,375 Total Front-End FeesFront-end offering fees and syndication costs represent a 6% load on the offering price.
High Acquisition LTV
84% Acquisition LTVLeverage calculated against the base purchase price of $37,325,000 stands high at 84%.
Prepayment and Defeasance Terms
Yield Maintenance / DefeasanceThe loan is subject to yield maintenance or a 1% minimum penalty, two-year lockout upon securitization, and defeasance procedures.
The asset benefits from recent construction completed in 2022 and favorable debt terms including a 10-year fixed rate of 5.44% with a 1.70x DSCR. In addition, the sponsor brings an established operating history managing $479,212,462 in assets under management alongside an experienced property management partner.
Sources, uses & fee assessment
Capital Sources
- $5.00M
Offering Equity
11.1% of offering
- $23.68M
Offering Debt
84% LTV on acq.
Where the Capital Goes
- $44.99M
Acquisition Cost
100.0% of offering
- $2.40M
Offering Expenses
5.3% of offering
- $533K
Reserves
1.2% of offering
Total Offering
$44.99M
Equity $5.00M + debt $23.68M
Acquisition Cost
$44.99M
100.0% of offering to the property
Total Fees & Expenses
$2.40M
6.00% of offering
Reserves
$533K
1.2% of offering
Sources and uses reflect a purchase price of $37,325,000 within a total acquisition cost of $44,994,000. Total upfront fees with reserves equal $4,471,625, including a $1,226,200 acquisition fee, $264,005 in financing expenses, and $275,000 in Master Tenant reserves.
Risk read
Tone reflects relative strength, not a rating
Leverage & Refinancing
ModerateOffering LTV is 52.64%, but acquisition LTV against the $37,325,000 purchase price is 84%, supported by a 1.70x initial DSCR.
Fee Load
CautionUpfront fees and offering expenses total $2,397,375, including a $1,226,200 acquisition fee and $213,100 placement agent fee.
Asset Quality
Favorable140-unit multifamily community constructed in 2022 in the Columbus, OH submarket with minimal anticipated initial capital expenditure.
Exit Flexibility
ModerateDebt structure imposes yield maintenance or 1% penalty until three months prior to maturity in 2035, with defeasance post-securitization.
Key considerations include a high initial acquisition LTV of 84% and the syndication load, with total upfront fees of $2,397,375 embedded into the $44,994,000 total offering price. Prepayment is subject to yield maintenance or a 1% penalty prior to late-term windows, and defeasance restrictions apply post-securitization.
Calculated underwriting metrics
Syndicated Cap Rate
8.38%
NOI ÷ offering price
Upfront Load on Offering
6.00%
Total fees ÷ offering price
Load on Equity
47.95%
Total fees ÷ offering equity
Premium / Discount
1%
Offering price vs. appraised value
Offering vs. Acquisition
120.5%
Offering price ÷ acquisition price
Price per Unit
$321,386
Offering price ÷ 140 units
The spread between the $37,325,000 acquisition price and the $44,994,000 total acquisition cost reflects $2,397,375 in total front-end fees and a 6% load on offering price. The acquisition cap rate stands at 5.25% against a syndicated cap rate of 8.38%, while initial Year 1 income is projected at 4.28%.
Sponsor
Sponsor
Starboard Realty Advisors
Starboard Realty Advisors brings more than 50 years of hands-on real estate operating experience with $479,212,462 in current AUM. Offering documents confirm its role as DST sponsor, though historical syndication metrics are not individually itemized.
• Village Green manages 4,917 units spread across 21 properties in the Columbus market. • Mr. Carlton managed properties totaling approximately 1.6 million square feet in New England and worked on acquiring the “Flatley” portfolio for approximately $500 million. • Charles Dunn Company manages 30 million square feet of commercial properties in California, including office, retail, industrial, self-storage and multi-family properties, within which Mr. Winn managed a portfolio of Class A office and grocery-anchored shopping centers and served as Regional Manager of the Orange County office.
Properties owned or managed
$479,212,462
Across all programs
—
Prior DST offerings
—
DST-held assets
Makley Place’s 140 units support 1.5 full-time employees for managerial and leasing functions, and onsite staff will be reduced from 2.0 to 1.5 employees by sharing staff with another nearby asset owned by the Master Tenant.
Disclosed headcount
multifamily residential community
Stated strategy
Starboard Realty Advisors has over fifty (50) years of hands-on real estate experience across acquisitions, development, leasing, and dispositions. The sponsor currently oversees $479,212,462 in assets under management. However, offering documents do not provide a detailed historical track record specifically for prior DST syndications.