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LibraryThe Heron DST

Executive Summary

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The Heron DST

Preview Report

Offering summary

The Heron DST is a single-asset multifamily offering sponsored by CEDARst to acquire a five-story residential building constructed in 2023. The property was purchased for an acquisition price of $28,261,384, which compares to an appraised market value of $28,300,000 as of February 2, 2026. Total acquisition costs equal $30,369,062.5, funded via $12,625,000 in syndicated equity and debt financing. The loan features a fixed interest rate of 5.6% for an 8-year term, subject to an initial 12-month prepayment lockout and subsequent yield maintenance. Total front-end fees and offering expenses stand at $1,230,937.5, representing a 9.75% load on the offering equity. Operating liquidity is supported by $900,000 in master tenant reserves alongside projected master tenant income of $924,000.

Capital raise

0.0% of the offering is closed

$12,625,000 still available

Closed$0 Reservations$0 Available$12,625,000
$0 of $12,625,000 placed
Total offering equity

$12,625,000

Closed equity

$0

0.0% of offering
Current reservations

$0

Pending subscription
Available equity

$12,625,000

Open for subscription

The Trust is raising $12,625,000 in equity interests on a best-efforts basis through FINRA-member broker-dealers. Total placement fees reach up to 9.75% of gross proceeds, including selling commissions of up to 6.00%. Additional costs include a dealer fee of $94,687.5.

Offering terms

Sector

Multifamily

Investment Category

DST

Projected First Year Cashflow

—

Avg. — over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$12,625,000

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

—

Property Age

The Property consists of one five-story multifamily residential building that was built in 2023.

The offering involves a 2023-built, five-story multifamily asset acquired for $28,261,384 against an appraised value of $28,300,000. Total acquisition costs of $30,369,062.5 are capitalized with $12,625,000 in DST equity and fixed-rate debt at 5.6%. Front-end syndication fees and expenses total $1,230,937.5, resulting in a 9.75% load on offering equity.

Strengths & considerations

Key strengths

  • Recent Construction Vintage

    2023 Construction

    The five-story asset was built in 2023, minimizing immediate deferred maintenance and capital expenditure requirements.

  • Fixed-Rate Debt Structure

    5.6% Fixed / 8 Years

    The loan carries a fixed interest rate of 5.6% across an 8-year term, eliminating variable interest rate exposure.

  • Experienced Multifamily Sponsor

    $4,000,000,000 AUM

    CEDARst manages $4,000,000,000 in assets and has developed or invested in over 65 assets and 7,500 units since 2009.

Key considerations

  • Front-End Load Burden

    9.75%

    Total front-end fees and offering expenses equal $1,230,937.5, creating a 9.75% load on the $12,625,000 equity raise.

  • Prepayment Restraints

    12-Mo. Lockout + YM

    Financing includes a closed 12-month prepayment lockout followed by yield maintenance before terminating near loan maturity.

  • Ongoing Sponsor Compensation

    $151,000 / Yr + 3.0%

    The Trust is subject to a $151,000 annual asset management fee, a 3.0% property management fee on gross revenues, and a 3% disposition fee.

The asset provides modern physical infrastructure having been constructed in 2023, minimizing immediate capital expenditure requirements. Debt terms provide stability with a fixed 5.6% interest rate over an 8-year maturity. Furthermore, sponsor CEDARst brings substantial sector experience, managing $4,000,000,000 in assets under management across a portfolio of over 6,000 units.

Sources, uses & fee assessment

Capital Sources

$12.63MTotal offering

  • Offering Equity

    100.0% of offering

    $12.63M

Where the Capital Goes

$12.63MDeployed

  • Acquisition Cost

    240.5% of offering

    $30.37M

  • Offering Expenses

    9.8% of offering

    $1.23M

  • Reserves

    7.6% of offering

    $963K

Total Offering

$12.63M

All equity — no mortgage debt

Acquisition Cost

$30.37M

240.5% of offering to the property

Total Fees & Expenses

$1.23M

9.75% of offering

Reserves

$963K

7.6% of offering

Total acquisition costs of $30,369,062.5 are funded through $12,625,000 in offering equity and debt proceeds. Primary uses comprise the $28,261,384 acquisition price, $1,230,937.5 in front-end fees and offering expenses, $900,000 in master tenant reserves, $62,906 in loan proceed reserves, and $53,036 in title and recording costs. Financing expenses account for $1,031.

Risk read

Tone reflects relative strength, not a rating

Front-End Load

Syndication costs reduce initial equity backing.

Total upfront fees and offering expenses equal $1,230,937.5, representing 9.75% of the $12,625,000 offering price.

Debt Terms

Fixed interest rate provides rate certainty through an 8-year term.

Loan carries a fixed 5.6% interest rate over 8 years, subject to a 12-month lockout and subsequent yield maintenance.

Asset Age

Modern construction reduces near-term capital expenditure risk.

The property consists of one five-story residential building completed in 2023.

Sponsor Scale

Established operator with substantial multifamily management experience.

CEDARst manages $4,000,000,000 in AUM across a portfolio of over 6,000 active units.

The offering carries single-asset concentration risk in a single five-story multifamily property. Investors absorb $1,230,937.5 in upfront fees and expenses (a 9.75% load), alongside ongoing fee structures including a $151,000 annual asset management fee and a 3% disposition fee. Debt flexibility is constrained by a 12-month prepayment lockout followed by yield maintenance.

Calculated underwriting metrics

Syndicated Cap Rate

5.49%

NOI ÷ offering price

Upfront Load

9.75%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

44.7%

Offering price ÷ acquisition price

Price per Unit

—

Offering price ÷ — units

The property was acquired at an acquisition capitalization rate of 5.5% and syndicates at a 5.49% cap rate. Total offering expenses and front-end fees amount to $1,230,937.5, representing 9.75% of the $12,625,000 offering price. The acquisition price of $28,261,384 represents 100.14% parity against the $28,300,000 appraised valuation.

Sponsor

Sponsor

CEDARst

CEDARst is a real estate investment and development sponsor founded in 2009, with a dedicated sector focus on multifamily properties. The firm manages $4,000,000,000 in assets under management across eight states, encompassing a current portfolio of over 6,000 units stabilized and under development.

Multifamily Focus$4B AUM6,000+ UnitsFounded 2009
Portfolio

• Since inception in 2009, CEDARst has successfully developed or invested in over 65 assets totaling approximately 7,500 units across eight states. • Its current portfolio consists of over 6,000 units, stabilized and under development.

Properties owned or managed

AUM

$4,000,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

CEDARst maintains a team of full-time investment professionals and supporting staff, whose management team and other employees will be available to the Signatory Trustee.

Disclosed headcount

Sector focus

Multifamily

Stated strategy

View Sponsor Dossier

CEDARst serves as sponsor, bringing $4,000,000,000 in assets under management with a focus on the multifamily sector. Founded in 2009, the firm has developed or invested in over 65 assets comprising approximately 7,500 units across eight states. Its current active portfolio contains over 6,000 units stabilized and under development, backed by full-time investment and management personnel.