The DST utilizes an all-cash structure with no debt at the trust level. Consequently, loan origination costs, interest rate expenses, prepayment penalties, and debt service coverage ratios are not applicable.
Leverage profile
All-cash offering — no mortgage debt, so there is no leverage to chart.
Loan Amount
N/A - All-Cash at Trust level
Term
Trust Agreement terminates on the earlier of December 31, 2076 or sale/other disposition of the Property
Interest Rate
N/A - All-Cash at Trust level
Fixed / Variable
N/A - All-Cash at Trust level
Prepayment Penalty
N/A - All-Cash at Trust level
DSCR
N/A - No Mortgage Debt
Acquisition LTV
N/A - All-Cash at Trust level
Offering LTV
N/A - All-Cash at Trust level
Strengths
- Zero leverage protects investors from refinancing hurdles and debt service burdens.
- No lender-mandated cash sweeps or restrictive debt covenants at the trust level.
Concerns
- Absence of debt leverage means no positive financial leverage on equity returns.