Offering Summary — DST Underwriting

NexPoint Small Bay III DST is raising $50,382,493 in equity for a $91,382,493 two-property multi-tenant industrial portfolio totaling 177 units. The portfolio includes the Arapaho Property in Richardson, TX and the Deerfield Property in Deerfield Beach, FL.

Capital structure

Offering Equity$30.36M50.6% · $121,449 / unit

Offering Debt$29.64M

Offering price

$60.0M

Price / unit

$240,000

Units

250

Property age

12 yrs

Projected distribution rate

Avg 6.75%

Yr 1Term avg.

Yr 1 4.68%Term avg. 6.50%

Year-one distribution of 6.25% stepping to 7.20% by year seven.

The property

Two-Property Small Bay Industrial Portfolio in Texas and Florida

$41,700,000 acquisition price

NexPoint Small Bay III DST

multi-tenant warehouse and industrial facilities

The Arapaho Property buildings were constructed between 1976 and 1980, while many Deerfield Property buildings were built in 1987-1988 and two additional buildings were built in 2017.

—

136 unitsmulti-tenant warehouse and industrial facilities

$41,700,000

100.0% of portfolio

Seller: —
Property manager: NexPoint Real Estate Advisors IV, L.P.

Sponsor

NexPoint Real Estate Advisors IV, L.P.

Asset Type

Multi-tenant warehouse and industrial facilities

Location

—

Units

136

Property Age

The Arapaho Property buildings were constructed between 1976 and 1980, while many Deerfield Property buildings were built in 1987-1988 and two additional buildings were built in 2017.

Offering Price

$91,382,493

Offering Debt

$41,000,000

Offering Equity

$50,382,493

Offering LTV

44.9%

Income % (Yr. 1)

4.68%

Avg. Income (Full Term)

6.5%

Minimum Cash Investment

—

Minimum 1031 Investment

—

Strengths

Two-property multi-tenant portfolio totaling 509,914 NRSF across Texas and Florida.
Parent Trust structure holds 100% of underlying DST beneficial interests.

Concerns

Year 1 initial distribution of 4.68% is modest relative to long-term average.