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Texas Active Living Portfolio II DST

Preview Report

Texas Active Living Portfolio II DST is an all-cash 64-unit active adult portfolio offering in Kerrville and Round Rock, Texas. Total offering size is $32,700,000 with a 10-year holding period, targeting a 4.50% Year 1 yield and 5.00% full-term average distribution.

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 4.50%Term avg. 5.00%

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

The property

Two 55+ active adult cottage communities, 64 total units in Texas

$26,700,000 acquisition price

Texas Active Living Portfolio II DST

64-UNIT PORTFOLIO OFFERING CONSISTING OF TWO BOUTIQUE ACTIVE ADULT (55+) COTTAGE-STYLE COMMUNITIES

Emerald Cottages of Kerrville was built in 2019 and Emerald Cottages of Round Rock was built in 2018, indicating that both properties are relatively new active adult communities.

Kerrville and Round Rock, Texas

Kerrville and Round Rock, Texas

64 units64-UNIT PORTFOLIO OFFERING CONSISTING OF TWO BOUTIQUE ACTIVE ADULT (55+) COTTAGE-STYLE COMMUNITIES

$26,700,000

100.0% of portfolio

Seller
—
Property manager
Capital Square
Sponsor

Capital Square

Asset Type

64-unit portfolio offering consisting of two boutique active adult (55+) cottage-style communities

Location

Kerrville and Round Rock, Texas

Units

64

Property Age

Emerald Cottages of Kerrville was built in 2019 and Emerald Cottages of Round Rock was built in 2018, indicating that both properties are relatively new active adult communities.

Offering Price

$32,700,000

Offering Debt

$0

Offering Equity

$32,700,000

Offering LTV

0%

Income % (Yr. 1)

4.5%

Avg. Income (Full Term)

5%

Minimum Cash Investment

$50,000

Minimum 1031 Investment

—

Strengths

  • All-cash capital structure with zero mortgage debt
  • 100% portfolio occupancy across two modern Texas communities
  • Target distribution of 4.50% Year 1 scaling to 5.00% average

Concerns

  • 21.56% offering price premium over purchase price
  • Small portfolio footprint of 64 total units
  • 10-year illiquid investment holding period