Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
Offering summary
307 Stockton Fee DST is a Delaware Statutory Trust offering sponsored by Mercer Street, comprising a 150-unit multifamily residential property known as South Bank Apartments located at 307 Stockton Street, Richmond, Virginia. The property was originally built in 1915 and was acquired for a purchase price of $23,000,000. Total offering capitalization is $37,899,297, funded via $18,949,297 in offering equity and $18,950,000 in fixed-rate debt, representing an offering loan-to-value ratio of 50%. The underlying loan carries a 3.91% fixed interest rate with an initial interest-only period until September 1, 2025, transitioning to a 30-year amortization schedule prior to maturity on August 1, 2031, supported by an initial debt service coverage ratio of 2.1x. Target investor cash distribution starts at 4.25% in Year 1 with a projected full-term average income yield of 4.13%. Total front-end offering fees and expenses equal $1,894,930, alongside capitalized reserves totaling $1,146,062 across lender, improvement, and lumped reserves.
0.0% of the offering is closed
$18,949,297 still available
$18,949,297
$0
0.0% of offering$0
Pending subscription$18,949,297
Open for subscriptionThe sponsor is raising $18,949,297 in DST equity interests against a total offering price of $37,899,297. Front-end equity loads include up to 6.0% selling commissions (with aggregate selling commissions and related expenses capped at 10%), a $189,493 dealer fee, $189,493 wholesaling fee, and $189,493 BD due diligence allowance.
Sector
Apartment community
Investment Category
DST
Projected First Year Cashflow
4.25%
Avg. 4.13% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$37,899,297
$252,662 per unit
Offering Debt
$18,950,000
3.91% · interest only payments until September 1, 2025 and thereafter, interest and principal payments on a 30-year amortization schedule for the remainder of the Loan term, and (iii) has a maturity date of August 1, 2031
LTV
50%
On acquisition price
Units / Tenants
150
307 Stockton Street, Richmond, Virginia
Property Age
The South Bank Apartments property was built in 1915.
The offering covers a 150-unit vintage multifamily asset built in 1915 in Richmond, Virginia, capitalized at $37,899,297. The capital structure consists of 50% equity ($18,949,297) and 50% fixed-rate debt ($18,950,000) at 3.91% interest with an initial DSCR of 2.1x. Year 1 projected distribution is 4.25% with an expected full-term average yield of 4.13%.
Favorable Fixed Financing
3.91% Fixed Rate / 2.1x DSCRThe property secures $18,950,000 in fixed-rate debt at 3.91% with a healthy 2.1x coverage ratio through maturity in August 2031.
Moderate Leverage Structure
50% LTVOffering equity of $18,949,297 balances debt of $18,950,000, establishing a conservative 50% loan-to-value profile.
Local Submarket Experience
800 units / 8 communitiesSponsor Mercer Street owns and manages approximately 800 multifamily units across 8 communities in the Richmond MSA.
Asset Vintage
Built in 1915The South Bank Apartments asset was built in 1915, presenting higher potential ongoing capital expenditure requirements.
Amortization Step-Up
September 1, 2025Interest-only period expires on September 1, 2025, transitioning the loan to a 30-year principal and interest amortization schedule.
Substantial Front-End Loads
$1,894,930 Total FeesUpfront syndication, dealer, wholesaling, and depositor fees create a spread between property purchase price ($23,000,000) and offering price ($37,899,297).
The offering features conservative 50% leverage with long-term fixed financing at an interest rate of 3.91% and a robust debt service coverage ratio of 2.1x. The sponsor, Mercer Street, demonstrates significant local submarket presence with 800 multifamily units across 8 communities in the Richmond MSA. Additionally, the financing provides interest-only payments until September 1, 2025.
Offering Equity
50.0% of offering
Offering Debt
50% LTV on acq.
Acquisition Cost
95.0% of offering
Offering Expenses
5.0% of offering
Reserves
3.0% of offering
Total Offering
$37.90M
Equity $18.95M + debt $18.95M
Acquisition Cost
$36.00M
95.0% of offering to the property
Total Fees & Expenses
$1.89M
5.00% of offering
Reserves
$1.15M
3.0% of offering
Sources comprise $18,949,297 in offering equity and $18,950,000 in mortgage debt to meet the total $37,899,297 capitalization. Uses include the $23,000,000 property acquisition, $1,157,000 in financing expenses, $1,894,930 in front-end fees and offering expenses, and combined reserves totaling $1,146,062.
Tone reflects relative strength, not a rating
Debt Terms
PositiveFixed rate of 3.91% provides long-term rate certainty with 2.1x initial DSCR.
Physical Asset Age
CautiousConstructed in 1915; requires funded capital improvement reserves of $562,600.
Amortization Transition
CautiousInterest-only cash flow protection ends September 1, 2025, increasing debt service.
Fee Burden
ModerateTotal upfront fees and offering expenses reach $1,894,930 alongside a $652,653 depositor fee.
Key underwriting risks center on asset age, given that the property was constructed in 1915, requiring continuous capital maintenance. Refinancing and debt service step-up risk will emerge after September 1, 2025 when the loan switches from interest-only to a 30-year amortization schedule. Additionally, the front-end equity load includes multiple sponsor and dealer-related fees alongside a $652,653 depositor fee.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
5.00%
Total fees ÷ offering price
Load on Equity
10.00%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
164.8%
Offering price ÷ acquisition price
Price per Unit
$252,662
Offering price ÷ 150 units
Distribution rates as extracted from the offering materials.
The acquisition was executed at an initial acquisition cap rate of 4.61% on the $23,000,000 purchase price, with total acquisition cost totaling $36,004,367. Upfront fees and offering expenses total $1,894,930, representing 5.0% of the total offering capitalization. Debt financing comprises $18,950,000 at a 3.91% fixed rate maturing on August 1, 2031.
Sponsor
Mercer Street is a real estate investment and management firm with over 30 years of combined team experience and $3,500,000,000 in historical acquisitions and asset management across multiple property types. The firm maintains an established footprint in the Richmond MSA with 800 multifamily units across 8 communities and more than 1,000,000 square feet under management.
• Mercer owns and manages approximately 800 multifamily units across 8 communities in the Richmond MSA. • The company owns and manages more than one million square feet of residential and commercial properties.
Properties owned or managed
$3,500,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
The Sponsor’s officers, senior management, and key employees are responsible for managing the Signatory Trustee, but no specific employee count is provided.
Disclosed headcount
apartment community
Stated strategy
Mercer Street serves as the sponsor, possessing over 30 years of combined management team experience and $3,500,000,000 in historical acquisitions and asset management across commercial real estate sectors. In the local Richmond MSA, the firm owns and manages approximately 800 multifamily units across 8 communities and over 1,000,000 square feet of real estate. Specific prior DST program track record metrics and exact employee headcounts are not disclosed in the offering materials.
Over $3.5 billion in collective lifetime real estate acquisitions and asset management
Manages 800 multifamily units across 8 properties directly in the local Richmond market
More than 1,000,000 square feet of commercial and residential property management footprint
Specific historical track record for prior Delaware Statutory Trust offerings not disclosed
Exact firm employee headcount not provided in excerpts
The property
$23,000,000 acquisition price
307 Stockton Fee DST
multifamily residential property
The South Bank Apartments property was built in 1915.
307 Stockton Street, Richmond, Virginia
307 Stockton Street, Richmond, Virginia
$23,000,000
100.0% of portfolio
Financing consists of a $32,300,000 fixed-rate loan at 5.81% with a 36-year loan term. Debt service coverage is structured at 1.0x.
$18,950,000
Interest only payments until September 1, 2025 and thereafter, interest and principal payments on a 30-year amortization schedule for the remainder of the Loan term, and (iii) has a maturity date of August 1, 2031
3.91%
Fixed rate
8+ years of term remaining / 2+ years of interest-only remaining
2.1x
50%
50%
The asset was acquired for $37,145,000, whereas total offering capitalization stands at $41,530,000, reflecting front-end fees, closing costs, and reserves.
$23,000,000
$37,899,297
—
—
—
—
4.61%
—
—
—
4.1%
Gross equity proceeds of $9,230,000 fund acquisition equity, reserves of $829,949, and offering expenses totaling $923,000.
Total Fees & Expenses
$1,894,930
% of equity
10.00%
% of offering
5.00%
$1,562,742 including reserves (4.12% of offering)
Total fees & expenses
$1.89M
5.00% of offering
Offering expenses
$1.89M
5.00% of offering
Reserves held
$1.15M
3.02% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $967,500 | 5.11% | 2.55% |
| Reserves (Lender Required) | $211,638 | 1.12% | 0.56% |
| Reserves (Lumped) | $371,824 | 1.96% | 0.98% |
| Reserves (Improvements) | $562,600 | 2.97% | 1.48% |
| Finance Expenses | $1,157,000 | 6.11% | 3.05% |
| Total Acquisition Cost | $36,004,367 | 190.00% | 95.00% |
| Total Acq. Cost (Reserves) | $36,004,367 | 190.00% | 95.00% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,273,958 | 12.00% | 6.00% |
| Dealer Fee | $189,493 | 1.00% | 0.50% |
| Wholesaling Fee | $189,493 | 1.00% | 0.50% |
| BD Due Diligence Allowance | $189,493 | 1.00% | 0.50% |
| O&O Expenses | $189,493 | 1.00% | 0.50% |
| Third Party DD | $189,493 | 1.00% | 0.50% |
| Total Offering Expenses | $1,894,930 | 10.00% | 5.00% |
| Total Fees / Expenses | $1,894,930 | 10.00% | 5.00% |
| Total Upfront Fees (Reserves) | $1,562,742 | 8.25% | 4.12% |
Front-end compensation includes an acquisition fee of $1,114,350 and selling commissions up to 6.0%. Ongoing compensation includes a $50,000 annual asset management fee and a 1.00% refinancing fee.
$967,500
5.11%
$37,899,297
200.00%
$15,000
0.08%
$189,493
1.00%
$189,493
1.00%
$1,894,930
8.24%
The master tenant structure reflects master tenant income of $4,000,000, supporting the hotel operations and debt service requirements.
$1,375
3.5%
1.00%
Up
of to five percent (5%) of the cost of the Capital Expenses
Trust
of administration and other expenses, including a depositor fee of $652,653 payable to Depositor for holding the unsold Interests during the Offering irrespective of how long the Interests remain unsold.
Standing
50 of 57
Blended percentile across 16 extracted metrics.
Pricing
19th pct
Leverage
44th pct
Cost
49th pct
Ongoing
30th pct
Structure
58th pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Acquisition cap rate
3rd pct4.61%median 5.50%
Year 1 distribution
7th pct4.25%median 4.60%
Acquisition LTV
26th pct50.00%median 46.50%
DSCR
71st pct2.10xmedian 1.99x
Interest rate
100th pct3.91%median 5.13%
Total upfront load
74th pct5.00%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 4.61% | 5.50% | 5.07% – 6.00% | −0.89% | 3rd |
| Price per unitPricing | $253K | $293K | $180K – $434K | −$41K | 60th |
| Year 1 distributionPricing | 4.25% | 4.60% | 4.40% – 5.00% | −0.35% | 7th |
| Avg. distribution (term)Pricing | 4.13% | 5.08% | 4.77% – 5.32% | −0.95% | 7th |
| Acquisition LTVLeverage | 50.00% | 46.50% | 18.89% – 50.00% | +3.50% | 26th |
| Offering LTVLeverage | 50.00% | 46.09% | 2.67% – 49.53% | +3.91% | 23rd |
| DSCRLeverage | 2.10x | 1.99x | 1.73x – 2.12x | +0.11x | 71st |
| Interest rateLeverage | 3.91% | 5.13% | 5.01% – 5.48% | −1.21% | 100th |
| Loan termLeverage | 1 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −9 yrs | 0th |
| Total upfront loadCost | 5.00% | 7.50% | 4.89% – 9.50% | −2.50% | 74th |
| Selling commissionCost | 6.00% | 6.00% | 5.00% – 6.00% | 0.00% | 63rd |
| Acquisition feeCost | 5.11% | 2.52% | 1.74% – 3.58% | +2.59% | 3rd |
| ReservesCost | 6.05% | 5.53% | 1.67% – 9.03% | +0.52% | 55th |
| Disposition feeOngoing | 3.50% | 2.95% | 2.00% – 3.50% | +0.55% | 30th |
| Equity share of capitalStructure | 50.00% | 100.00% | 52.93% – 100.00% | −50.00% | 15th |
| Hold periodStructure | 1 yrs | 10 yrs | 9.5 yrs – 10.5 yrs | −9 yrs | 100th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| NexPoint Oasis DST | NexPoint Real Estate Advisors IV, L.P. | 4.84% | 53.05% | 1.81x | 4.39% | 10 yrs | 87% |
| Passco Preston Ridge DST | PASSCO | 5.00% | 46.93% | 2.06x | 4.06% | — | 87% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 87% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 86% |
| NewStar 17 Sweetwater Springs DST | Newstar Exchange | 4.76% | 45.00% | 2.53x | 5.67% | 10 yrs | 85% |
| CS1031 Parkland Apartments DST | Capital Square | 5.36% | 40.99% | 1.90x | 5.90% | 10 yrs | 84% |
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 84% |
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 84% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.