Dave Bulger

Vice President

O (855) 378-3443|C (561) 715-3235

E dbulger@carmonawealth.com

W carmonawealth.com

18 Formero Street, Rancho Mission Viejo, CA 92694

Investment underwriting report

AEI Healthcare Property VII DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

AEI Healthcare Property VII DST is a $50,500,000 all-equity offering sponsored by AEI Capital Corporation comprising three medical office properties located in Surprise, Arizona; Austin, Texas; and Bristol, Connecticut. The portfolio is being acquired for $45,299,110 at a stated acquisition capitalization rate of 7.00%. The offering requires no debt financing and targets a Year 1 cash flow yield of 5.00%, with a projected full-term average yield of 5.38%. Total front-end offering expenses and fees equal $3,850,148, representing a 7.25% load on total offering equity. AEI Capital Corporation brings a stated 50-year operating history and manages $1,650,000,000 in assets under management across its platform. Master tenant and offering reserves total $371,000 to support ongoing operations across the 1,000 offering units.

Capital raise

0.0% of the offering is closed

$50,500,000 still available

Closed$0 Reservations$0 Available$50,500,000

$0 of $50,500,000 placed

Total offering equity

$50,500,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$50,500,000

Open for subscription

The trust is raising $50,500,000 in total equity divided into 1,000 units. Total upfront fees, placement fees, and selling commissions are capped at 7.25% of total sales ($3,661,250 upfront load plus organizational expenses), paid out of gross proceeds.

Offering terms

Sector

Healthcare real estate

Investment Category

DST

Projected First Year Cashflow

Avg. 5.38% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$50,500,000

$50,500 per unit

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

1,000

16575 West Waddell Road, Surprise, Arizona 85388; 9817 N. Lake Creek Parkway, Austin, Texas 78717; 1251 Farmington Avenue, Bristol, Connecticut 06010

Property Age

—

The offering is a $50,500,000 unleveraged Delaware Statutory Trust portfolio comprising three medical office properties across Arizona, Texas, and Connecticut. Initial Year 1 cash distribution is projected at 5.00%, increasing to an average of 5.38% over the holding term.

Strengths & considerations

Key strengths

All-Equity Unleveraged Capital Structure
0% Debt
The offering utilizes zero debt financing, removing interest rate risk, default risk, and refinancing requirements.
Acquisition Cap Rate
7.00%
The three healthcare assets were acquired at a 7.00% capitalization rate based on the $45,299,110 purchase price.
Geographic Diversification
3 Properties
Assets are located across three distinct regional markets: Surprise (AZ), Austin (TX), and Bristol (CT).

Key considerations

Upfront Syndication Load
7.25%
Total upfront load and offering expenses total $3,850,148, reducing invested capital relative to total equity raised.
Appraisal to Offering Ratio
89.93%
The acquisition cost represents 89.93% of the total $50,500,000 offering price, reflecting syndication load dilution.
Escalating Asset Management Fee
4% Annual Increase
Asset management fees commence in 2027 at $20,000 per year and escalate by 4% annually thereafter.

Key strengths include an all-equity capital structure with no debt maturity or refinancing risk, a 7.00% portfolio acquisition cap rate, and geographic diversification across three distinct states. The offering is sponsored by an entity with $1,650,000,000 in assets under management and a 50-year firm history.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$50.50M

Where the Capital Goes

Acquisition Cost
89.8% of offering
$45.37M
Offering Expenses
7.6% of offering
$3.85M
Reserves
0.7% of offering
$371K
Unallocated / other uses
1.8% of offering
$908K

Total Offering

$50.50M

All equity — no mortgage debt

Acquisition Cost

$45.37M

89.8% of offering to the property

Total Fees & Expenses

$3.85M

7.25% of offering

Reserves

$371K

0.7% of offering

Sources comprise $50,500,000 in offering equity with zero financing proceeds. Uses consist of $45,299,110 for property acquisitions, $49,492 in title and recording costs, $371,000 in master tenant reserves, and $3,850,148 in upfront syndication and offering expenses.

Risk read

Tone reflects relative strength, not a rating

Leverage Profile

Positive

No financing was obtained for the acquisition, eliminating interest rate and maturity exposure.

Equity Load

Cautionary

Total upfront load and expenses equal $3,850,148, resulting in an 89.93% appraisal-to-offering ratio.

Asset Age Disclosure

Neutral / Missing Info

The offering documentation does not disclose the vintage or year built for the three properties.

Fee Escalations

Standard

Asset management fees are deferred until 2027 at $20,000 per year, escalating at 4% annually.

Primary underwriting considerations include front-end equity dilution with an appraisal-to-offering ratio of 89.93%, total upfront fees of $3,850,148, and ongoing asset management fees beginning in 2027 with 4% annual escalations. Specific property ages, construction vintages, and staffing counts are not disclosed.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

7.25%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

111.5%

Offering price ÷ acquisition price

Price per Unit

$50,500

Offering price ÷ 1,000 units

Projected distribution rate

Avg 5.19%

Yr 1Term avg.

Yr 1 5.00%Term avg. 5.38%

Distribution rates as extracted from the offering materials.

The acquisition price of $45,299,110 equates to an appraisal-to-offering ratio of 89.93%. Front-end syndication and organization expenses total $3,850,148, resulting in a 7.25% upfront load on offering equity, while reserves are established at $371,000.

Sponsor

AEI Capital Corporation

AEI Capital Corporation possesses a 50-year stated history in tax-advantaged real estate and manages $1,650,000,000 in total assets. The sponsor has executed 28 DST programs, though specific historical DST performance and employee counts are omitted from the excerpts.

$1.65B AUM50-Year Legacy28 DSTsHealthcare Focus

Portfolio

The sponsor’s DST currently owns three healthcare properties in its portfolio: the Surprise Project in Surprise, Arizona, the Austin Project in Austin, Texas, and the Bristol Project in Bristol, Connecticut.

Properties owned or managed

AUM

$1,650,000,000

Across all programs

DST programs

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

healthcare real estate

Stated strategy

View Sponsor Dossier

AEI Capital Corporation serves as sponsor, highlighting a 50-year legacy in tax-advantaged real estate investments and $1,650,000,000 in total assets under management. The firm has completed 28 DST programs, though specific staffing levels and DST historical track record details are not disclosed in the offering materials.

Sponsor strengths

Platform oversees $1,650,000,000 in assets under management.
50-year corporate history in tax-advantaged real estate investments.
Sponsor has completed 28 DST offerings.

Sponsor concerns

DST-specific track record details are not provided in the excerpts.
Total employee and staff count is not disclosed.

The Property

The property

Three medical office properties across Arizona, Texas, and Connecticut

$45,299,110 acquisition price

AEI Healthcare Property VII DST

medical office

16575 West Waddell Road, Surprise, Arizona 85388

9817 N. Lake Creek Parkway, Austin, Texas 78717

1251 Farmington Avenue, Bristol, Connecticut 06010

16575 West Waddell Road, Surprise, Arizona 85388; 9817 N. Lake Creek Parkway, Austin, Texas 78717; 1251 Farmington Avenue, Bristol, Connecticut 06010

1,000 unitsmedical office

$45,299,110

100.0% of portfolio

Seller: —
Property manager: AEI Capital Corporation

Financing Terms

The trust secured a $17,600,000 loan with a 10-year fixed term at 5.1% interest, maintaining a 45% LTV and a 2.53x DSCR.

Leverage profile

All-cash offering — no mortgage debt, so there is no leverage to chart.

Loan Amount

—

Term

N/A (no financing obtained)

Interest Rate

—

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

—

Acquisition LTV

—

Offering LTV

—

Strengths

All-equity structure with 0% leverage eliminates debt maturity and rate risk.

Concerns

Lack of debt leverage limits potential return amplification from positive financial leverage.

Transaction Metrics

The property was acquired for $33,065,000 at a 4.76% cap rate, resulting in a total acquisition cost of $34,329,352.

Valuation ladder

Acquisition price$45.30M

Offering price$50.50M+11.5%

Cap rate spread & load

Acquisition cap rate7.00%

Upfront load (all-equity)7.25%equity = offering price

Load net of reserves6.89%

Acquisition Price

$45,299,110

Offering Price

$50,500,000

Appraised Value

—

Upfront Load

$3,661,250

Load on Equity

7.25%

Load on Offering Price

7.25%

Acquisition Cap Rate

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

89.93%

Less Reserves %

—

Strengths

Acquired at a 7.00% capitalization rate.
Funded reserve pool established at $371,000.

Concerns

Acquisition price of $45,299,110 requires $3,850,148 in syndication expenses to complete.

Use of Proceeds

Total sources of $39,408,522 fund the acquisition price ($33,065,000), upfront fees ($2,234,533), carry costs ($995,000), and reserves ($215,000).

Total Fees & Expenses

$3,850,148

% of offering

7.25%

All-equity offering — load on equity equals load on offering price. · $1,278,500 including reserves (2.53% of offering)

Where the offering proceeds go

Acquisition Cost$45.37M89.8%

Offering Expenses$3.85M7.6%

Reserves$371K0.7%

Unallocated / other uses$908K1.8%

Total fees & expenses

$3.85M

7.25% of offering

Offering expenses

$3.85M

7.62% of offering

Reserves held

$371K

0.73% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Title & Recording Costs	$49,492	0.10%	0.10%
Reserves (Loan Proceeds)	$371,000	0.73%	0.73%
Reserves (Master Tenant)	$371,000	0.73%	0.73%
Reserves (Lumped)	$371,000	0.73%	0.73%
Total Acquisition Cost	$45,371,352	89.84%	89.84%
Total Acq. Cost (Reserves)	$46,649,852	92.38%	92.38%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$2,525,000	5.00%	5.00%
Placement Agent Fee	$631,250	1.25%	1.25%
BD Due Diligence Allowance	$35,000	0.07%	0.07%
BD Marketing Allowance	$505,000	1.00%	1.00%
O&O Expenses	$153,898	0.30%	0.30%
Third Party DD	$35,000	0.07%	0.07%
Total Offering Expenses	$3,850,148	7.62%	7.62%
Total Fees / Expenses	$3,850,148	7.62%	7.62%
Total Upfront Fees (Reserves)	$1,278,500	2.53%	2.53%

Strengths

Reserves of $371,000 funded directly from gross proceeds.

Concerns

Total front-end fees and expenses total $3,850,148 (7.25% load on equity).

Sponsor Compensation

Sponsor compensation includes a $578,638 acquisition fee, $654,256 dealer fee, up to 6.0% selling commissions, and a ($35,000) annual asset management fee.

Front-end fee composition

Strengths

Asset management fee is deferred until 2027.

Concerns

Property management fee is set at 5% of gross annual rents.
Disposition fee is 2% plus up to 0.5% internal expenses.

Operating & Disposition Fees

Master tenant income is projected at $2,336,000 with $215,000 funded into dedicated master tenant reserves.

Ongoing fee rates

Property Mgmt Fee5%the annual gross rents

Disposition Fee2%

Asset Mgmt Fee (annual)

$20,000

Property Mgmt Fee

of the annual gross rents

Disposition Fee

Trust Administration

Initial

of set-up fee of $500 and will receive an annual fee of $2,000

Strengths

Master tenant reserves established at $371,000.
Initial cash yield projected at 5.00%.

Concerns

Specific tenant leases, rollover schedules, and operational expenses are not detailed in the excerpts.

Comparative Analysis

66Composite

Standing

3 of 57

Blended percentile across 10 extracted metrics.

Pricing

85th pct

Leverage

0th pct

Cost

43rd pct

Ongoing

71st pct

Structure

50th pct

Percentile profile

Pricing

Year 1 distributionMin 0.00%Med 4.51%Max 6.75%5.00%72nd

Avg. distribution (term)Min 0.00%Med 5.05%Max 7.00%5.38%78th

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%7.00%91st

Price per unitMin $24KMed $293KMax $3290K$51K98th

Leverage

Cost

ReservesMin 0.11%Med 5.54%Max 18.84%0.73%9th

Total upfront loadMin 1.96%Med 5.97%Max 12.05%7.62%45th

Selling commissionMin 0.05%Med 6.00%Max 9.75%5.00%75th

Ongoing

Property management feeMin 2.50%Med 4.25%Max 7.00%5.00%50th

Disposition feeMin 1.00%Med 2.95%Max 7.50%2.00%91st

Structure

Equity share of capitalMin 6.09%Med 97.50%Max 100.00%100.00%50th

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.

Where the headline metrics fall in the cohort

Acquisition cap rate

91st pct

7.00%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Year 1 distribution

72nd pct

5.00%median 4.51%

Min 0.00%Med 4.51%Max 6.75%

Total upfront load

45th pct

7.62%median 5.97%

Min 1.96%Med 5.97%Max 12.05%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Acquisition cap ratePricing	7.00%	5.50%	5.00% – 6.00%	+1.50%	91st
Price per unitPricing	$51K	$293K	$184K – $434K	−$243K	98th
Year 1 distributionPricing	5.00%	4.51%	4.40% – 5.00%	+0.49%	72nd
Avg. distribution (term)Pricing	5.38%	5.05%	4.75% – 5.31%	+0.33%	78th
Total upfront loadCost	7.62%	5.97%	4.89% – 9.50%	+1.65%	45th
Selling commissionCost	5.00%	6.00%	5.00% – 6.00%	−1.00%	75th
ReservesCost	0.73%	5.54%	1.76% – 9.03%	−4.81%	9th
Property management feeOngoing	5.00%	4.25%	3.00% – 5.00%	+0.75%	50th
Disposition feeOngoing	2.00%	2.95%	2.00% – 3.50%	−0.95%	91st
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
Cottonwood Riverfront DST	CC Exchange TRS, Inc.	—	39.26%	2.00x	8.70%	7 yrs	94%
MDI Overland Park Net Lease DST	MDI Sponsor, LLC	—	—	—	9.00%	2.0 yrs	94%
NREX II DST	Nuveen Real Estate Exchange LLC	—	0.00%	—	—	20 yrs	94%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	91%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	90%
BR Diversified Industrial Portfolio 7 DST	BIGR Exchange 7 TRS, LLC	6.66%	0.00%	—	9.45%	10 yrs	89%
Inland Self Storage Portfolio XXII DST	Inland Private Capital Corporation	—	0.00%	—	8.40%	—	89%
Inland Alt Senior Living II DST	Inland	7.53%	—	3.00x	—	12 yrs	88%

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.