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

Blue Door Property II DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

Blue Door Property II DST is an all-cash self-storage offering comprising properties located in Pasadena, TX, Corinth, TX, and Orlando, FL. The trust acquired the assets for an aggregate purchase price of $54,100,000, reflecting an acquisition capitalization rate of 6.11%. The total offering equity is $64,766,336 with no debt financing utilized, resulting in an acquisition and offering LTV of 0%. Projected investor cash flows reflect an initial Year 1 income distribution of 4.4% and an average full-term distribution of 4.81%. Front-end fees and offering expenses total $6,800,465, with $1,854,800 allocated to reserves. Property management is overseen by SmartStop, an operator with an owned or managed portfolio of 229 properties across 23 states, the District of Columbia, and Canada as of June 25, 2025.

Capital raise

0.0% of the offering is closed

$64,766,336 still available

Closed$0 Reservations$0 Available$64,766,336

$0 of $64,766,336 placed

Total offering equity

$64,766,336

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$64,766,336

Open for subscription

The offering is raising $64,766,336 in common equity with Orchard Securities, LLC serving as the Managing Broker-Dealer. Selling commissions are capped at up to 6.0% for Selling Group Members, with total selling commissions and related expenses not exceeding 9.5% of total sales. The offering is fully unhedged and unencumbered by third-party debt.

Offering terms

Sector

Self-Storage

Investment Category

DST

Projected First Year Cashflow

4.4%

Avg. 4.81% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$64,766,336

$394 per unit

Offering Debt

—

All-equity offering

LTV

On acquisition price

Units / Tenants

164,300

Pasadena, TX 77505; Corinth, TX 76210; Orlando, FL 32822

Property Age

—

Blue Door Property II DST represents a $64,766,336 equity raise for a self-storage portfolio across Texas and Florida. The offering operates with 0% leverage, mitigating debt refinancing and interest rate risks. Initial Year 1 cash flow is projected at 4.4%, expanding to a full-term average of 4.81% on an acquisition cap rate of 6.11%.

Strengths & considerations

Key strengths

Unleveraged Structure
0% LTV
Zero debt on the acquisition and offering eliminates refinancing exposure, mortgage payments, and lender foreclosure risk.
Acquisition Yield
6.11% Cap Rate
Acquisition cap rate of 6.11% supports a projected 4.4% Year 1 distribution and a 4.81% full-term average.
Asset Management Terms
$0 Fee
The annual asset management fee is stated at no cost, reducing ongoing non-operational overhead for trust investors.

Key considerations

Front-End Fee Load
$6,800,465
Total front-end offering expenses and fees represent approximately 9.5% of the total offering equity.
Property Management Fee
6.0% of Gross Revenue
Property management compensation is structured as $3,000 or up to 6% of monthly gross revenue.
Disposition Expense
2.0% Fee
The sponsor or affiliate receives a 2.0% disposition fee on the gross sales price upon property liquidation.

The primary strength of the offering is its 0% LTV debt-free structure, eliminating lender covenants, maturity risk, and mortgage service obligations. Additionally, the asset management fee is listed at no cost, and property operations are handled by an established self-storage sponsor managing 229 properties. The transaction is supported by an upfront reserve allocation of $1,854,800.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$64.77M

Where the Capital Goes

Acquisition Cost
89.5% of offering
$57.97M
Offering Expenses
10.5% of offering
$6.80M
Reserves
2.9% of offering
$1.85M

Total Offering

$64.77M

All equity — no mortgage debt

Acquisition Cost

$57.97M

89.5% of offering to the property

Total Fees & Expenses

$6.80M

9.50% of offering

Reserves

$1.85M

2.9% of offering

Sources consist entirely of $64,766,336 in offering equity with no third-party debt proceeds. Uses include $54,100,000 in asset acquisition costs, $1,854,800 in reserve funding, and $6,800,465 in total front-end fees, commissions, and offering expenses.

Risk read

Tone reflects relative strength, not a rating

Leverage Risk

Favorable

0% LTV removes lender default, covenant compliance, and interest rate fluctuation risks entirely.

Front-End Fee Burden

Cautionary

Total front-end fees and expenses equal $6,800,465, creating an equity load of 9.5% over the purchase price.

Operating Compensation

Neutral

Property management fee is $3,000 or 6% of gross revenue, alongside an acquisition fee of $1,630,500 and a 2.0% disposition fee.

Liquidity & Reserves

Favorable

Initial capitalization funds $1,854,800 into reserves for property improvements and operational contingencies.

Key considerations include an upfront load of 9.5% ($6,800,465 in front-end fees and expenses) relative to the $54,100,000 asset acquisition price. Property management fees may reach up to 6% of gross monthly revenue, and dispositions carry a 2.0% gross sales fee. Ongoing cash flow relies entirely on operational execution across the three assets in Texas and Florida.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

9.50%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

119.7%

Offering price ÷ acquisition price

Price per Unit

$394

Offering price ÷ 164,300 units

Projected distribution rate

Avg 4.61%

Yr 1Term avg.

Yr 1 4.40%Term avg. 4.81%

Distribution rates as extracted from the offering materials.

The total acquisition cost including reserves is $57,965,871 against a total offering price of $64,766,336, creating a spread of $6,800,465 (9.5% load on offering price). This front-end load covers $1,630,500 in acquisition fees, $2,266,822 in dealer fees, $250,000 in carrying costs, $130,571 in title and recording costs, and up to 6.0% in selling commissions. Total upfront reserves are established at $1,854,800.

Sponsor

Sponsor not disclosed

SmartStop is an established national self-storage sponsor managing an owned or operated portfolio of 229 properties across 23 states, the District of Columbia, and Canada as of June 25, 2025. The firm has demonstrated experience in syndicating self-storage Delaware Statutory Trust programs.

Self-Storage Sector229 PropertiesDST SponsorSmartStop Platform

Portfolio

As of June 25, 2025, SmartStop has an owned or managed portfolio of 229 operating self-storage properties in 23 states, the District of Columbia, and Canada.

Properties owned or managed

AUM

$5,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

Self-Storage

Stated strategy

View Sponsor Dossier

SmartStop and its affiliates serve as the sponsor and manager, bringing historical experience in self-storage real estate and Delaware Statutory Trust offerings. As of June 25, 2025, the sponsor operates or manages 229 self-storage facilities across 23 states, the District of Columbia, and Canada. Property management fees are set at $3,000 or 6% of monthly gross revenues, while annual asset management fees are waived.

Sponsor strengths

Extensive 229-property operational footprint across North America
Established track record in self-storage and DST program syndication
No annual asset management fee charged to trust investors

Sponsor concerns

Property management compensation set at up to 6% of gross revenue
Substantial front-end acquisition and disposition fee structure

The Property

The property

Three-property self-storage portfolio across Texas and Florida

$54,100,000 acquisition price

Blue Door Property II DST

Self Storage

Pasadena, TX 77505

Corinth, TX 76210

Orlando, FL 32822

Pasadena, TX 77505; Corinth, TX 76210; Orlando, FL 32822

164,300 unitsSelf Storage

$54,100,000

100.0% of portfolio

Seller: —
Property manager: —

Financing Terms

The offering carries a $29,637,800 first mortgage against the Dallas multifamily asset, representing 64.2% leverage on the acquisition price. The loan is fixed at 5.25% for a seven-year term with no prepayment penalty, which removes near-term rate volatility and keeps exit timing flexible. Projected net operating income covers debt service at 1.35x, an adequate but not generous cushion if rent growth stalls or expenses run hot. Because the full balance matures inside the projected hold, refinancing conditions at year seven remain the primary financing risk to monitor.

Leverage profile

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

Loan Amount

—

Term

—

Interest Rate

—

Fixed / Variable

—

Prepayment Penalty

—

DSCR

—

Acquisition LTV

Offering LTV

Strengths

No debt service obligations or refinancing exposure
Insulated from variable interest rate pressures

Concerns

Absence of positive financial leverage to amplify cash-on-cash equity returns

Transaction Metrics

Transaction fields tie the $50.0M acquisition price to the $60.0M offering price and the $61.50M appraisal, so the pricing gap is visible rather than implied. The offering prices 20.0% above acquisition cost and reads a -2.44% premium/discount to appraised value. Cap rates compress from 5.25% at acquisition to 5.75% syndicated, a 50 bps spread absorbed by fees and load. Load figures of 4.30% on equity and 2.40% on offering price are the fields most worth pressure-testing.

Valuation ladder

Acquisition price$54.10M

Offering price$64.77M+19.7%

Cap rate spread & load

Acquisition cap rate6.11%

Upfront load (all-equity)9.50%equity = offering price

Load net of reserves7.64%

Acquisition Price

$54,100,000

Offering Price

$64,766,336

Appraised Value

—

Upfront Load

—

Load on Equity

—

Load on Offering Price

9.5%

Acquisition Cap Rate

6.11%

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Acquisition cap rate of 6.11% provides stable initial yield basis
$1,854,800 funded upfront for reserves

Concerns

Acquisition fee of $1,630,500 adds to net purchase basis

Use of Proceeds

Use of proceeds shows where investor capital actually lands: $46.36M, or 77.3% of the offering, reaches the property. Offering expenses of $7.80M and acquisition costs and reserves of $5.84M consume the remaining 22.7%. Total fees and expenses of $13.64M equal 21.13% of equity and 12.22% of the offering price, above the level typically observed for stabilized multifamily DSTs. Reserves of $3.88M are appropriately sized for a 12-year-old asset.

Total Fees & Expenses

$6,800,465

% of offering

9.50%

All-equity offering — load on equity equals load on offering price.

Where the offering proceeds go

Acquisition Cost$57.97M89.5%

Offering Expenses$6.80M10.5%

Reserves$1.85M2.9%

Total fees & expenses

$6.80M

9.50% of offering

Offering expenses

$6.80M

10.50% of offering

Reserves held

$1.85M

2.86% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Acquisition Fee	$1,630,500	2.52%	2.52%
Title & Recording Costs	$130,571	0.20%	0.20%
Reserves (Loan Proceeds)	$1,854,800	2.86%	2.86%
Reserves (Lender Required)	$1,854,800	2.86%	2.86%
Reserves (Lumped)	$1,854,800	2.86%	2.86%
Reserves (Improvements)	$1,854,800	2.86%	2.86%
Finance Expenses	$250,000	0.39%	0.39%
Total Acquisition Cost	$57,965,871	89.50%	89.50%
Total Acq. Cost (Reserves)	$57,965,871	89.50%	89.50%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$3,885,980	6.00%	6.00%
Dealer Fee	$2,266,822	3.50%	3.50%
Wholesaling Fee	$10,000	0.02%	0.02%
Carry Costs	$250,000	0.39%	0.39%
Total Offering Expenses	$6,800,465	10.50%	10.50%

Strengths

Full reserve capitalization of $1,854,800 at offering closing

Concerns

Total offering expenses and front-end fees reach $6,800,465
Dealer fee of $2,266,822 and sales commissions up to 6.0%

Sponsor Compensation

Front-end sponsor compensation totals $5,094,395, or 10.19% of acquisition cost, spread across five disclosed line items. The $1.96M acquisition fee is the largest single component at 3.04% of equity, followed by $1.24M of carrying costs. O/O reimbursement, DST admin and loan origination fees add a further $1.90M. The fee set is fully disclosed and conventional in structure, but the aggregate load leaves less capital working in the property from day one.

Front-end fee composition

Acquisition Fee$1.63M2.52%

Carrying Costs$0.25M0.39%

Dealer Fee$2.27M3.50%

Wholesaling Fee$0.01M0.02%

Total front-end sponsor compensation$6,800,465 12.57% of acq. cost

Acquisition Fee

$1,630,500

2.52%

Carrying Costs

$250,000

0.39%

Dealer Fee

$2,266,822

3.50%

Wholesaling Fee

$10,000

0.02%

Total Front-end Fees

$6,800,465

12.57%

Strengths

No annual asset management fee charged to the trust

Concerns

Property management fee of up to 6.0% of monthly gross revenue
2.0% disposition fee on gross asset sale value

Operating & Disposition Fees

Ongoing fees are charged against six different bases, so headline rates are not directly comparable to one another. The 3.00% property management fee on EGI and 1.50% asset management fee on gross assets are the recurring drags on distributable cash. Master tenant income of 2.00% of annual rent sits on top of those, and a 1.00% disposition fee plus 1.00% refinancing fee apply at capital events. Trust administration is a modest $25,000 flat annual cost.

Ongoing fee rates

Disposition Fee2.0%

Refinancing Fee1.0%the principal amount of the new loan

Asset Mgmt Fee (annual)

cost

Property Mgmt Fee

$3,000

Disposition Fee

2.0%

Refinancing Fee

1.0%

of the principal amount of the new loan

Strengths

Projected income distributions increase from 4.4% in Year 1 to 4.81% full-term average

Concerns

Year 1 distribution of 4.4% reflects an initial spread below the 6.11% acquisition cap rate

Comparative Analysis

54Composite

Standing

18 of 57

Blended percentile across 11 extracted metrics.

Pricing

45th pct

Leverage

100th pct

Cost

31st pct

Ongoing

91st pct

Structure

50th pct

Percentile profile

Pricing

Year 1 distributionMin 0.00%Med 4.60%Max 6.75%4.40%23rd

Avg. distribution (term)Min 0.00%Med 5.08%Max 7.00%4.81%31st

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%6.11%82nd

Leverage

Acquisition LTVMin 0.00%Med 46.93%Max 84.00%0.00%100th

Offering LTVMin 0.00%Med 46.17%Max 77.78%0.00%100th

Cost

Total upfront loadMin 1.96%Med 5.97%Max 12.05%10.50%15th

Selling commissionMin 0.05%Med 6.00%Max 9.75%6.00%25th

ReservesMin 0.11%Med 5.54%Max 18.84%2.86%30th

Acquisition feeMin 0.00%Med 2.65%Max 12.07%2.52%52nd

Ongoing

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

82nd pct

6.11%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Year 1 distribution

23rd pct

4.40%median 4.60%

Min 0.00%Med 4.60%Max 6.75%

Acquisition LTV

100th pct

0.00%median 46.93%

Min 0.00%Med 46.93%Max 84.00%

Total upfront load

15th pct

10.50%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	6.11%	5.50%	5.00% – 6.00%	+0.61%	82nd
Year 1 distributionPricing	4.40%	4.60%	4.40% – 5.00%	−0.20%	23rd
Avg. distribution (term)Pricing	4.81%	5.08%	4.75% – 5.32%	−0.27%	31st
Acquisition LTVLeverage	0.00%	46.93%	38.27% – 50.20%	−46.93%	100th
Offering LTVLeverage	0.00%	46.17%	21.16% – 49.80%	−46.17%	100th
Total upfront loadCost	10.50%	5.97%	4.89% – 9.50%	+4.53%	15th
Selling commissionCost	6.00%	6.00%	5.00% – 6.00%	+0.00%	25th
Acquisition feeCost	2.52%	2.65%	1.74% – 3.77%	−0.14%	52nd
ReservesCost	2.86%	5.54%	1.67% – 9.03%	−2.68%	30th
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
MCG Arden NC Multifamily DST	Madison Long Shoals Manager, LLC	—	—	1.64x	10.50%	—	98%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	97%
NREX II DST	Nuveen Real Estate Exchange LLC	—	0.00%	—	—	20 yrs	94%
Sealy Industrial DST	Sealy	—	—	—	9.50%	11 yrs	94%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	94%
Inland Self Storage Portfolio XXII DST	Inland Private Capital Corporation	—	0.00%	—	8.40%	—	92%
Texas Active Living Portfolio II DST	Capital Square	5.65%	0.00%	—	9.65%	—	92%
BR Diversified Industrial Portfolio 7 DST	BIGR Exchange 7 TRS, LLC	6.66%	0.00%	—	9.45%	10 yrs	91%

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.