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

Cottonwood Riverfront DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

Cottonwood Riverfront DST is offering beneficial interests to raise $74,946,000 in equity for the acquisition of 805 Riverfront, a 285-unit multifamily rental property located at 805 Riverfront Street in West Sacramento, California. Completed in November 2023, the property was acquired for a total acquisition price of $108,400,000. The acquisition is capitalized with $74,946,000 in equity and $42,556,000 in fixed-rate debt, representing an offering and acquisition LTV of 39.26%. The financing carries a 5.08% fixed interest rate over a 7-Year Term with a reported DSCR of 2x. Total upfront fees and offering expenses total $6,520,302, reflecting an 8.7% load on equity. The offering is sponsored by CC Exchange TRS, Inc., an entity focused on multifamily rental properties.

Capital raise

0.0% of the offering is closed

$74,946,000 still available

Closed$0 Reservations$0 Available$74,946,000

$0 of $74,946,000 placed

Total offering equity

$74,946,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$74,946,000

Open for subscription

The sponsor seeks $74,946,000 in equity from investors under the DST structure. Syndication costs include a $3,747,300 dealer fee, $1,086,717 wholesaling fee, $936,825 BD due diligence allowance, and $936,825 BD marketing allowance. Total upfront loads represent 8.7% of the offering price.

Offering terms

Sector

Multifamily rental properties

Investment Category

DST

Projected First Year Cashflow

—

Avg. — over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$74,946,000

$262,968 per unit

Offering Debt

$42,556,000

5.08% · 7-Year Term

LTV

39.26%

On acquisition price

Units / Tenants

285

805 Riverfront Street, West Sacramento, California

Property Age

The property, 805 Riverfront, was completed in November 2023.

The offering features a 285-unit Class A multifamily asset completed in November 2023 in West Sacramento, California. The capital structure consists of $74,946,000 in equity and $42,556,000 in fixed-rate debt, reflecting a moderate-to-conservative LTV of 39.26%. Total front-end offering expenses are $6,520,302, equating to an 8.7% load on offering price.

Strengths & considerations

Key strengths

Low Leverage Capital Structure
39.26% LTV
The offering debt of $42,556,000 against a $108,400,000 acquisition price provides substantial equity cushion.
Favorable Fixed Financing
5.08% Rate / 2x DSCR
The 7-Year Term fixed interest rate provides payment stability with strong coverage.
Recent Construction Vintage
November 2023
The 285-unit property was completed in November 2023, minimizing near-term capital expenditure requirements.

Key considerations

Upfront Load and Syndication Costs
8.7% ($6,520,302)
Total front-end expenses and commissions represent 8.7% of equity raised, reducing initial capital efficiency.
Sponsor Scale Relative to Asset
$5,000,000 AUM
The sponsor reports $5,000,000 in AUM relative to an acquisition size of $108,400,000.
Maturity & Refinancing Profile
7-Year Term
The $42,556,000 loan matures in 7 years, requiring refinancing or asset disposition at that time.

The transaction benefits from a conservative capital structure with an offering LTV of 39.26% and a 2x DSCR. Debt terms are favorable with a 5.08% fixed interest rate for a 7-Year Term on the $42,556,000 loan. Additionally, the asset represents newly completed construction dating to November 2023, minimizing immediate deferred maintenance needs.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$74.95M
Offering Debt
39.26% LTV on acq.
$42.56M

Where the Capital Goes

Acquisition Cost
144.6% of offering
$108.40M
Offering Expenses
8.7% of offering
$6.52M
Reserves
1.7% of offering
$1.26M

Total Offering

$74.95M

All equity — no mortgage debt

Acquisition Cost

$108.40M

144.6% of offering to the property

Total Fees & Expenses

$6.52M

8.70% of offering

Reserves

$1.26M

1.7% of offering

Total capitalization of $117,502,000 is comprised of $74,946,000 in equity and $42,556,000 in debt proceeds. Uses include the $108,400,000 acquisition price, $6,520,302 in front-end fees and expenses, $1,250,000 in reserves, and other transaction costs.

Risk read

Tone reflects relative strength, not a rating

Leverage & Coverage

Favorable

Offering LTV is conservative at 39.26% with a 2x DSCR and fixed 5.08% borrowing rate.

Front-End Load

Cautionary

Total upfront fees equal $6,520,302, representing 8.7% of the $74,946,000 equity raise.

Asset Vintage

Favorable

Completed in November 2023, the 285-unit property requires limited near-term capital expenditure.

Sponsor Scale

Cautionary

Reported AUM of $5,000,000 is modest compared to the $108,400,000 total asset capitalization.

Primary risks include single-asset concentration in the West Sacramento multifamily market and refinancing risk upon maturity of the 7-Year Term debt. Total front-end load is 8.7% ($6,520,302), which dilutes net invested capital. Additionally, the sponsor disclosed assets under management of $5,000,000, which is relatively small compared to the $108,400,000 transaction size.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

8.70%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

69.1%

Offering price ÷ acquisition price

Price per Unit

$262,968

Offering price ÷ 285 units

The acquisition cost of $108,400,000 is funded by $74,946,000 of equity (63.8% of total capitalization before fees) and $42,556,000 of debt (39.26% LTV). Total offering expenses of $6,520,302 represent 8.7% of the equity raise. Reserves totaling $1,250,000 are designated for master tenant and property improvements.

Sponsor

CC Exchange TRS, Inc.

CC Exchange TRS, Inc. is the sponsor for Cottonwood Riverfront DST, focusing on multifamily rental properties with $5,000,000 in assets under management.

Multifamily FocusCC Exchange TRSDST Sponsor

Portfolio

—

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

multifamily rental properties

Stated strategy

View Sponsor Dossier

The offering is sponsored by CC Exchange TRS, Inc., whose stated investment focus is on multifamily rental properties. The sponsor reports assets under management of $5,000,000. Specific historical track record metrics and broader corporate history beyond this focus are not disclosed in the provided fields.

Sponsor strengths

Targeted focus on multifamily rental sector
Structured transaction with moderate 39.26% leverage
Funded $1,250,000 master tenant reserve

Sponsor concerns

Disclosed AUM is limited to $5,000,000
Historical track record metrics are not disclosed

The Property

The property

285-unit multifamily property in West Sacramento, CA

$108,400,000 acquisition price

Cottonwood Riverfront DST

multifamily rental property

The property, 805 Riverfront, was completed in November 2023.

805 Riverfront Street, West Sacramento, California

285 unitsmultifamily rental property

$108,400,000

100.0% of portfolio

Seller: —
Property manager: CC Exchange TRS, Inc.

Financing Terms

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.

Leverage profile

Loan amount$42.56M56.8% of offering · 39.26% LTV

Offering equity$32.39M43.2% of offering

Loan Amount

$42,556,000

Term

7-Year Term

Interest Rate

5.08%

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

Acquisition LTV

39.26%

Offering LTV

39.26%

Strengths

Fixed interest rate of 5.08% for a 7-Year Term
Strong coverage with 2x DSCR

Concerns

Balloon principal risk upon 7-year maturity

Transaction Metrics

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.

Valuation ladder

Acquisition price$108.40M

Offering price$74.95M+-30.9%

Cap rate spread & load

Upfront load (all-equity)8.70%equity = offering price

Load net of reserves7.02%

Acquisition Price

$108,400,000

Offering Price

$74,946,000

Appraised Value

—

Upfront Load

$87

Load on Equity

8.7%

Load on Offering Price

8.7%

Acquisition Cap Rate

—

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Established acquisition basis of $108,400,000
Funded master tenant reserve of $1,250,000

Concerns

Transaction closing costs include $229,186 in title and recording

Use of Proceeds

Gross equity proceeds of $9,230,000 fund acquisition equity, reserves of $829,949, and offering expenses totaling $923,000.

Total Fees & Expenses

$6,520,302

% of offering

8.70%

All-equity offering — load on equity equals load on offering price. · $1,250,000 including reserves (1.67% of offering)

Where the offering proceeds go

Acquisition Cost$108.40M144.6%

Offering Expenses$6.52M8.7%

Reserves$1.26M1.7%

Total fees & expenses

$6.52M

8.70% of offering

Offering expenses

$6.52M

8.70% of offering

Reserves held

$1.26M

1.68% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Title & Recording Costs	$229,186	0.31%	0.31%
Reserves (Loan Proceeds)	$1,250,000	1.67%	1.67%
Reserves (Lender Required)	$9,375	0.01%	0.01%
Reserves (Master Tenant)	$1,250,000	1.67%	1.67%
Reserves (Lumped)	$1,250,000	1.67%	1.67%
Reserves (Improvements)	$1,250,000	1.67%	1.67%
Loan & Lender Expenses	$717,111	0.96%	0.96%
Total Acquisition Cost	$108,400,000	144.64%	144.64%
Total Acq. Cost (Reserves)	$108,400,000	144.64%	144.64%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$3,747,300	5.00%	5.00%
Dealer Fee	$3,747,300	5.00%	5.00%
Placement Agent Fee	$749,460	1.00%	1.00%
Wholesaling Fee	$1,086,717	1.45%	1.45%
BD Due Diligence Allowance	$936,825	1.25%	1.25%
BD Marketing Allowance	$936,825	1.25%	1.25%
O&O Expenses	$374,730	0.50%	0.50%
Third Party DD	$10,671	0.01%	0.01%
Total Offering Expenses	$6,520,302	8.70%	8.70%
Total Fees / Expenses	$6,520,302	8.70%	8.70%
Total Upfront Fees (Reserves)	$1,250,000	1.67%	1.67%

Strengths

Substantial equity raise of $74,946,000 fully funds property acquisition

Concerns

$6,520,302 in front-end deductions from equity proceeds

Sponsor Compensation

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.

Front-end fee composition

Dealer Fee$3.75M5.00%

Wholesaling Fee$1.09M1.45%

Total front-end sponsor compensation$6,520,302 6.02% of acq. cost

Dealer Fee

$3,747,300

5.00%

Wholesaling Fee

$1,086,717

1.45%

Total Front-end Fees

$6,520,302

6.02%

Strengths

Total selling commissions and expenses capped at 8.7% of total sales

Concerns

Dealer fee of $3,747,300 and wholesaling fee of $1,086,717

Operating & Disposition Fees

The master tenant structure reflects master tenant income of $4,000,000, supporting the hotel operations and debt service requirements.

Ongoing fee rates

Strengths

New build (November 2023) reduces immediate CapEx obligations
$1,250,000 improvement reserve available

Concerns

Operational performance history and current occupancy are not disclosed

Comparative Analysis

54Composite

Standing

20 of 57

Blended percentile across 11 extracted metrics.

Pricing

55th pct

Leverage

54th pct

Cost

46th pct

Ongoing

0th pct

Structure

67th pct

Percentile profile

Pricing

Price per unitMin $24KMed $293KMax $3290K$263K55th

Leverage

Loan termMin 1 yrsMed 10 yrsMax 36 yrs7 yrs17th

DSCRMin 1.00xMed 1.99xMax 3.38x2.00x50th

Interest rateMin 3.91%Med 5.13%Max 9.11%5.08%59th

Offering LTVMin 0.00%Med 46.17%Max 77.78%39.26%70th

Acquisition LTVMin 0.00%Med 46.93%Max 84.00%39.26%72nd

Cost

ReservesMin 0.11%Med 5.54%Max 18.84%1.68%26th

Total upfront loadMin 1.96%Med 5.97%Max 12.05%8.70%36th

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

Ongoing

Structure

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

Hold periodMin 1 yrsMed 10 yrsMax 36 yrs7 yrs83rd

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 LTV

72nd pct

39.26%median 46.93%

Min 0.00%Med 46.93%Max 84.00%

DSCR

50th pct

2.00xmedian 1.99x

Min 1.00xMed 1.99xMax 3.38x

Interest rate

59th pct

5.08%median 5.13%

Min 3.91%Med 5.13%Max 9.11%

Total upfront load

36th pct

8.70%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
Price per unitPricing	$263K	$293K	$180K – $434K	−$30K	55th
Acquisition LTVLeverage	39.26%	46.93%	18.89% – 50.20%	−7.67%	72nd
Offering LTVLeverage	39.26%	46.17%	2.67% – 49.80%	−6.91%	70th
DSCRLeverage	2.00x	1.99x	1.73x – 2.12x	+0.01x	50th
Interest rateLeverage	5.08%	5.13%	5.00% – 5.48%	−0.04%	59th
Loan termLeverage	7 yrs	10 yrs	9.5 yrs – 10.5 yrs	−3 yrs	17th
Total upfront loadCost	8.70%	5.97%	4.89% – 9.50%	+2.73%	36th
Selling commissionCost	5.00%	6.00%	5.00% – 6.00%	−1.00%	75th
ReservesCost	1.68%	5.54%	1.75% – 9.03%	−3.86%	26th
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th
Hold periodStructure	7 yrs	10 yrs	9.5 yrs – 10.5 yrs	−3 yrs	83rd

Closest comparables

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Madison Waterstar Orlando DST	Madison Capital Group	5.30%	40.00%	—	7.55%	—	93%
BR Diversified Industrial Portfolio 8 DST	BIGR Exchange 8 TRS, LLC	6.32%	—	—	9.45%	—	92%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	92%
MCG Arden NC Multifamily DST	Madison Long Shoals Manager, LLC	—	—	1.64x	10.50%	—	90%
JWCM Vivian DST	JWCM Exchange I, LLC	4.70%	57.90%	—	12.05%	10 yrs	85%
Passco Riverside DST	PASSCO	4.75%	—	2.16x	7.65%	—	85%

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.