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
FREX DB SERIES I DST is a Delaware Statutory Trust offering sponsored by Fortress Real Estate Exchange LLC. The trust owns a 336-unit residential student housing facility located at 5000 Domain Drive, Morgantown, WV 26501, which was originally constructed in 2012. The total offering price is $75,983,939, supported by $40,178,939 in offering equity and $35,805,000 in fixed-rate debt. The property was acquired for a purchase price of $65,100,000, resulting in an acquisition and offering loan-to-value ratio of 47.1%. The loan carries a fixed interest rate of 6.1% with a maturity date of March 11, 2036. The master tenant structure generates master tenant income of $2,929,474, with $2,303,906 allocated to lumped upfront reserves, including $1,862,684 in lender-required reserves.
0.0% of the offering is closed
$40,178,939 still available
$40,178,939
$0
0.0% of offering$0
Pending subscription$40,178,939
Open for subscriptionThe trust is raising $40,178,939 in equity from accredited Section 1031 exchange and cash investors. Combined with $35,805,000 in offering debt, total capitalized proceeds amount to $75,983,939.
Sector
Stud. Housing
Investment Category
DST
Projected First Year Cashflow
—
Avg. — over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$75,983,939
$226,143 per unit
Offering Debt
$35,805,000
6.1% · March 11, 2036
LTV
47.1%
On acquisition price
Units / Tenants
336
5000 Domain Drive, Morgantown, WV 26501
Property Age
The property’s buildings were originally constructed in 2012.
FREX DB SERIES I DST comprises a 336-unit student housing community located in Morgantown, WV, built in 2012. The transaction features an acquisition price of $65,100,000 against a total offering price of $75,983,939. Financing is secured at a conservative 47.1% LTV with a fixed interest rate of 6.1% maturing on March 11, 2036.
Moderate Debt Profile
47.1% LTVThe offering utilizes $35,805,000 in fixed-rate debt at 6.1% maturing in March 2036, establishing a conservative leverage ratio.
Significant Institutional Platform
$53,000,000,000 AUMFortress Real Estate Exchange LLC brings extensive scale and 20+ years of commercial real estate operating experience.
Substantial Reserve Capitalization
$2,303,906 ReservesUpfront capitalization includes $1,862,684 in lender-required reserves, $300,000 in master tenant reserves, and $300,000 in improvement reserves.
Offering Mark-Up and Fees
$4,218,789Total front-end fees and offering expenses represent a substantial load above the $65,100,000 base acquisition price.
Single-Asset Student Housing Focus
336 UnitsPerformance relies entirely on a single 2012-vintage student housing property located in Morgantown, WV.
Undisclosed Appraisal and Cap Rate
Not DisclosedThe provided documentation does not disclose the third-party appraised value, acquisition cap rate, or going-in yield.
The offering is capitalized with moderate leverage, reflecting an offering LTV of 47.1% on fixed-rate debt maturing in 2036. Fortress Real Estate Exchange LLC brings substantial scale to the transaction, with $53,000,000,000 in assets under management and over 20+ years of real estate experience. Additionally, the trust establishes $2,303,906 in total upfront reserves, including $1,862,684 in lender-required reserves and $300,000 in improvement reserves.
Offering Equity
52.9% of offering
Offering Debt
47.1% LTV on acq.
Acquisition Cost
85.7% of offering
Offering Expenses
5.6% of offering
Reserves
5.9% of offering
Unallocated / other uses
2.9% of offering
Total Offering
$75.98M
Equity $40.18M + debt $35.80M
Acquisition Cost
$65.10M
85.7% of offering to the property
Total Fees & Expenses
$4.22M
5.55% of offering
Reserves
$4.47M
5.9% of offering
Sources comprise $40,178,939 in equity and $35,805,000 in debt to fund the $75,983,939 total offering capitalization. Primary uses include the $65,100,000 acquisition price, $4,218,789 in total offering expenses/front-end fees, and $2,303,906 in total upfront reserves.
Tone reflects relative strength, not a rating
Sector Concentration
Student housing operations present cyclical leasing patterns tied to the university calendar.The asset is a 336-unit dedicated student housing community in Morgantown, WV.
Leverage & Refinancing
Debt terms are long-term and fixed, limiting near-term interest rate vulnerability.The $35,805,000 loan represents a 47.1% LTV with a 6.1% fixed interest rate maturing in March 2036.
Offering Load
Upfront fees and offering expenses widen the basis between equity raised and the property purchase price.Total offering expenses and front-end fees equal $4,218,789 on a $65,100,000 real estate acquisition.
Disclosure Limitations
Key valuation metrics are absent from the provided source materials.Appraised value, going-in cap rate, and specific selling commission breakdowns are not disclosed.
The asset is concentrated entirely in a single student housing property in Morgantown, WV, exposing cash flows to university-specific enrollment trends and student leasing cycles. Selling commissions and property cap rates are not disclosed in the provided materials. Additionally, the offering load includes $4,218,789 in total front-end fees and expenses above the $65,100,000 acquisition price.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
5.55%
Total fees ÷ offering price
Load on Equity
10.50%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
116.7%
Offering price ÷ acquisition price
Price per Unit
$226,143
Offering price ÷ 336 units
Total offering expenses and front-end fees are disclosed at $4,218,789 relative to the $65,100,000 property acquisition cost. The debt structure consists of $35,805,000 in fixed-rate financing at 6.1%, requiring an equity raise of $40,178,939 to complete the $75,983,939 syndication.
Sponsor
Fortress Real Estate Exchange LLC is an institutional sponsor managing $53,000,000,000 in assets under management with over 20+ years of real estate industry track record. The firm specializes in structuring DST syndications for Section 1031 exchange investors.
—
Properties owned or managed
$53,000,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Stud. Housing
Stated strategy
Fortress Real Estate Exchange LLC acts as the sponsor, backed by an institutional asset management platform with $53,000,000,000 in AUM and 20+ years of real estate experience. The sponsor possesses dedicated DST operational experience structuring Class 1 Beneficial Interests designed for Section 1031 exchange investors.
Institutional scale with $53,000,000,000 in total assets under management
Over 20+ years of commercial real estate operating experience
Established governance and master lease management platform for DSTs
Historical student housing track record specifics are not disclosed
Property-level disposition track record not detailed in available data
The property
$65,100,000 acquisition price
FREX DB SERIES I DST
residential student housing facility
The property’s buildings were originally constructed in 2012.
5000 Domain Drive, Morgantown, WV 26501
5000 Domain Drive, Morgantown, WV 26501
$65,100,000
100.0% of portfolio
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.
$35,805,000
March 11, 2036
6.1%
Fixed
—
—
47.1%
47.1%
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.
$65,100,000
$75,983,939
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—
—
—
—
—
—
—
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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
$4,218,789
% of equity
10.50%
% of offering
5.55%
$2,303,906 including reserves (3.03% of offering)
Total fees & expenses
$4.22M
5.55% of offering
Offering expenses
$4.22M
5.55% of offering
Reserves held
$4.47M
5.88% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Reserves (Lender Required) | $1,862,684 | 4.64% | 2.45% |
| Reserves (Master Tenant) | $300,000 | 0.75% | 0.39% |
| Reserves (Lumped) | $2,303,906 | 5.73% | 3.03% |
| Reserves (Improvements) | $300,000 | 0.75% | 0.39% |
| Total Acquisition Cost | $65,100,000 | 162.03% | 85.68% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $40,178,939 | 100.00% | 52.88% |
| O&O Expenses | $40,178,939 | 100.00% | 52.88% |
| Total Offering Expenses | $4,218,789 | 10.50% | 5.55% |
| Total Upfront Fees (Reserves) | $2,303,906 | 5.73% | 3.03% |
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.
$100,000
0.25%
$40,178,939
100.00%
$4,218,789
6.48%
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.
$2,929,474
Standing
38 of 57
Blended percentile across 9 extracted metrics.
Pricing
65th pct
Leverage
42nd pct
Cost
72nd pct
Ongoing
0th pct
Structure
25th 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 LTV
44th pct47.10%median 46.50%
Interest rate
6th pct6.10%median 5.11%
Total upfront load
58th pct5.55%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Price per unitPricing | $226K | $293K | $180K – $434K | −$67K | 65th |
| Acquisition LTVLeverage | 47.10% | 46.50% | 18.89% – 50.20% | +0.60% | 44th |
| Offering LTVLeverage | 47.10% | 46.09% | 2.67% – 49.80% | +1.01% | 40th |
| Interest rateLeverage | 6.10% | 5.11% | 5.00% – 5.35% | +0.99% | 6th |
| Loan termLeverage | 11 yrs | 10 yrs | 8.5 yrs – 10 yrs | +1 yrs | 77th |
| Total upfront loadCost | 5.55% | 7.50% | 4.89% – 9.50% | −1.95% | 58th |
| ReservesCost | 11.12% | 5.53% | 1.67% – 8.66% | +5.58% | 85th |
| Equity share of capitalStructure | 52.88% | 100.00% | 52.78% – 100.00% | −47.12% | 26th |
| Hold periodStructure | 11 yrs | 10 yrs | 8.5 yrs – 10 yrs | +1 yrs | 23rd |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 93% |
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 93% |
| Griffin Capital Tulsa BTR DST | Griffin Capital Residential Partners Institutional Property Exchange, LLC | 5.77% | 46.50% | — | 5.00% | 10 yrs | 92% |
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 92% |
| CS1031 Parkland Apartments DST | Capital Square | 5.36% | 40.99% | 1.90x | 5.90% | 10 yrs | 91% |
| Net-Leased Portfolio 76 DST | ExchangeRight Real Estate, LLC | — | 43.32% | 1.35x | 4.08% | 14.7 yrs | 91% |
| Passco Preston Ridge DST | PASSCO | 5.00% | 46.93% | 2.06x | 4.06% | — | 90% |
| CS1031 Cacema Townhomes DST | Capital Square Realty Advisors, LLC | 5.32% | 44.39% | 2.10x | 5.37% | 10 yrs | 90% |
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.