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
Madison Waterstar Orlando DST is a Delaware Statutory Trust offering sponsored by Madison Capital Group, encompassing a 320-unit Class A multifamily housing community located in Kissimmee, FL. Constructed in 2023, the newly built asset was acquired for an acquisition price of $94,930,000, aligning with its as-is appraised fair market value of $94,930,000. The total offering price and equity raise amount to $106,751,437, structured with an acquisition loan-to-value (LTV) ratio of 40%. Initial Year 1 projected cash distribution is 4.5%, with a forecasted full-term average income distribution of 4.77%. Total upfront offering fees and expenses equal $8,056,358, which represents 7.55% of the gross offering proceeds, alongside $3,200,000 allocated to Master Tenant reserves. The property was acquired at an initial acquisition capitalization rate of 5.3%.
0.0% of the offering is closed
$106,751,437 still available
$106,751,437
$0
0.0% of offering$0
Pending subscription$106,751,437
Open for subscriptionThe sponsor is raising $106,751,437 in gross equity proceeds to fully capitalize the trust. Total upfront load, including selling commissions, broker-dealer allowances, and organizational expenses, totals $8,056,358, capped at 7.55% of gross proceeds. Net equity proceeds directly fund property acquisition and reserve escrows.
Sector
Multi-family apartment community
Investment Category
DST
Projected First Year Cashflow
4.5%
Avg. 4.77% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$106,751,437
$333,598 per unit
Offering Debt
—
All-equity offering
LTV
40%
On acquisition price
Units / Tenants
320
Kissimmee, FL 34747
Property Age
The Madison Waterstar multifamily community is a brand-new property that was built in 2023.
The offering features a newly constructed (2023) 320-unit multifamily community situated in Kissimmee, FL. Capitalized at a 40% acquisition LTV, the property supports a Year 1 cash flow yield of 4.5% and an acquisition cap rate of 5.3%. Total capitalized costs include $3,200,000 in Master Tenant reserves and $8,056,358 in upfront fees and offering expenses.
Modern Asset Vintage
2023Brand-new 320-unit construction significantly limits near-term capital expenditure requirements.
Moderate Leverage Profile
40%Acquisition loan-to-value ratio provides a conservative debt cushion against market volatility.
Master Tenant Reserve Buffer
$3,200,000Upfront liquidity funded into reserves protects operations and cash distributions.
Upfront Fee Load
$8,056,358Front-end load and offering expenses represent 7.55% of gross equity raised.
Initial Cash Flow Yield
4.5%Year 1 distribution starts at 4.5%, requiring operational growth to achieve the 4.77% term average.
Appraised Acquisition Basis
$94,930,000The property was acquired at 100% of its as-is appraised fair market value.
The property represents brand-new 2023 multifamily construction, minimizing near-term deferred maintenance risk. The acquisition was executed at the appraised value of $94,930,000 with a moderate 40% LTV leverage profile. Additionally, the structure incorporates substantial upfront liquidity via $3,200,000 in Master Tenant capital reserves.
Offering Equity
100.0% of offering
Acquisition Cost
87.5% of offering
Offering Expenses
7.5% of offering
Reserves
3.0% of offering
Unallocated / other uses
1.9% of offering
Total Offering
$106.75M
All equity — no mortgage debt
Acquisition Cost
$93.44M
87.5% of offering to the property
Total Fees & Expenses
$8.06M
7.55% of offering
Reserves
$3.20M
3.0% of offering
Sources comprise $106,751,437 in total offering equity. Uses include the $94,930,000 property acquisition price, $3,200,000 in Master Tenant reserves, $654,080 in title and recording costs, $50,000 in third-party due diligence, $1,031 in financing expenses, and $8,056,358 in total front-end offering fees and expenses.
Tone reflects relative strength, not a rating
Leverage & Debt
Moderate debt profileAcquisition LTV is established at 40%, keeping total trust leverage at a manageable level.
Fee Burden
Front-end loadTotal front-end expenses and syndication costs total $8,056,358 or 7.55% of gross offering equity.
Asset Execution
New constructionBuilt in 2023, the asset eliminates legacy physical defects but requires stabilization management.
Liquidity & Reserves
Substantial escrow$3,200,000 is placed into Master Tenant reserves to insulate operating cash flow.
Key underwriting considerations include the $8,056,358 front-end fee burden representing 7.55% of the offering size, which dilutes initial invested capital. Operating performance is dependent on lease-up and stabilization dynamics typical of a 2023 vintage asset in the Kissimmee submarket. Leverage risk is governed by a 40% acquisition LTV.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load
7.55%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
112.5%
Offering price ÷ acquisition price
Price per Unit
$333,598
Offering price ÷ 320 units
Distribution rates as extracted from the offering materials.
The offering equity of $106,751,437 covers the acquisition price of $94,930,000, capitalized acquisition costs with reserves of $98,695,080, and total front-end fees of $8,056,358. Total upfront fees and offering expenses account for 7.55% of the total gross proceeds. Year 1 projected distribution of 4.5% steps up to an average full-term distribution of 4.77%.
Sponsor
Madison Capital Group is the sponsor for the offering, focusing on multifamily investments. The firm manages the asset under a $60,000 annual asset management fee, with extracted data reflecting $5,000,000 in assets under management.
—
Properties owned or managed
$5,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
multi-family apartment community
Stated strategy
Madison Capital Group serves as the sponsor for this multifamily offering, focusing on apartment communities and asset operations. The sponsor discloses $5,000,000 in assets under management and collects an ongoing annual asset management fee of $60,000 alongside master tenant operational oversight. Historical multi-cycle operational volume across other divisions is not further detailed in the extracted records.
Established sector focus on multifamily apartment communities
Low fixed annual asset management fee of $60,000
Manages comprehensive master tenant operating structure
Extracted AUM is listed at $5,000,000
Historical track record and full portfolio metrics are not disclosed
The property
$94,930,000 acquisition price
Madison Waterstar Orlando DST
Multifamily housing investment opportunity
The Madison Waterstar multifamily community is a brand-new property that was built in 2023.
Kissimmee, FL 34747
Kissimmee, FL 34747
$94,930,000
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.
All-cash offering — no mortgage debt, so there is no leverage to chart.
—
—
—
—
—
—
40%
—
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.
$94,930,000
$106,751,437
The "As-Is" appraised fair market value of the Property, including personal property, is $94,930,000.
—
—
—
5.3%
—
—
—
—
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
$8,056,358
% of offering
7.55%
All-equity offering — load on equity equals load on offering price.
Total fees & expenses
$8.06M
7.55% of offering
Offering expenses
$8.06M
7.55% of offering
Reserves held
$3.20M
3.00% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $654,080 | 0.61% | 0.61% |
| Reserves (Master Tenant) | $3,200,000 | 3.00% | 3.00% |
| Finance Expenses | $1,031 | 0.00% | 0.00% |
| Total Acquisition Cost | $93,440,000 | 87.53% | 87.53% |
| Total Acq. Cost (Reserves) | $98,695,080 | 92.45% | 92.45% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $6,405,086 | 6.00% | 6.00% |
| Dealer Fee | $533,757 | 0.50% | 0.50% |
| BD Due Diligence Allowance | $1,067,514 | 1.00% | 1.00% |
| O&O Expenses | $8,056,358 | 7.55% | 7.55% |
| Third Party DD | $50,000 | 0.05% | 0.05% |
| Total Offering Expenses | $8,056,358 | 7.55% | 7.55% |
| Total Fees / Expenses | $8,056,358 | 7.55% | 7.55% |
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.
$533,757
0.50%
$8,056,358
8.49%
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.
$60,000
$3,222,690
Standing
43 of 57
Blended percentile across 9 extracted metrics.
Pricing
35th pct
Leverage
69th pct
Cost
48th pct
Ongoing
0th pct
Structure
50th 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
39th pct5.30%median 5.50%
Year 1 distribution
40th pct4.50%median 4.60%
Acquisition LTV
69th pct40.00%median 46.93%
Total upfront load
47th pct7.55%median 5.97%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 5.30% | 5.50% | 5.00% – 6.00% | −0.20% | 39th |
| Price per unitPricing | $334K | $284K | $180K – $434K | +$50K | 33rd |
| Year 1 distributionPricing | 4.50% | 4.60% | 4.40% – 5.00% | −0.10% | 40th |
| Avg. distribution (term)Pricing | 4.77% | 5.08% | 4.75% – 5.32% | −0.31% | 27th |
| Acquisition LTVLeverage | 40.00% | 46.93% | 18.89% – 50.20% | −6.93% | 69th |
| Total upfront loadCost | 7.55% | 5.97% | 4.89% – 9.50% | +1.57% | 47th |
| Selling commissionCost | 6.00% | 6.00% | 5.00% – 6.00% | 0.00% | 63rd |
| ReservesCost | 3.00% | 5.54% | 1.67% – 9.03% | −2.54% | 34th |
| Equity share of capitalStructure | 100.00% | 97.50% | 52.74% – 100.00% | +2.50% | 50th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 97% |
| Cottonwood Riverfront DST | CC Exchange TRS, Inc. | — | 39.26% | 2.00x | 8.70% | 7 yrs | 93% |
| Inland Mokena Senior Living DST | Inland Private Capital Corporation (IPC) | — | — | — | 8.40% | 31 yrs | 92% |
| Ideal Ecco Park DST | IDEAL Capital Group Holdings, LLC | — | — | 1.03x | 9.50% | 10 yrs | 91% |
| AX Diversified Retail Portfolio DST | Apollo RE Exchange, LLC | 6.00% | — | — | 7.50% | — | 90% |
| MDI Overland Park Net Lease DST | MDI Sponsor, LLC | — | — | — | 9.00% | 2.0 yrs | 90% |
| Sealy Industrial DST | Sealy | — | — | — | 9.50% | 11 yrs | 90% |
| Canyon State Minerals LLC | Montego Minerals | — | — | — | 9.50% | — | 89% |
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.