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

MCG Arden NC Multifamily DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

MCG Arden NC Multifamily DST is an offering sponsored by Madison Long Shoals Manager, LLC to acquire Venture at Long Shoals, an 86-unit boutique multifamily housing community completed in 2024. The total acquisition cost, including reserves, is $25,273,068, supported by an equity raise of $13,988,903. Financing is fixed at an interest rate of 5.27% with a debt service coverage ratio (DSCR) of 1.64x. The structure projects a Year 1 income rate of 4.75% and an average income rate of 4.75% over the full term, supported by master tenant income of $664,000. Total front-end offering expenses are $1,468,835, and master tenant reserves are funded at $425,000. Key items such as the property's appraised value, going-in cap rate, and the sponsor's historical DST experience are not disclosed in the provided materials.

Capital raise

0.0% of the offering is closed

$13,988,903 still available

Closed$0 Reservations$0 Available$13,988,903

$0 of $13,988,903 placed

Total offering equity

$13,988,903

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$13,988,903

Open for subscription

The equity raise target is $13,988,903. Front-end costs deducted from capital include a $279,778 wholesaling fee, a $139,889 dealer fee, and $69,945 in organizational and offering expenses, totaling $1,468,835 in offering expenses.

Offering terms

Sector

Multifamily housing community

Investment Category

DST

Projected First Year Cashflow

4.75%

Avg. 4.75% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$13,988,903

$162,662 per unit

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

Property Age

The property is a newly constructed boutique multifamily community completed in 2024.

The offering involves a newly constructed 86-unit boutique multifamily property built in 2024 with a total acquisition cost of $25,273,068. Equity required is $13,988,903, targeting an initial Year 1 income rate of 4.75%. Debt financing carries a fixed interest rate of 5.27% and an initial DSCR of 1.64x.

Strengths & considerations

Key strengths

New Construction Vintage
2024
The property is a newly constructed 86-unit boutique multifamily community completed in 2024.
Fixed Debt Coverage
5.27% / 1.64x DSCR
Debt is secured at a fixed interest rate of 5.27% with a debt service coverage ratio of 1.64x.
Master Tenant Reserves
$425,000
Upfront liquidity is established with $425,000 allocated to master tenant reserves.

Key considerations

Appraisal Not Disclosed
Not Disclosed
The appraised value and acquisition cap rate are not disclosed in the offering materials.
Limited Sponsor Scale
$5,000,000 AUM
Reported sponsor AUM is $5,000,000, with no DST experience or employee headcount disclosed.
Front-End Load
$1,468,835
Total front-end offering expenses and fees represent $1,468,835 of the overall capitalization.

The asset features brand-new 2024 construction, mitigating near-term capital replacement needs across its 86 units. Long-term fixed-rate financing at 5.27% provides interest rate certainty alongside a 1.64x DSCR. In addition, an upfront master tenant reserve of $425,000 supports operational stability.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$13.99M

Where the Capital Goes

Acquisition Cost
180.7% of offering
$25.27M
Offering Expenses
10.5% of offering
$1.47M
Reserves
3.0% of offering
$425K

Total Offering

$13.99M

All equity — no mortgage debt

Acquisition Cost

$25.27M

180.7% of offering to the property

Total Fees & Expenses

$1.47M

10.50% of offering

Reserves

$425K

3.0% of offering

Sources comprise $13,988,903 in offering equity alongside fixed-rate loan proceeds to fund the total capitalization of $25,273,068. Uses include the property purchase, $1,468,835 in total offering expenses, $540,000 in financing expenses, $133,580 in title and recording costs, and $425,000 in master tenant reserves.

Risk read

Tone reflects relative strength, not a rating

Valuation & Pricing

Appraised value not disclosed

The offering documentation does not disclose an appraised value or acquisition cap rate.

Financing & Debt

Fixed rate with 1.64x coverage

Financing is fixed at 5.27% interest with a DSCR of 1.64x and finance expenses of $540,000.

Sponsor Track Record

DST history not provided

Madison Long Shoals Manager, LLC reports $5,000,000 in AUM, but DST experience is not disclosed.

Offering Fee Load

Syndication expenses disclosed

Front-end expenses total $1,468,835, including a $279,778 wholesaling fee and a $139,889 dealer fee.

Valuation transparency is limited as the appraised value and acquisition cap rate are not disclosed. Additionally, the sponsor has limited disclosed assets under management ($5,000,000) and undisclosed prior DST experience. Performance relies on the single 86-unit property meeting master tenant obligations.

Calculated underwriting metrics

Syndicated Cap Rate

5.02%

NOI ÷ offering price

Upfront Load

10.50%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

—

Offering price ÷ acquisition price

Price per Unit

$162,662

Offering price ÷ 86 units

Projected distribution rate

Avg 4.75%

Yr 1Term avg.

Yr 1 4.75%Term avg. 4.75%

Distribution rates as extracted from the offering materials.

The syndicated capitalization rate is 5.02% based on a total acquisition cost of $25,273,068. The offering targets a 4.75% Year 1 income distribution and a 4.75% full-term average return, supported by master tenant income of $664,000. Front-end fees and offering expenses total $1,468,835.

Sponsor

Madison Long Shoals Manager, LLC

Madison Long Shoals Manager, LLC is the sponsor with $5,000,000 in reported AUM and a sector focus in multifamily housing. Specific details on DST track record, employee headcount, and wider portfolio holdings are not disclosed.

Multifamily Sector$5M Disclosed AUMSingle-Asset Focus

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 housing community

Stated strategy

View Sponsor Dossier

The sponsor for the offering is Madison Long Shoals Manager, LLC, which reports assets under management of $5,000,000. The sponsor's prior DST experience, historical track record, employee headcount, and broader portfolio property count are not disclosed in the excerpts.

Sponsor strengths

Focused on multifamily housing development.
Incorporates $425,000 master tenant reserve into offering structure.

Sponsor concerns

Prior DST experience is not disclosed.
Disclosed AUM is limited to $5,000,000 in offering excerpts.
Headcount and broader organizational size are not disclosed.

The Property

The property

86-Unit 2024-Vintage Multifamily Community

— acquisition price

MCG Arden NC Multifamily DST

multifamily housing development

The property is a newly constructed boutique multifamily community completed in 2024.

—

86 unitsmultifamily housing development

—

100.0% of portfolio

Seller: —
Property manager: Madison Long Shoals Manager, LLC

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

5.27%

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

1.64x

Acquisition LTV

—

Offering LTV

—

Strengths

Fixed interest rate of 5.27%.
DSCR of 1.64x provides debt service cushion.

Concerns

Finance expenses total $540,000.

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

Offering price$13.99M

Cap rate spread & load

Syndicated cap rate5.02%

Upfront load (all-equity)10.50%equity = offering price

Load net of reserves7.46%

Acquisition Price

—

Offering Price

$13,988,903

Appraised Value

—

Upfront Load

—

Load on Equity

—

Load on Offering Price

—

Acquisition Cap Rate

—

Syndicated Cap Rate

5.02%

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Syndicated cap rate reported at 5.02%.
Includes $425,000 in master tenant reserves.

Concerns

Acquisition cap rate and independent valuation not disclosed.

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

$1,468,835

% of offering

10.50%

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

Where the offering proceeds go

Acquisition Cost$25.27M180.7%

Offering Expenses$1.47M10.5%

Reserves$425K3.0%

Total fees & expenses

$1.47M

10.50% of offering

Offering expenses

$1.47M

10.50% of offering

Reserves held

$425K

3.04% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Title & Recording Costs	$133,580	0.95%	0.95%
Reserves (Master Tenant)	$425,000	3.04%	3.04%
Finance Expenses	$540,000	3.86%	3.86%
Total Acquisition Cost	$25,273,068	180.67%	180.67%
Total Acq. Cost (Reserves)	$25,273,068	180.67%	180.67%

Offering Expenses

Item	Amount	% Equity	% Offering
Dealer Fee	$139,889	1.00%	1.00%
Placement Agent Fee	$13,988,903	100.00%	100.00%
Wholesaling Fee	$279,778	2.00%	2.00%
O&O Expenses	$69,945	0.50%	0.50%
Total Offering Expenses	$1,468,835	10.50%	10.50%

Strengths

Fully accounts for reserves and transaction costs within total capitalization.

Concerns

Front-end offering expenses total $1,468,835.

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

Dealer Fee$0.14M1.00%

Wholesaling Fee$0.28M2.00%

Total front-end sponsor compensation$1,468,835 10.50% of acq. cost

Dealer Fee

$139,889

1.00%

Wholesaling Fee

$279,778

2.00%

Total Front-end Fees

$1,468,835

10.50%

Strengths

Breakdown provided for wholesaling ($279,778) and dealer fees ($139,889).

Concerns

Specific selling commission rates or amounts are not disclosed.

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

Master Tenant Income

$664,000

Strengths

Master tenant income structured at $664,000.

Concerns

Property-level operating expense details and historical occupancy are not disclosed.

Comparative Analysis

39Composite

Standing

52 of 57

Blended percentile across 9 extracted metrics.

Pricing

50th pct

Leverage

26th pct

Cost

25th pct

Ongoing

0th pct

Structure

50th pct

Percentile profile

Pricing

Avg. distribution (term)Min 0.00%Med 5.08%Max 7.00%4.75%22nd

Syndicated cap rateMin 4.02%Med 5.63%Max 9.74%5.02%33rd

Year 1 distributionMin 0.00%Med 4.51%Max 6.75%4.75%63rd

Price per unitMin $24KMed $293KMax $3290K$163K83rd

Leverage

DSCRMin 1.00xMed 2.00xMax 3.38x1.64x18th

Interest rateMin 3.91%Med 5.11%Max 9.11%5.27%34th

Cost

Total upfront loadMin 1.96%Med 5.97%Max 12.05%10.50%13th

ReservesMin 0.11%Med 5.54%Max 18.84%3.04%36th

Ongoing

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

Year 1 distribution

63rd pct

4.75%median 4.51%

Min 0.00%Med 4.51%Max 6.75%

DSCR

18th pct

1.64xmedian 2.00x

Min 1.00xMed 2.00xMax 3.38x

Interest rate

34th pct

5.27%median 5.11%

Min 3.91%Med 5.11%Max 9.11%

Total upfront load

13th 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
Syndicated cap ratePricing	5.02%	5.63%	4.84% – 5.83%	−0.61%	33rd
Price per unitPricing	$163K	$293K	$184K – $434K	−$131K	83rd
Year 1 distributionPricing	4.75%	4.51%	4.40% – 5.00%	+0.24%	63rd
Avg. distribution (term)Pricing	4.75%	5.08%	4.77% – 5.32%	−0.33%	22nd
DSCRLeverage	1.64x	2.00x	1.79x – 2.12x	−0.36x	18th
Interest rateLeverage	5.27%	5.11%	5.00% – 5.48%	+0.16%	34th
Total upfront loadCost	10.50%	5.97%	4.89% – 9.50%	+4.53%	13th
ReservesCost	3.04%	5.54%	1.67% – 9.03%	−2.50%	36th
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
Blue Door Property II DST	Unknown sponsor	6.11%	0.00%	—	10.50%	—	98%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	97%
BR Diversified Industrial Portfolio 8 DST	BIGR Exchange 8 TRS, LLC	6.32%	—	—	9.45%	—	95%
NREX II DST	Nuveen Real Estate Exchange LLC	—	0.00%	—	—	20 yrs	95%
Reno City Center LLC TIC	MADISON CAPITAL GROUP	5.50%	0.00%	—	11.00%	6 yrs	94%
FG Communities Candler Indian Creek DST	FG Communities	5.00%	0.00%	—	10.83%	10 yrs	93%
Sealy Industrial DST	Sealy	—	—	—	9.50%	11 yrs	93%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	93%

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.