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 Gainesville FL BTR DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

MCG Gainesville FL BTR DST is a single-asset Delaware Statutory Trust offering sponsored by Madison Capital Group. The trust is raising $31,709,210 in equity to acquire a 172-unit Class A+ detached cottage-style build-to-rent housing community located in Gainesville, Florida, built in 2023. The property acquisition price is $51,025,000, with a total acquisition cost including reserves of $56,571,289. Financing consists of a $28,033,000 fixed-rate loan with an interest rate of 5.32% and a term of approximately 10 years, yielding a debt service coverage ratio (DSCR) of 1.74x. The offering projects a Year 1 income distribution of 4.5% and a full-term average income distribution of 4.5%. Total front-end fees and upfront load equal $3,170,921, representing 10% of the gross offering price.

Capital raise

0.0% of the offering is closed

$317,092 still available

Closed$0 Reservations$0 Available$317,092

$0 of $317,092 placed

Total offering equity

$317,092

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$317,092

Open for subscription

The offering seeks $31,709,210 in total equity. Upfront fees and expenses total $3,170,921, reflecting a 10% load that covers selling commissions (up to 6.0%), broker-dealer due diligence ($317,092), dealer fees ($317,092), wholesaling fees ($317,092), and O&O expenses ($317,092).

Offering terms

Sector

Build-To-Rent (BTR)

Investment Category

DST

Projected First Year Cashflow

4.5%

Avg. 4.5% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$31,709,210

$184,356 per unit

Offering Debt

—

5.32% · approximately 10 years

LTV

—

On acquisition price

Units / Tenants

172

7000 SW 91 Street, Gainesville, Florida 32608

Property Age

The property is a brand new Class A+ detached cottage-style housing community that was built in 2023.

The offering features a 2023-construction, 172-unit build-to-rent residential community in Gainesville, Florida, acquired for $51,025,000. Debt financing comprises a $28,033,000 fixed-rate loan at 5.32% across a 10-year term with a 1.74x DSCR. Projected investor distribution is 4.5% in Year 1 and averages 4.5% over the full holding period.

Strengths & considerations

Key strengths

Long-Term Fixed Debt Structure
5.32% Interest Rate / 10-Year Term
The $28,033,000 loan is fixed at 5.32% over an approximate 10-year term, eliminating interest rate volatility throughout the projected hold.
Coverage Metrics
1.74x DSCR
The property generates sufficient cash flow to achieve a 1.74x debt service coverage ratio under its master lease structure.
Asset Quality & Vintage
2023 Construction / 172 Units
The property is a brand new Class A+ detached cottage-style build-to-rent community, minimizing near-term structural capital expenditure requirements.

Key considerations

Upfront Fee Load
10.0% ($3,170,921)
Front-end load reduces net invested capital, requiring significant operational appreciation or debt paydown to recover syndication costs.
Distribution Rate Spread
4.5% Initial Yield vs. 5.32% Debt
The initial 4.5% projected investor yield is lower than the debt coupon of 5.32%, indicating lower initial equity cash yields relative to leverage costs.
Undisclosed Sponsor Metrics
Not Disclosed
Specific DST track record, total portfolio property counts, employee headcount, and acquisition cap rate are omitted from the provided disclosures.

The asset is a newly constructed 2023 Class A+ build-to-rent community secured with long-term, fixed-rate financing at 5.32% for approximately 10 years. Debt service coverage is structured at a healthy 1.74x. Additionally, the transaction includes funded capitalization reserves across lender, improvement, and master tenant allocations.

Sources, uses & fee assessment

Capital Sources

Offering Equity
1.0% of offering
$317K
Offering Debt
— LTV on acq.
$28.03M

Where the Capital Goes

Acquisition Cost
160.9% of offering
$51.02M
Reserves
6.4% of offering
$2.04M

Total Offering

$31.71M

Equity $317K + debt $28.03M

Acquisition Cost

$51.02M

160.9% of offering to the property

Total Fees & Expenses

—

10.00% of offering

Reserves

$2.04M

6.4% of offering

Sources comprise $31,709,210 in equity proceeds and $28,033,000 in loan proceeds. Uses include the $51,025,000 property acquisition, $3,170,921 in front-end load and organizational fees, $1,020,500 acquisition fee, $515,611 in financing expenses, $349,020 in title and recording costs, and multiple reserve allocations totaling over $2,040,000.

Risk read

Tone reflects relative strength, not a rating

Leverage & Refinancing

Stable

Debt is fixed at 5.32% for approximately 10 years with a 1.74x DSCR on a $28,033,000 loan balance.

Front-End Load

Elevated

Total upfront syndication fees equal $3,170,921, or 10.0% of the $31,709,210 offering equity.

Cash Flow Yield

Moderate

Projected investor income is 4.5% in Year 1 and averages 4.5% over the hold, trailing the 5.32% interest rate.

Sponsor Reporting

Information Gap

Sponsor lists $5,000,000 AUM, but DST track record, portfolio size, and team size are not disclosed.

Key underwriting considerations include a 10% upfront syndication load ($3,170,921), an initial projected yield of 4.5% which sits below the 5.32% borrowing cost, and limited disclosed sponsor historical data regarding portfolio size, headcount, and prior DST programs. Appraised value and acquisition cap rate are not disclosed.

Calculated underwriting metrics

Syndicated Cap Rate

5.15%

NOI ÷ offering price

Upfront Load on Offering

10.00%

Total fees ÷ offering price

Load on Equity

—

Total fees ÷ offering equity

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

62.1%

Offering price ÷ acquisition price

Price per Unit

$184,356

Offering price ÷ 172 units

Projected distribution rate

Avg 4.50%

Yr 1Term avg.

Yr 1 4.50%Term avg. 4.50%

Distribution rates as extracted from the offering materials.

Total capitalization of $56,571,289 encompasses the $51,025,000 purchase price, $3,170,921 in front-end syndication fees (10.0% load), $1,020,500 in acquisition fees, and $2,040,686 in aggregate reserves. The syndicated capitalization rate is calculated at 5.15% relative to the total capital structure.

Sponsor

Madison Capital Group

Madison Capital Group serves as the sponsor, reporting $5,000,000 in assets under management. Specific track record details regarding prior DST offerings, staffing size, and portfolio unit counts are not provided in the offering documents.

Madison Capital GroupBTR Sector Focus$5M Disclosed AUM

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

Build-To-Rent (BTR)

Stated strategy

View Sponsor Dossier

The sponsor for the offering is Madison Capital Group, which reports $5,000,000 in assets under management. Historical DST track record, employee headcount, and total property portfolio counts are not disclosed in the offering documents.

Sponsor strengths

Focus on institutional build-to-rent residential development.
Fully structured master lease with dedicated tenant reserves.

Sponsor concerns

DST-specific experience and historical performance not disclosed.
Employee count and broader portfolio size omitted.

The Property

The property

172-Unit Class A+ Build-To-Rent Asset in Gainesville, FL

$51,025,000 acquisition price

MCG Gainesville FL BTR DST

single-family built-for-rent development

The property is a brand new Class A+ detached cottage-style housing community that was built in 2023.

7000 SW 91 Street, Gainesville, Florida 32608

172 unitssingle-family built-for-rent development

$51,025,000

100.0% of portfolio

Seller: —
Property manager: Madison Capital Group

Financing Terms

The Trust has secured an 8-year loan with a fixed interest rate of 5.6%. Prepayment is prohibited during the first 12 months and requires yield maintenance thereafter until near loan maturity.

Leverage profile

Loan amount$28.03M88.4% of offering · — LTV

Offering equity$3.68M11.6% of offering

Loan Amount

$28,033,000

Term

Approximately 10 years

Interest Rate

5.32%

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

1.74x

Acquisition LTV

—

Offering LTV

—

Strengths

Fixed interest rate of 5.32% over 10 years.
1.74x DSCR provides operational cushion.

Concerns

Financing expenses total $515,611.
Lender requires $678,546 in dedicated reserves.

Transaction Metrics

The total acquisition cost is $30,369,062.5 based on a purchase price of $28,261,384, reflecting an acquisition cap rate of 5.5% and a syndicated cap rate of 5.49%.

Valuation ladder

Acquisition price$51.02M

Offering price$31.71M+-37.9%

Cap rate spread & load

Syndicated cap rate5.15%

Upfront load on offering10.00%

Acquisition Price

$51,025,000

Offering Price

$31,709,210

Appraised Value

—

Upfront Load

$3,170,921

Load on Equity

—

Load on Offering Price

10%

Acquisition Cap Rate

—

Syndicated Cap Rate

5.15%

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Brand new construction limits initial capital maintenance.
Syndicated cap rate calculated at 5.15%.

Concerns

Total acquisition cost expands to $56,571,289 including reserves.
Acquisition cap rate is not disclosed.

Use of Proceeds

Gross offering equity of $12,625,000 is used alongside debt to fund the property purchase, $1,230,937.5 in front-end expenses, $900,000 in master tenant reserves, and $53,036 in title and recording costs.

Total Fees & Expenses

—

% of equity

—

% of offering

10.00%

Where the offering proceeds go

Acquisition Cost$51.02M160.9%

Reserves$2.04M6.4%

Total fees & expenses

—

10.00% of offering

Offering expenses

—

— of offering

Reserves held

$2.04M

6.44% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Acquisition Fee	$1,020,500	321.83%	3.22%
Title & Recording Costs	$349,020	110.07%	1.10%
Reserves (Loan Proceeds)	$62,140	19.60%	0.20%
Reserves (Lender Required)	$678,546	213.99%	2.14%
Reserves (Master Tenant)	$300,000	94.61%	0.95%
Reserves (Improvements)	$1,000,000	315.37%	3.15%
Finance Expenses	$515,611	162.61%	1.63%
Total Acquisition Cost	$51,025,000	16091.54%	160.92%
Total Acq. Cost (Reserves)	$56,571,289	17840.65%	178.41%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$1,902,553	600.00%	6.00%
Dealer Fee	$317,092	100.00%	1.00%
Wholesaling Fee	$317,092	100.00%	1.00%
BD Due Diligence Allowance	$317,092	100.00%	1.00%
O&O Expenses	$317,092	100.00%	1.00%

Strengths

Fully funded reserve pool of $2,040,686 allocated.
Includes $1,000,000 dedicated to improvement reserves.

Concerns

10.0% of equity proceeds allocated to front-end fees.
Upfront load totals $3,170,921.

Sponsor Compensation

Sponsor and affiliate compensation includes a $151,000 annual asset management fee, a 3.0% property management fee on gross monthly revenue, and a 3% disposition fee.

Front-end fee composition

Acquisition Fee$1.02M321.83%

Dealer Fee$0.32M100.00%

Wholesaling Fee$0.32M100.00%

Total front-end sponsor compensation$3,170,921 6.21% of acq. cost

Acquisition Fee

$1,020,500

321.83%

Dealer Fee

$317,092

100.00%

Wholesaling Fee

$317,092

100.00%

Total Front-end Fees

$3,170,921

6.21%

Strengths

Disclosed fee breakdown across all selling and O&O categories.
Selling commissions capped within the 10.0% aggregate load limit.

Concerns

Acquisition fee of $1,020,500 payable to sponsor.
High upfront frictional cost burden of $3,170,921.

Operating & Disposition Fees

The master tenant structure projects master tenant income of $924,000, supported by an upfront master tenant reserve of $900,000.

Ongoing fee rates

Master Tenant Income

$1,427,931

Strengths

Master tenant income structured at $1,427,931.
Master tenant reserve funded at $300,000.

Concerns

Distribution rate flat at 4.5% for Year 1 and full-term average.
Yield trails borrowing rate of 5.32%.

Comparative Analysis

39Composite

Standing

52 of 57

Blended percentile across 9 extracted metrics.

Pricing

42nd pct

Leverage

27th pct

Cost

25th pct

Ongoing

0th pct

Structure

71st pct

Percentile profile

Pricing

Avg. distribution (term)Min 0.00%Med 5.08%Max 7.00%4.50%13th

Year 1 distributionMin 0.00%Med 4.60%Max 6.75%4.50%40th

Syndicated cap rateMin 4.02%Med 5.63%Max 9.74%5.15%43rd

Price per unitMin $24KMed $293KMax $3290K$184K73rd

Leverage

DSCRMin 1.00xMed 2.00xMax 3.38x1.74x25th

Interest rateMin 3.91%Med 5.11%Max 9.11%5.32%28th

Loan termMin 1 yrsMed 10 yrsMax 36 yrs10 yrs29th

Cost

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

Ongoing

Structure

Hold periodMin 1 yrsMed 10 yrsMax 36 yrs10 yrs71st

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

40th pct

4.50%median 4.60%

Min 0.00%Med 4.60%Max 6.75%

DSCR

25th pct

1.74xmedian 2.00x

Min 1.00xMed 2.00xMax 3.38x

Interest rate

28th pct

5.32%median 5.11%

Min 3.91%Med 5.11%Max 9.11%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Syndicated cap ratePricing	5.15%	5.63%	4.84% – 5.83%	−0.48%	43rd
Price per unitPricing	$184K	$293K	$180K – $434K	−$109K	73rd
Year 1 distributionPricing	4.50%	4.60%	4.40% – 5.00%	−0.10%	40th
Avg. distribution (term)Pricing	4.50%	5.08%	4.77% – 5.32%	−0.58%	13th
DSCRLeverage	1.74x	2.00x	1.77x – 2.12x	−0.26x	25th
Interest rateLeverage	5.32%	5.11%	5.00% – 5.48%	+0.21%	28th
Loan termLeverage	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	29th
Selling commissionCost	6.00%	6.00%	5.00% – 6.00%	+0.00%	25th
Hold periodStructure	10 yrs	10 yrs	8.5 yrs – 10.5 yrs	0 yrs	71st

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
AX Diversified Retail Portfolio DST	Apollo RE Exchange, LLC	6.00%	—	—	7.50%	—	98%
Blue Door Property II DST	Unknown sponsor	6.11%	0.00%	—	10.50%	—	97%
Madison Waterstar Orlando DST	Madison Capital Group	5.30%	40.00%	—	7.55%	—	97%
MCG Arden NC Multifamily DST	Madison Long Shoals Manager, LLC	—	—	1.64x	10.50%	—	97%
Moody Village Towers DST	Moody National Companies	5.07%	37.27%	—	11.67%	—	97%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	97%
Griffin Capital Tulsa BTR DST	Griffin Capital Residential Partners Institutional Property Exchange, LLC	5.77%	46.50%	—	5.00%	10 yrs	96%
BR Amira DST	Bluerock Value Exchange	5.64%	46.17%	1.80x	5.06%	10 yrs	95%

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.