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
NewStar 17 Sweetwater Springs DST is a $39,408,522 Delaware Statutory Trust offering sponsored by Newstar Exchange. The trust is secured by a 95-unit newly constructed Class A townhome community located in Gwinnett County within the Atlanta, Georgia market. The property was acquired for $33,065,000, capitalized through $21,808,522 in offering equity and $17,600,000 in fixed-rate debt, representing a 45% loan-to-value ratio. Financing is structured on a 10-year term at a 5.1% fixed interest rate with a debt service coverage ratio of 2.53x. Distribution yields are projected at 4.4% in Year 1 and average 4.75% over the full holding term. Total front-end fees and expenses equal $2,234,533, which reflects a 6% load on the offering price and 10.25% of the acquisition cost.
0.0% of the offering is closed
$21,808,522 still available
$21,808,522
$0
0.0% of offering$0
Pending subscription$21,808,522
Open for subscriptionNewstar Exchange is raising $21,808,522 in equity from accredited investors alongside $17,600,000 in senior debt. Upfront syndication costs include selling commissions of up to 6.0% of gross offering proceeds, a $654,256 dealer fee, and $271,766 in O&O expenses. Total offering expenses and fees amount to $2,234,533.
Sector
Multifamily
Investment Category
DST
Projected First Year Cashflow
4.4%
Avg. 4.75% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$39,408,522
$414,827 per unit
Offering Debt
$17,600,000
5.1% · 10-Year Loan Term
LTV
45%
On acquisition price
Units / Tenants
95
Atlanta, Georgia | Gwinnett County
Property Age
The property consists of newly constructed Class A townhome apartments, indicating that the main improvements are new construction completed shortly before the 2026 offering.
The offering comprises a 95-unit newly constructed townhome community in Gwinnett County (Atlanta, GA) acquired for $33,065,000 at a 4.76% cap rate. Total offering capitalization is $39,408,522, funded by $21,808,522 in equity and $17,600,000 in 10-year fixed debt at 5.1%. Initial Year 1 cash flow is projected at 4.4%, with an average income of 4.75% across the full investment term.
Moderate Leverage & Strong Debt Coverage
45% LTV / 2.53x DSCRThe debt structure maintains a conservative 45% loan-to-value ratio and a robust 2.53x debt service coverage ratio.
Long-Term Fixed Financing
10-Year Loan Term at 5.1%The loan features a fixed 5.1% interest rate for 10 years, mitigating interest rate and debt rollover risk.
Newly Constructed Asset Vintage
95 Class A Townhome UnitsThe property consists of newly constructed Class A townhome apartments completed prior to the 2026 offering.
Upfront Syndication Load
10.25% Upfront Fee / Acq. CostTotal front-end fees and expenses equal $2,234,533, representing a 6% load on offering price and 10.25% of acquisition cost.
Initial Cash Distribution Yield
4.4% Yr. 1 DistributionFirst-year investor distribution begins at 4.4%, below the 5.1% loan interest rate, before averaging 4.75% over the full term.
Sponsor Portfolio Scale
5 DST Properties / $5,000,000 AUMThe sponsor's track record comprises 5 DST properties acquired between 2022 and 2026 with $5,000,000 in reported AUM.
The investment features a low leverage structure with a 45% offering LTV and strong coverage indicated by a 2.53x DSCR. Debt is secured under a 10-year fixed-rate term at 5.1%, eliminating near-term interest rate risk. Additionally, the asset consists of new Class A townhome construction, reducing near-term structural capital expenditure needs.
Offering Equity
55.3% of offering
Offering Debt
45% LTV on acq.
Acquisition Cost
87.1% of offering
Offering Expenses
5.7% of offering
Reserves
0.5% of offering
Unallocated / other uses
6.7% of offering
Total Offering
$39.41M
Equity $21.81M + debt $17.60M
Acquisition Cost
$34.33M
87.1% of offering to the property
Total Fees & Expenses
$2.23M
6.00% of offering
Reserves
$215K
0.5% of offering
Sources include $21,808,522 in DST equity and $17,600,000 in loan proceeds for a total raise of $39,408,522. Uses comprise the $33,065,000 property acquisition price, $2,234,533 in front-end fees and offering expenses, $995,000 in carry costs, and $215,000 in master tenant reserves.
Tone reflects relative strength, not a rating
Debt & Leverage
Conservative45% LTV with fixed 5.1% interest for 10 years and 2.53x DSCR provides significant structural debt protection.
Syndication Fees
ElevatedTotal upfront fees of $2,234,533 represent a 6% load on offering proceeds and 10.25% of the purchase price.
Initial Yield
ModerateYear 1 yield starts at 4.4% before stepping up to a projected 4.75% average over the holding term.
Sponsor Scale
EmergingTrack record includes 5 DST assets acquired since 2022 with $5,000,000 reported assets under management.
Key underwriting considerations include an upfront fee burden of 10.25% of acquisition cost and single-asset concentration in a 95-unit townhome property. The sponsor's track record is relatively recent, comprising 5 DST assets acquired between 2022 and 2026. Furthermore, the starting cash-on-cash yield of 4.4% is lower than the 5.1% debt interest rate.
Syndicated Cap Rate
4.76%
NOI ÷ offering price
Upfront Load on Offering
6.00%
Total fees ÷ offering price
Load on Equity
10.25%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
119.2%
Offering price ÷ acquisition price
Price per Unit
$414,827
Offering price ÷ 95 units
Distribution rates as extracted from the offering materials.
The total offering price of $39,408,522 builds upon the $33,065,000 acquisition price with $2,234,533 in upfront fees and expenses, $995,000 in carry costs, and $215,000 in master tenant reserves. Upfront fees represent 10.25% of the purchase price and a 6% load on offering proceeds. Both the acquisition cap rate and syndicated cap rate are reported at 4.76%.
Sponsor
Newstar Exchange is a multifamily DST sponsor with 5 DST properties acquired between 2022 and 2026, holding $5,000,000 in reported assets under management.
• The sponsor’s DST track record comprises 5 DST properties in its portfolio as of March 31, 2026.
Properties owned or managed
$5,000,000
Across all programs
5
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Multifamily
Stated strategy
Newstar Exchange is a real estate sponsor focused on the multifamily sector with $5,000,000 in reported assets under management. Through March 31, 2026, the sponsor's track record includes five DST properties acquired between 2022 and 2026 with distribution performance tracked for each program.
Active DST track record comprising 5 properties acquired from 2022 to 2026
Reported distribution performance tracked across all historical DST programs
Clear strategic sector focus on multifamily assets
Reported assets under management is modest at $5,000,000
Track record is limited to assets acquired since 2022
Limited historical disposition track record disclosed
The property
$33,065,000 acquisition price
NewStar 17 Sweetwater Springs DST
Townhomes
The property consists of newly constructed Class A townhome apartments, indicating that the main improvements are new construction completed shortly before the 2026 offering.
Atlanta, Georgia | Gwinnett County
Atlanta, Georgia | Gwinnett County
$33,065,000
100.0% of portfolio
The offering utilizes virtually no third-party debt, presenting an offering LTV of 0.28%. This unleveraged posture removes traditional lender covenants, interest rate volatility, and refinancing risks.
$17,600,000
10-Year Loan Term
5.1%
Fixed
—
2.53x
45%
45%
The total acquisition cost is $82,270,000 ($82,805,000 inclusive of reserves) across 6 properties in 5 states. The purchase price reflects a 6.0% acquisition capitalization rate based on $4,890,945 of master tenant income.
0 bps of spread between acquisition and syndicated cap rate.
$33,065,000
$39,408,522
—
$2,234,533
—
6%
4.76%
4.76%
—
—
—
The $89,517,000 in equity proceeds is allocated to property acquisition ($82,270,000), total offering and front-end expenses ($6,712,000), and master tenant reserves ($275,000).
Total Fees & Expenses
$2,234,533
% of equity
10.25%
% of offering
6.00%
Total fees & expenses
$2.23M
6.00% of offering
Offering expenses
$2.23M
5.67% of offering
Reserves held
$215K
0.55% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $578,638 | 2.65% | 1.47% |
| Reserves (Master Tenant) | $215,000 | 0.99% | 0.55% |
| Finance Expenses | $1,031 | 0.00% | 0.00% |
| Total Acquisition Cost | $34,329,352 | 157.41% | 87.11% |
| Total Acq. Cost (Reserves) | $37,173,989 | 170.46% | 94.33% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,364,511 | 10.84% | 6.00% |
| Dealer Fee | $654,256 | 3.00% | 1.66% |
| O&O Expenses | $271,766 | 1.25% | 0.69% |
| Third Party DD | $71,950 | 0.33% | 0.18% |
| Carry Costs | $995,000 | 4.56% | 2.52% |
| Total Offering Expenses | $2,234,533 | 10.25% | 5.67% |
| Total Fees / Expenses | $2,234,533 | 10.25% | 5.67% |
Front-end load includes a $1,342,000 dealer fee, $895,000 in organizational and offering expenses, and other closing costs totaling $6,712,000. The sponsor also collects an ongoing annual asset management fee of $447,585.
$578,638
2.65%
$100,000
0.46%
$654,256
3.00%
$2,234,533
6.76%
Master tenant income is projected at $4,890,945, supporting investor distributions starting at 4.6% in Year 1. Master tenant reserves are funded upfront at $275,000 (0.31% of offering equity).
($35,000)
$2,336,000
Disposition
fee conditioned on sale > offering price
Standing
48 of 57
Blended percentile across 16 extracted metrics.
Pricing
21st pct
Leverage
56th pct
Cost
46th pct
Ongoing
0th pct
Structure
53rd 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
12th pct4.76%median 5.50%
Year 1 distribution
23rd pct4.40%median 4.60%
Acquisition LTV
56th pct45.00%median 46.93%
DSCR
89th pct2.53xmedian 1.99x
Interest rate
53rd pct5.10%median 5.13%
Total upfront load
55th pct5.67%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 4.76% | 5.50% | 5.07% – 6.00% | −0.74% | 12th |
| Syndicated cap ratePricing | 4.76% | 5.63% | 5.00% – 5.83% | −0.87% | 19th |
| Price per unitPricing | $415K | $284K | $180K – $434K | +$131K | 28th |
| Year 1 distributionPricing | 4.40% | 4.60% | 4.40% – 5.00% | −0.20% | 23rd |
| Avg. distribution (term)Pricing | 4.75% | 5.08% | 4.77% – 5.32% | −0.33% | 22nd |
| Acquisition LTVLeverage | 45.00% | 46.93% | 18.89% – 50.20% | −1.93% | 56th |
| Offering LTVLeverage | 45.00% | 46.17% | 2.67% – 49.80% | −1.17% | 53rd |
| DSCRLeverage | 2.53x | 1.99x | 1.73x – 2.10x | +0.54x | 89th |
| Interest rateLeverage | 5.10% | 5.13% | 5.00% – 5.48% | −0.03% | 53rd |
| Loan termLeverage | 10 yrs | 10 yrs | 8.5 yrs – 10.5 yrs | 0 yrs | 29th |
| Total upfront loadCost | 5.67% | 7.50% | 4.89% – 9.50% | −1.83% | 55th |
| Selling commissionCost | 6.00% | 6.00% | 5.00% – 6.00% | 0.00% | 63rd |
| Acquisition feeCost | 2.65% | 2.52% | 1.74% – 3.77% | +0.14% | 48th |
| ReservesCost | 0.99% | 5.54% | 1.76% – 9.03% | −4.56% | 17th |
| Equity share of capitalStructure | 55.34% | 100.00% | 52.74% – 100.00% | −44.66% | 35th |
| Hold periodStructure | 10 yrs | 10 yrs | 8.5 yrs – 10.5 yrs | 0 yrs | 71st |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| NexPoint Oasis DST | NexPoint Real Estate Advisors IV, L.P. | 4.84% | 53.05% | 1.81x | 4.39% | 10 yrs | 88% |
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 88% |
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 88% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 86% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 86% |
| 307 Stockton Fee DST | Mercer Street | 4.61% | 50.00% | 2.10x | 5.00% | 1 yrs | 85% |
| BREX Net Lease Data Center I DST | Brookfield Real Estate Exchange LLC | — | — | — | 4.51% | 2 yrs | 85% |
| CS1031 Parkland Apartments DST | Capital Square | 5.36% | 40.99% | 1.90x | 5.90% | 10 yrs | 84% |
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.