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
NexPoint Life Sciences III DST is a Delaware Statutory Trust offering sponsored by NexPoint Real Estate Advisors IV, L.P. The trust holds a 137,811 square foot medical device research and development facility located at 11200 Hudson Road in Woodbury, Minnesota. The property was acquired for $57,750,000, relative to an appraised value of $59,000,000, and is capitalized with $30,661,253 in offering equity. Debt financing consists of a $31,300,000 fixed-rate loan at 4.5% interest across a 9-year term, establishing an offering LTV of 50.52%. Projected investor cash flow reflects a Year 1 income rate of 4.18% and an average income rate of 4.06% over the full term. Operations are supported by master tenant income of $3,467,104, yielding an acquisition and syndicated cap rate of 5.83%.
0.0% of the offering is closed
$30,661,253 still available
$30,661,253
$0
0.0% of offering$0
Pending subscription$30,661,253
Open for subscriptionThe syndication seeks $30,661,253 in equity against a total offering price of $61,961,253. Front-end load includes an $843,184 dealer fee, a $413,927 BD due diligence allowance, and a $413,927 BD marketing allowance. Projected cash distributions commence at 4.18% in Year 1 and average 4.06% across the hold period.
Sector
Medical device research and development facility
Investment Category
DST
Projected First Year Cashflow
4.18%
Avg. 4.06% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$61,961,253
$450 per unit
Offering Debt
—
4.5% · Loan Term 9 Years
LTV
50.52%
On acquisition price
Units / Tenants
137,811
11200 Hudson Road, Woodbury, Minnesota 55129
Property Age
—
The offering encompasses a 137,811 square foot medical device research and development facility located in Woodbury, Minnesota. Acquisition was executed at $57,750,000, below the October 23, 2023 appraised value of $59,000,000. Capitalization includes $31,300,000 in fixed-rate debt and $30,661,253 in syndicated equity.
Fixed Long-Term Debt
4.5% / 9 YearsDebt obligations are locked at a fixed 4.5% interest rate for a 9-year term, removing interest rate volatility.
Substantial Sponsor Scale
$14,500,000,000 AUMNexPoint Real Estate Advisors IV, L.P. manages $14,500,000,000 in institutional real estate assets.
Discount to Appraised Value
$57,750,000 vs $59,000,000The property was acquired at $57,750,000, reflecting a discount relative to the $59,000,000 appraised value.
Narrow Debt Service Margin
1.03x DSCRReported DSCR is 1.03x based on master tenant income of $3,467,104, leaving minimal operational margin.
Upfront Syndication Load
9.35%Total upfront fees and expenses equal $2,866,827, representing 9.35% of total acquisition cost.
Offering Price Premium
95.37%The appraised value of $59,000,000 represents 95.37% of the aggregate offering price of $61,961,253.
The acquisition price of $57,750,000 provides entry below the appraised value of $59,000,000. Financing is structured favorably with a 9-year fixed interest rate of 4.5%, eliminating floating-rate exposure. Furthermore, the sponsor brings institutional execution scale with $14,500,000,000 in total assets under management.
Offering Equity
49.5% of offering
Offering Debt
50.52% LTV on acq.
Acquisition Cost
95.4% of offering
Offering Expenses
4.6% of offering
Total Offering
$61.96M
Equity $30.66M + debt $31.30M
Acquisition Cost
$59.09M
95.4% of offering to the property
Total Fees & Expenses
$2.87M
4.63% of offering
Reserves
—
— of offering
Sources comprise $30,661,253 in offering equity and $31,300,000 in loan proceeds, totaling $61,961,253. Uses include the $57,750,000 acquisition price, $2,866,827 in total offering expenses and upfront fees, $187,311 in finance expenses, and $12,420 in title and recording costs. Total acquisition cost including reserves is $59,094,426.
Tone reflects relative strength, not a rating
Debt Coverage
Tight debt service marginThe 1.03x DSCR on $3,467,104 master tenant income provides minimal cushion against cash flow interruption.
Financing Risk
Fixed long-term maturityThe $31,300,000 debt facility is fully fixed at 4.5% across a 9-year term, eliminating base rate volatility.
Front-End Load
Syndication expensesUpfront fees and expenses total $2,866,827, comprising 9.35% of the $59,094,426 total acquisition cost.
Offering Premium
Valuation versus raiseThe $59,000,000 appraised value represents 95.37% of the $61,961,253 syndicated offering price.
The offering operates with a low initial debt service coverage ratio of 1.03x, providing limited cushion against operational variances. Total front-end fees of $2,866,827 represent 9.35% of acquisition costs, creating a syndication premium over the $59,000,000 appraised value. Additionally, the investment is concentrated in a single specialized research and development facility.
Syndicated Cap Rate
5.83%
NOI ÷ offering price
Upfront Load on Offering
4.63%
Total fees ÷ offering price
Load on Equity
9.35%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
107.3%
Offering price ÷ acquisition price
Price per Unit
$450
Offering price ÷ 137,811 units
Distribution rates as extracted from the offering materials.
Total front-end fees and expenses equal $2,866,827, representing 9.35% of total acquisition costs. The property operates with a narrow debt service coverage ratio (DSCR) of 1.03x based on master tenant income of $3,467,104. The appraised value represents 95.37% of the total offering price of $61,961,253.
Sponsor
NexPoint Real Estate Advisors IV, L.P. is an institutional sponsor managing $14,500,000,000 in assets under management, with specialized expertise in life science and medical device research facilities.
—
Properties owned or managed
$14,500,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
medical device research and development facility
Stated strategy
NexPoint Real Estate Advisors IV, L.P. serves as the offering sponsor, managing $14,500,000,000 in aggregate assets under management. The sponsor maintains a sector focus in medical device research and development properties. Ongoing asset management fees are structured between 0.0% and 0.30% annually.
Extensive platform scale with $14,500,000,000 in assets under management.
Dedicated focus in the medical device research and development sector.
Annual asset management fee capped between 0.0% and 0.30%.
Front-end fees and syndication expenses total $2,866,827.
Detailed track record for specific life sciences DST exits is not disclosed in the provided dataset.
The property
$57,750,000 acquisition price
NexPoint Life Sciences III DST
medical device research and development facility
11200 Hudson Road, Woodbury, Minnesota 55129
11200 Hudson Road, Woodbury, Minnesota 55129
$57,750,000
100.0% of portfolio
The $45,900,000 fixed-rate mortgage carries a 7.12% interest rate, a 50.4% LTV, a 1.98x DSCR, and defeasance-based prepayment provisions.
$31,300,000
Loan Term 9 Years
4.5%
Fixed
—
1.03x
50.52%
50.52%
The property was acquired for $76,500,000 against a total offering price of $91,092,820, reflecting closing costs, fees, and reserve funding.
0 bps of spread between acquisition and syndicated cap rate.
$57,750,000
$61,961,253
An appraisal dated October 23, 2023 reflects an "as is" market value for the Property of $59,000,000, but no acquisition cap rate or going-in yield is stated in the excerpts provided.
—
—
—
5.83%
5.83%
—
95.37%
—
Gross proceeds fund the $76,500,000 acquisition, $4,878,680 in offering fees, $1,530,000 in financing expenses, and $5,248,509 in reserves.
Total Fees & Expenses
$2,866,827
% of equity
9.35%
% of offering
4.63%
Total fees & expenses
$2.87M
4.63% of offering
Offering expenses
$2.87M
4.63% of offering
Reserves held
—
— of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $12,420 | 0.04% | 0.02% |
| Finance Expenses | $187,311 | 0.61% | 0.30% |
| Total Acquisition Cost | $59,094,426 | 192.73% | 95.37% |
| Total Acq. Cost (Reserves) | $59,094,426 | 192.73% | 95.37% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $843,184 | 2.75% | 1.36% |
| BD Due Diligence Allowance | $413,927 | 1.35% | 0.67% |
| BD Marketing Allowance | $413,927 | 1.35% | 0.67% |
| O&O Expenses | $183,968 | 0.60% | 0.30% |
| Total Offering Expenses | $2,866,827 | 9.35% | 4.63% |
| Total Fees / Expenses | $2,866,827 | 9.35% | 4.63% |
| Total Upfront Fees (Reserves) | $2,866,827 | 9.35% | 4.63% |
Sponsor compensation includes a $2,295,000 acquisition fee, $100,000 annual asset management fee, up to 6.0% selling commissions, and a [4.5]% disposition fee.
$843,184
2.75%
$2,866,827
4.96%
Investor income is projected at 5.13% in Year 1 and 5.53% on average, backed by scheduled master lease base rent and a 6.93% syndicated cap rate.
0.0%-0.30%
$3,467,104
Standing
43 of 57
Blended percentile across 13 extracted metrics.
Pricing
39th pct
Leverage
32nd pct
Cost
81st pct
Ongoing
100th pct
Structure
43rd 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
70th pct5.83%median 5.50%
Year 1 distribution
5th pct4.18%median 4.60%
Acquisition LTV
21st pct50.52%median 46.50%
DSCR
4th pct1.03xmedian 2.00x
Interest rate
94th pct4.50%median 5.13%
Total upfront load
81st pct4.63%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 5.83% | 5.50% | 5.00% – 6.00% | +0.33% | 70th |
| Syndicated cap ratePricing | 5.83% | 5.49% | 4.84% – 5.82% | +0.34% | 76th |
| Year 1 distributionPricing | 4.18% | 4.60% | 4.40% – 5.00% | −0.42% | 5th |
| Avg. distribution (term)Pricing | 4.06% | 5.08% | 4.77% – 5.32% | −1.02% | 4th |
| Acquisition LTVLeverage | 50.52% | 46.50% | 18.89% – 49.80% | +4.02% | 21st |
| Offering LTVLeverage | 50.52% | 46.09% | 2.67% – 49.53% | +4.43% | 16th |
| DSCRLeverage | 1.03x | 2.00x | 1.79x – 2.12x | −0.97x | 4th |
| Interest rateLeverage | 4.50% | 5.13% | 5.01% – 5.48% | −0.63% | 94th |
| Loan termLeverage | 9 yrs | 10 yrs | 9 yrs – 10.5 yrs | −1 yrs | 26th |
| Total upfront loadCost | 4.63% | 7.50% | 5.00% – 9.50% | −2.87% | 81st |
| Asset management feeOngoing | 0.00% | 0.35% | 0.20% – 0.47% | −0.35% | 100th |
| Equity share of capitalStructure | 49.48% | 100.00% | 52.93% – 100.00% | −50.52% | 11th |
| Hold periodStructure | 9 yrs | 10 yrs | 9 yrs – 10.5 yrs | −1 yrs | 74th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 96% |
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 94% |
| Griffin Capital Tulsa BTR DST | Griffin Capital Residential Partners Institutional Property Exchange, LLC | 5.77% | 46.50% | — | 5.00% | 10 yrs | 94% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 90% |
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 89% |
| Net-Leased Portfolio 76 DST | ExchangeRight Real Estate, LLC | — | 43.32% | 1.35x | 4.08% | 14.7 yrs | 88% |
| BREX Net Lease Data Center I DST | Brookfield Real Estate Exchange LLC | — | — | — | 4.51% | 2 yrs | 87% |
| FREX DB SERIES I DST | Fortress Real Estate Exchange LLC | — | 47.10% | — | 5.55% | 11 yrs | 87% |
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.