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 Waterford DST is a Delaware Statutory Trust offering sponsored by NexPoint Real Estate Advisors IV, L.P. The offering encompasses Waterford Place, a 240-unit garden-style multifamily apartment community developed in 1997 in Greensboro, North Carolina. Total offering capitalization is $61,060,817, consisting of $31,360,817 in equity and $29,700,000 in debt financing. The property was acquired for $49,500,000 at a 5.28% acquisition cap rate, with total acquisition costs with reserves reaching $58,128,580. Debt financing is secured for a 120-month term at a fixed interest rate of 4.86%, supported by an initial debt service coverage ratio of 2.01x. Initial Year 1 cash flow is projected at 4.51%, with a full-term average projected income of 5.99%.
0.0% of the offering is closed
$31,360,817 still available
$31,360,817
$0
0.0% of offering$0
Pending subscription$31,360,817
Open for subscriptionThe sponsor is raising $31,360,817 in equity for the NexPoint Waterford DST offering. Syndication costs include a $470,412 dealer fee, $392,010 in broker-dealer due diligence allowance, and $392,010 in broker-dealer marketing allowance. Specific selling commission amounts were not disclosed in the offering excerpts.
Sector
MULTIFAMILY
Investment Category
DST
Projected First Year Cashflow
4.51%
Avg. 5.99% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$61,060,817
$254,420 per unit
Offering Debt
$29,700,000
4.86% · 120 Months
LTV
48.6%
On acquisition price
Units / Tenants
240
101 Shore Lake Drive, Greensboro, North Carolina 27455
Property Age
The Waterford Place multifamily apartment property was developed in 1997.
The offering covers a 240-unit multifamily property in Greensboro, North Carolina acquired for $49,500,000. Capitalization includes $31,360,817 in equity and $29,700,000 in fixed-rate debt, resulting in a 48.6% LTV. Year 1 projected distribution is 4.51%, supported by an initial DSCR of 2.01x.
Debt Coverage
2.01x DSCRThe asset generates operating income sufficient to provide a 2.01x coverage ratio over debt service requirements.
Moderate Leverage
48.6% LTVBoth acquisition and offering loan-to-value ratios are moderate at 48.6% on a 10-year fixed rate loan.
Sponsor Platform Scale
$15,970,000,000 AUMThe sponsor platform manages nearly $16 billion in assets across its real estate organization.
Property Vintage
1997 BuildWaterford Place was constructed in 1997, potentially requiring ongoing physical plant maintenance.
Appraisal to Offering Ratio
83.67%The standalone appraised value represents 83.67% of total offering price due to syndication load and reserves.
Upfront Load
9.35%Front-end fees equal 9.35% of the property purchase price, totaling $2,932,236.
The property secures fixed-rate financing of 4.86% over a 120-month term with a strong DSCR of 2.01x. Leverage remains moderate with both acquisition and offering LTV at 48.6%. Additionally, the sponsor platform oversees $15,970,000,000 in total assets under management.
Offering Equity
51.4% of offering
Offering Debt
48.6% LTV on acq.
Acquisition Cost
86.4% of offering
Offering Expenses
4.8% of offering
Reserves
8.8% of offering
Total Offering
$61.06M
Equity $31.36M + debt $29.70M
Acquisition Cost
$52.78M
86.4% of offering to the property
Total Fees & Expenses
$2.93M
4.80% of offering
Reserves
$5.35M
8.8% of offering
Total offering proceeds of $61,060,817 are funded via $31,360,817 in offering equity and $29,700,000 in loan proceeds. Primary uses include the $49,500,000 property acquisition price, $4,552,427 in improvement reserves, and $2,932,236 in total front-end fees. Financing expenses and lender-required reserves total $1,370,291 and $797,576, respectively.
Tone reflects relative strength, not a rating
Asset Vintage
1997 ConstructionThe 240-unit property was built in 1997, requiring sustained capital reinvestment to maintain competitiveness.
Valuation & Load
83.67% Appraisal/OfferingTotal offering capitalization includes $2,932,236 in front-end fees and $4,552,427 in improvement reserves.
Debt Terms
4.86% Fixed RateThe $29,700,000 loan features a 120-month fixed term, 48.6% LTV, and a 2.01x DSCR.
Data Transparency
Undisclosed MetricsSelling commissions, employee headcount, and total portfolio property count are not disclosed.
The property was developed in 1997, which may entail elevated ongoing capital expenditure requirements for aging building components. Front-end fees and expenses total $2,932,236, contributing to an appraisal-to-offering ratio of 83.67%. Additionally, sponsor employee headcount and specific DST track record details are not disclosed.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
4.80%
Total fees ÷ offering price
Load on Equity
9.35%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
123.4%
Offering price ÷ acquisition price
Price per Unit
$254,420
Offering price ÷ 240 units
Distribution rates as extracted from the offering materials.
Total front-end fees of $2,932,236 represent 9.35% of the $49,500,000 acquisition cost. The appraisal-to-offering ratio is 83.67%, reflecting the inclusion of syndication costs and reserves in the total offering capitalization. Full-term average income is projected at 5.99%, compared to the Year 1 rate of 4.51%.
Sponsor
NexPoint Real Estate Advisors IV, L.P. is the offering sponsor, affiliated with NexPoint Securities, Inc., which was formed in November 2013. The sponsor organization oversees $15,970,000,000 in real estate assets under management. Staff size, specific DST program track record, and portfolio property counts are not disclosed.
No data is provided in the excerpts regarding the total number of properties in the sponsor’s portfolio or properties currently owned or managed.
Properties owned or managed
$15,970,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
MULTIFAMILY
Stated strategy
NexPoint Real Estate Advisors IV, L.P. acts as the sponsor, utilizing NexPoint Securities, Inc. (formed in November 2013) as Managing Broker-Dealer. The broader sponsor organization manages $15,970,000,000 in assets under management. Specific staff size and total portfolio property counts were not disclosed in the offering materials.
Platform manages $15,970,000,000 in total assets under management
Managing broker-dealer has operated since November 2013
Dedicated investment focus on the multifamily real estate sector
Staff size and employee numbers are not disclosed
Total property count in sponsor portfolio is not disclosed
Historical DST program track record data is not detailed
The property
$49,500,000 acquisition price
NexPoint Waterford DST
multifamily garden-style apartment development
The Waterford Place multifamily apartment property was developed in 1997.
101 Shore Lake Drive, Greensboro, North Carolina 27455
101 Shore Lake Drive, Greensboro, North Carolina 27455
$49,500,000
100.0% of portfolio
Financing consists of a $32,300,000 fixed-rate loan at 5.81% with a 36-year loan term. Debt service coverage is structured at 1.0x.
$29,700,000
120 Months
4.86%
Fixed
—
2.01x
48.6%
48.6%
The asset was acquired for $37,145,000, whereas total offering capitalization stands at $41,530,000, reflecting front-end fees, closing costs, and reserves.
$49,500,000
$61,060,817
—
—
—
—
5.28%
—
—
83.67%
—
Gross equity proceeds of $9,230,000 fund acquisition equity, reserves of $829,949, and offering expenses totaling $923,000.
Total Fees & Expenses
$2,932,236
% of equity
9.35%
% of offering
4.80%
$8,282,240 including reserves (13.56% of offering)
Total fees & expenses
$2.93M
4.80% of offering
Offering expenses
$2.93M
4.80% of offering
Reserves held
$5.35M
8.76% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $38,126 | 0.12% | 0.06% |
| Reserves (Lender Required) | $797,576 | 2.54% | 1.31% |
| Reserves (Master Tenant) | $4,552,427 | 14.52% | 7.46% |
| Reserves (Improvements) | $4,552,427 | 14.52% | 7.46% |
| Finance Expenses | $1,370,291 | 4.37% | 2.24% |
| Total Acquisition Cost | $52,778,578 | 168.29% | 86.44% |
| Total Acq. Cost (Reserves) | $58,128,580 | 185.35% | 95.20% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $470,412 | 1.50% | 0.77% |
| BD Due Diligence Allowance | $392,010 | 1.25% | 0.64% |
| BD Marketing Allowance | $392,010 | 1.25% | 0.64% |
| O&O Expenses | $188,165 | 0.60% | 0.31% |
| Third Party DD | $871,661 | 2.78% | 1.43% |
| Total Offering Expenses | $2,932,236 | 9.35% | 4.80% |
| Total Fees / Expenses | $2,932,236 | 9.35% | 4.80% |
| Total Upfront Fees (Reserves) | $8,282,240 | 26.41% | 13.56% |
Front-end compensation includes an acquisition fee of $1,114,350 and selling commissions up to 6.0%. Ongoing compensation includes a $50,000 annual asset management fee and a 1.00% refinancing fee.
$470,412
1.50%
$2,932,236
5.92%
The master tenant structure reflects master tenant income of $4,000,000, supporting the hotel operations and debt service requirements.
0.30%
of Additional Rent
$1,467,477
$148,500
Standing
14 of 57
Blended percentile across 14 extracted metrics.
Pricing
57th pct
Leverage
47th pct
Cost
87th pct
Ongoing
57th pct
Structure
46th 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
33rd pct5.28%median 5.50%
Year 1 distribution
49th pct4.51%median 4.60%
Acquisition LTV
33rd pct48.60%median 46.50%
DSCR
57th pct2.01xmedian 1.99x
Interest rate
84th pct4.86%median 5.13%
Total upfront load
77th pct4.80%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 5.28% | 5.50% | 5.00% – 6.00% | −0.22% | 33rd |
| Price per unitPricing | $254K | $293K | $180K – $434K | −$39K | 58th |
| Year 1 distributionPricing | 4.51% | 4.60% | 4.40% – 5.00% | −0.09% | 49th |
| Avg. distribution (term)Pricing | 5.99% | 5.05% | 4.75% – 5.31% | +0.94% | 89th |
| Acquisition LTVLeverage | 48.60% | 46.50% | 18.89% – 50.20% | +2.10% | 33rd |
| Offering LTVLeverage | 48.60% | 46.09% | 2.67% – 49.80% | +2.51% | 30th |
| DSCRLeverage | 2.01x | 1.99x | 1.73x – 2.12x | +0.02x | 57th |
| Interest rateLeverage | 4.86% | 5.13% | 5.01% – 5.48% | −0.26% | 84th |
| Loan termLeverage | 10 yrs | 10 yrs | 8.5 yrs – 10.5 yrs | 0 yrs | 29th |
| Total upfront loadCost | 4.80% | 7.50% | 5.00% – 9.50% | −2.70% | 77th |
| ReservesCost | 17.06% | 5.53% | 1.67% – 8.66% | +11.53% | 96th |
| Asset management feeOngoing | 0.30% | 0.35% | 0.16% – 0.47% | −0.05% | 57th |
| Equity share of capitalStructure | 51.36% | 100.00% | 52.93% – 100.00% | −48.64% | 20th |
| Hold periodStructure | 10 yrs | 10 yrs | 8.5 yrs – 10.5 yrs | 0 yrs | 71st |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| HPI Deer Creek DST | Hamilton Point Investments LLC | 6.00% | 47.50% | 2.02x | 5.14% | 10 yrs | 93% |
| CS1031 Colony at Centerpointe Apartments DST | Capital Square | 5.28% | 54.30% | 1.89x | 4.89% | — | 92% |
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 91% |
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 90% |
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 90% |
| Passco Preston Ridge DST | PASSCO | 5.00% | 46.93% | 2.06x | 4.06% | — | 89% |
| Net-Leased Portfolio 76 DST | ExchangeRight Real Estate, LLC | — | 43.32% | 1.35x | 4.08% | 14.7 yrs | 87% |
| FREX DB SERIES I DST | Fortress Real Estate Exchange LLC | — | 47.10% | — | 5.55% | 11 yrs | 86% |
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.