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
Passco Preston Ridge DST is a syndicated Delaware Statutory Trust offering sponsored by PASSCO, structured around a 340-unit multifamily community in Hickory, NC. The property was completed in 2020/2023, representing recently built residential real estate. The total offering price is $83,565,000, supported by $44,350,000 in offering equity and $39,215,000 in fixed-rate debt financing. Financing carries an interest rate of 5.01% with an initial debt service coverage ratio (DSCR) of 2.06x and an offering loan-to-value (LTV) of 46.93%. The acquisition price is $79,352,943, acquired at an acquisition cap rate of 5%. The projected full-term average income is 5.19%.
0.0% of the offering is closed
$44,350,000 still available
$44,350,000
$0
0.0% of offering$0
Pending subscription$44,350,000
Open for subscriptionPASSCO is raising $44,350,000 in equity for the Passco Preston Ridge DST offering. The equity load is stated at 5%, with syndication costs including a $510,025 placement agent fee, $443,500 BD marketing allowance, and $221,750 BD due diligence allowance. Selling commissions are not stated in the offering documentation.
Sector
Multi-family residential apartment complex
Investment Category
DST
Projected First Year Cashflow
—
Avg. 5.19% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$83,565,000
$245,779 per unit
Offering Debt
$39,215,000
5.01%
LTV
46.93%
On acquisition price
Units / Tenants
340
2001 Startown Rd Hickory, NC 28602
Property Age
The Preston Ridge apartment community was completed in 2020/2023, indicating a recently built property.
The offering encompasses a 340-unit multifamily property located at 2001 Startown Rd in Hickory, NC. It is capitalized with $44,350,000 in equity and $39,215,000 in fixed-rate debt at 5.01% interest. Key metrics include a 46.93% LTV, a 2.06x DSCR, and a projected full-term average income of 5.19%.
Debt Coverage
2.06x DSCRThe property carries a fixed interest rate of 5.01% with a debt service coverage ratio of 2.06x at a 46.93% LTV.
Asset Vintage
2020/2023The 340-unit multifamily community is of recent vintage, minimizing near-term capital expenditure requirements.
Substantial Reserve Capitalization
$4,212,057The offering structure establishes $4,212,057 in lumped and improvement reserves alongside lender-required escrows.
Cap Rate to Debt Rate Spread
5% Cap vs 5.01% DebtThe acquisition cap rate of 5% is slightly below the fixed interest rate of 5.01%.
Undisclosed Selling Commissions
Not DisclosedThe documentation does not state selling commissions, although total front-end fees are quantified at $3,392,775.
Omitted Sponsor Experience Metrics
Not DisclosedDST track record, portfolio unit/property count, and organizational headcount are not disclosed in the materials.
The asset features moderate leverage with an offering LTV of 46.93% and a robust debt service coverage ratio of 2.06x. The debt is secured at a fixed interest rate of 5.01%, mitigating near-term interest rate volatility. Additionally, the property is recently constructed (2020/2023), limiting immediate structural obsolescence.
Offering Equity
53.1% of offering
Offering Debt
46.93% LTV on acq.
Acquisition Cost
87.5% of offering
Offering Expenses
4.1% of offering
Reserves
5.9% of offering
Unallocated / other uses
2.5% of offering
Total Offering
$83.56M
Equity $44.35M + debt $39.22M
Acquisition Cost
$73.09M
87.5% of offering to the property
Total Fees & Expenses
$3.39M
4.06% of offering
Reserves
$4.96M
5.9% of offering
Total uses include a $79,352,943 acquisition price, $3,392,775 in total front-end fees and offering expenses, and $1,116,013 in carry costs. Sources are balanced by $44,350,000 in investor equity and $39,215,000 in loan proceeds.
Tone reflects relative strength, not a rating
Leverage & Debt
Low leverage with fixed interest rate and strong coverage.The loan structure utilizes $39,215,000 in fixed-rate debt at 5.01% interest, resulting in a 46.93% LTV and 2.06x DSCR.
Spread Risk
Acquisition cap rate is flat against borrowing costs.Going-in acquisition cap rate is 5% relative to a 5.01% note rate, requiring operational execution to drive cash yield.
Upfront Fee Load
Standard front-end fee structure with partial disclosure gaps.Offering expenses total $3,392,775 with a 5% load on equity; specific broker-dealer selling commissions are not stated.
Sponsor Disclosures
Sponsor DST track record and operational metrics are omitted.While PASSCO reports $1,800,000,000 in AUM, specific DST history, employee count, and portfolio count are not disclosed.
Key underwriting risks include asset-level reliance on the Hickory, NC multifamily market and an acquisition cap rate of 5% relative to the 5.01% debt interest rate. Furthermore, the sponsor's DST track record, headcount, and total active property count are not disclosed in the offering materials.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
4.06%
Total fees ÷ offering price
Load on Equity
5.00%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
105.3%
Offering price ÷ acquisition price
Price per Unit
$245,779
Offering price ÷ 340 units
Distribution rates as extracted from the offering materials.
The offering equity of $44,350,000 and debt of $39,215,000 constitute the $83,565,000 total offering price against an acquisition price of $79,352,943. Front-end fees and offering expenses total $3,392,775, representing a 5% load on equity. Total lumped and improvement reserves established in the structure amount to $4,212,057.
Sponsor
PASSCO is a real estate sponsor with an established sector focus in multi-family residential apartment complexes and reports $1,800,000,000 in assets under management. Specific operational metrics such as employee headcount, active property count, and historical DST syndication volume are not disclosed in the provided excerpts.
The excerpts do not mention how many properties are currently owned or managed in the sponsor’s portfolio.
Properties owned or managed
$1,800,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
multi-family residential apartment complex
Stated strategy
PASSCO serves as the sponsor, reporting approximately $1,800,000,000 in assets under management. Specific information regarding team headcount, active portfolio property count, and historical DST track record is not disclosed in the provided excerpts. The sponsor maintains a sector focus on multifamily residential apartment assets.
Manages $1,800,000,000 in total assets under management.
Clear specialization in multifamily residential apartment complexes.
DST-specific track record is omitted from offering materials.
Total employee headcount and active property count are not disclosed.
The property
$79,352,943 acquisition price
Passco Preston Ridge DST
Multifamily
The Preston Ridge apartment community was completed in 2020/2023, indicating a recently built property.
2001 Startown Rd Hickory, NC 28602
2001 Startown Rd Hickory, NC 28602
$79,352,943
100.0% of portfolio
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.
$39,215,000
—
5.01%
Fixed
—
2.06x
46.93%
46.93%
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.
$79,352,943
$83,565,000
—
—
5%
—
5%
—
—
95.28%
4.61%
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
$3,392,775
% of equity
5.00%
% of offering
4.06%
$3,603,357 including reserves (4.31% of offering)
Total fees & expenses
$3.39M
4.06% of offering
Offering expenses
$3.39M
4.06% of offering
Reserves held
$4.96M
5.93% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Title & Recording Costs | $125,000 | 0.28% | 0.15% |
| Reserves (Loan Proceeds) | $248,700 | 0.56% | 0.30% |
| Reserves (Lender Required) | $136,000 | 0.31% | 0.16% |
| Reserves (Master Tenant) | $360,000 | 0.81% | 0.43% |
| Reserves (Lumped) | $4,212,057 | 9.50% | 5.04% |
| Reserves (Improvements) | $4,212,057 | 9.50% | 5.04% |
| Loan & Lender Expenses | $1,087,090 | 2.45% | 1.30% |
| Finance Expenses | $1,087,090 | 2.45% | 1.30% |
| Total Acquisition Cost | $73,086,065 | 164.79% | 87.46% |
| Total Acq. Cost (Reserves) | $73,086,065 | 164.79% | 87.46% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Placement Agent Fee | $510,025 | 1.15% | 0.61% |
| BD Due Diligence Allowance | $221,750 | 0.50% | 0.27% |
| BD Marketing Allowance | $443,500 | 1.00% | 0.53% |
| O&O Expenses | $286,000 | 0.64% | 0.34% |
| Third Party DD | $260,000 | 0.59% | 0.31% |
| Carry Costs | $1,116,013 | 2.52% | 1.34% |
| Total Offering Expenses | $3,392,775 | 7.65% | 4.06% |
| Total Upfront Fees (Reserves) | $3,603,357 | 8.12% | 4.31% |
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.
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.
Standing
9 of 57
Blended percentile across 10 extracted metrics.
Pricing
49th pct
Leverage
57th pct
Cost
88th pct
Ongoing
0th pct
Structure
28th 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
21st pct5.00%median 5.50%
Acquisition LTV
49th pct46.93%median 46.50%
DSCR
64th pct2.06xmedian 1.99x
Interest rate
72nd pct5.01%median 5.13%
Total upfront load
89th pct4.06%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 5.00% | 5.50% | 5.07% – 6.00% | −0.50% | 21st |
| Price per unitPricing | $246K | $293K | $180K – $434K | −$48K | 63rd |
| Avg. distribution (term)Pricing | 5.19% | 5.05% | 4.75% – 5.32% | +0.14% | 62nd |
| Acquisition LTVLeverage | 46.93% | 46.50% | 18.89% – 50.20% | +0.43% | 49th |
| Offering LTVLeverage | 46.93% | 46.09% | 2.67% – 49.80% | +0.84% | 44th |
| DSCRLeverage | 2.06x | 1.99x | 1.73x – 2.12x | +0.07x | 64th |
| Interest rateLeverage | 5.01% | 5.13% | 5.00% – 5.48% | −0.12% | 72nd |
| Total upfront loadCost | 4.06% | 7.50% | 5.00% – 9.50% | −3.44% | 89th |
| ReservesCost | 11.18% | 5.53% | 1.67% – 8.66% | +5.64% | 87th |
| Equity share of capitalStructure | 53.07% | 100.00% | 52.74% – 100.00% | −46.93% | 28th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| CS1031 Colony at Centerpointe Apartments DST | Capital Square | 5.28% | 54.30% | 1.89x | 4.89% | — | 93% |
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 91% |
| CS1031 Cacema Townhomes DST | Capital Square Realty Advisors, LLC | 5.32% | 44.39% | 2.10x | 5.37% | 10 yrs | 91% |
| Griffin Capital Tulsa BTR DST | Griffin Capital Residential Partners Institutional Property Exchange, LLC | 5.77% | 46.50% | — | 5.00% | 10 yrs | 91% |
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 91% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 90% |
| FREX DB SERIES I DST | Fortress Real Estate Exchange LLC | — | 47.10% | — | 5.55% | 11 yrs | 90% |
| CS1031 Parkland Apartments DST | Capital Square | 5.36% | 40.99% | 1.90x | 5.90% | 10 yrs | 89% |
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.