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 Riverside DST is a Delaware Statutory Trust offering sponsored by PASSCO to acquire a 265-unit multifamily residential apartment complex located at 1181 Manhattan Blvd., Dayton, KY 41074. The total acquisition price of the real estate is $78,566,250, supported by $40,801,000 in loan financing and an equity offering of $48,900,000. Underwriting metrics reflect an acquisition cap rate of 4.75% and a syndicated cap rate of 5.63%. Debt service coverage ratio is underwritten at 2.16x, with an average full-term income projected at 4.81%. Total offering expenses and upfront load equal $3,740,850, or 7.65% of the offering price. Capital allocations also include $3,342,140 in improvement reserves, $305,148 in lender-required reserves, and $300,000 in master tenant reserves.
0.0% of the offering is closed
$48,900,000 still available
$48,900,000
$0
0.0% of offering$0
Pending subscription$48,900,000
Open for subscriptionThe equity offering target is $48,900,000. Total upfront offering expenses are $3,740,850 (7.65% load), which encompasses selling commissions of up to 5.0%, broker-dealer allowances, placement fees of $562,350, and organization and offering costs.
Sector
Multifamily residential apartment complex
Investment Category
DST
Projected First Year Cashflow
—
Avg. 4.81% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$48,900,000
$184,528 per unit
Offering Debt
—
LTV
—
On acquisition price
Units / Tenants
265
1181 Manhattan Blvd., Dayton, KY 41074
Property Age
—
The offering seeks to raise $48,900,000 in equity alongside $40,801,000 in debt to acquire a 265-unit multifamily complex in Dayton, KY. The structure features a 2.16x DSCR and an acquisition cap rate of 4.75%. Front-end fees and offering expenses represent 7.65% ($3,740,850) of the offering equity.
Robust Debt Service Coverage
2.16x DSCRA DSCR of 2.16x provides a substantial operational cushion above required debt service payments.
Substantial Improvement Reserves
$3,342,140The capitalization pre-funds $3,342,140 in improvement reserves in addition to lender and master tenant reserves.
Established Sponsor AUM
$1,800,000,000 AUMPASSCO manages $1.8B in assets under management, demonstrating institutional scale in real estate management.
Upfront Syndication Load
7.65% ($3,740,850)Front-end load and offering expenses consume $3,740,850, or 7.65% of the total equity raised.
Compressed Acquisition Cap Rate
4.75%Going-in acquisition cap rate is 4.75%, which sits 88 basis points below the 5.63% syndicated cap rate.
Undisclosed Property Vintage
Not DisclosedThe year of construction or specific physical age of the apartment complex is not stated in the documentation.
The transaction is supported by a strong debt service coverage ratio of 2.16x, providing cash flow protection against debt obligations. PASSCO brings institutional scale with $1,800,000,000 in assets under management. Furthermore, the capitalization includes substantial capital improvement reserves of $3,342,140 alongside master tenant and lender reserves.
Offering Equity
100.0% of offering
Offering Debt
— LTV on acq.
Acquisition Cost
160.7% of offering
Offering Expenses
7.6% of offering
Reserves
8.1% of offering
Total Offering
$48.90M
All equity — no mortgage debt
Acquisition Cost
$78.57M
160.7% of offering to the property
Total Fees & Expenses
$3.74M
7.65% of offering
Reserves
$3.95M
8.1% of offering
Sources include $48,900,000 in offering equity and $40,801,000 in loan proceeds. Primary uses comprise the $78,566,250 property acquisition, $3,740,850 in upfront offering expenses, $1,140,826 in loan and lender expenses, $1,227,906 in carry costs, and $3,342,140 in improvement reserves.
Tone reflects relative strength, not a rating
Front-End Load
Moderate syndication loadTotal offering expenses of $3,740,850 equal 7.65% of the offering price, comprising commissions, placement fees, and marketing allowances.
Debt Service Coverage
Strong coverage ratioThe loan structure carries a 2.16x DSCR on $40,801,000 of debt, providing solid operational safety.
Property Age Transparency
Missing vintage disclosureThe year of construction for the 265-unit apartment complex is not disclosed in the excerpts, though the DST was formed on September 30, 2025.
Capital Reserves
Substantially funded$3,342,140 is allocated to improvement reserves, alongside $305,148 in lender reserves and $300,000 in master tenant reserves.
Key underwriting risks include an upfront fee load of 7.65% ($3,740,850) that reduces invested capital efficiency. Additionally, the initial acquisition cap rate is low at 4.75%, requiring operational performance to achieve the 5.63% syndicated cap rate. The specific year of construction for the property is not disclosed in the offering materials.
Syndicated Cap Rate
5.63%
NOI ÷ offering price
Upfront Load
7.65%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
62.2%
Offering price ÷ acquisition price
Price per Unit
$184,528
Offering price ÷ 265 units
Distribution rates as extracted from the offering materials.
The acquisition cap rate is 4.75% on a purchase price of $78,566,250, while the syndicated cap rate is calculated at 5.63%. Debt financing of $40,801,000 complements $48,900,000 in equity, producing a total capitalization that accommodates $3,740,850 in upfront load and over $3.9 million in total reserves. Debt coverage remains strong at 2.16x with projected average full-term income of 4.81%.
Sponsor
PASSCO is an institutional real estate sponsor overseeing $1,800,000,000 in assets under management with a specific focus on multifamily apartment properties.
—
Properties owned or managed
$1,800,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
multifamily residential apartment complex
Stated strategy
PASSCO serves as the sponsor for this DST offering, maintaining an institutional asset base with $1,800,000,000 in assets under management. The sponsor operates within the multifamily residential apartment sector. Further historical sponsor-level disposition performance is not disclosed in the provided excerpts.
Manages $1,800,000,000 in total assets under management.
Established presence in the multifamily residential sector.
Historical full-cycle disposition returns are not disclosed in the provided fields.
Detailed management team track records are not stated.
The property
$78,566,250 acquisition price
Passco Riverside DST
multifamily residential apartment complex
1181 Manhattan Blvd., Dayton, KY 41074
1181 Manhattan Blvd., Dayton, KY 41074
$78,566,250
100.0% of portfolio
The trust secured a $23,684,000 fixed-rate loan at 5.44% with a 10-year term and a 1.70x DSCR. Prepayment requires yield maintenance or a 1% fee, with defeasance available after a two-year lockout following securitization.
$40,801,000
—
—
—
—
2.16x
—
—
The asset was acquired for $37,325,000, resulting in a 5.25% acquisition cap rate. Total acquisition cost including fees and reserves equals $44,994,000, reflecting an 8.38% syndicated cap rate.
88 bps of spread between acquisition and syndicated cap rate.
$78,566,250
$48,900,000
—
$3,740,850
—
7.65%
4.75%
5.63%
—
—
—
Proceeds fund the $37,325,000 acquisition price, $2,397,375 in total front-end fees, $264,005 in financing expenses, $466,504 in loan expenses, and $275,000 in Master Tenant reserves.
Total Fees & Expenses
$3,740,850
% of offering
7.65%
All-equity offering — load on equity equals load on offering price. · $3,342,140 including reserves (6.83% of offering)
Total fees & expenses
$3.74M
7.65% of offering
Offering expenses
$3.74M
7.65% of offering
Reserves held
$3.95M
8.07% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Reserves (Lender Required) | $305,148 | 0.62% | 0.62% |
| Reserves (Master Tenant) | $300,000 | 0.61% | 0.61% |
| Reserves (Improvements) | $3,342,140 | 6.83% | 6.83% |
| Loan & Lender Expenses | $1,140,826 | 2.33% | 2.33% |
| Finance Expenses | $1,140,826 | 2.33% | 2.33% |
| Total Acquisition Cost | $78,566,250 | 160.67% | 160.67% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $2,445,000 | 5.00% | 5.00% |
| Placement Agent Fee | $562,350 | 1.15% | 1.15% |
| BD Due Diligence Allowance | $244,500 | 0.50% | 0.50% |
| BD Marketing Allowance | $489,000 | 1.00% | 1.00% |
| O&O Expenses | $230,000 | 0.47% | 0.47% |
| Third Party DD | $200,000 | 0.41% | 0.41% |
| Carry Costs | $1,227,906 | 2.51% | 2.51% |
| Total Offering Expenses | $3,740,850 | 7.65% | 7.65% |
| Total Upfront Fees (Reserves) | $3,342,140 | 6.83% | 6.83% |
Sponsor and affiliate compensation includes a $1,226,200 acquisition fee, an annual asset management fee of $52,877, a 2.0% disposition fee on gross sales price, and potential construction management fees.
$28,000
0.06%
$3,740,850
4.76%
The 140-unit asset operates under a master lease structure with master tenant income set at 98% between specific hurdles. Onsite staffing is set at 1.5 full-time employees shared with an adjacent master tenant asset.
Standing
22 of 57
Blended percentile across 9 extracted metrics.
Pricing
41st pct
Leverage
79th pct
Cost
63rd pct
Ongoing
0th pct
Structure
50th 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
9th pct4.75%median 5.50%
DSCR
79th pct2.16xmedian 1.99x
Total upfront load
43rd pct7.65%median 5.97%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 4.75% | 5.50% | 5.07% – 6.00% | −0.75% | 9th |
| Syndicated cap ratePricing | 5.63% | 5.49% | 4.84% – 5.83% | +0.14% | 52nd |
| Price per unitPricing | $185K | $293K | $180K – $434K | −$109K | 70th |
| Avg. distribution (term)Pricing | 4.81% | 5.08% | 4.75% – 5.32% | −0.27% | 31st |
| DSCRLeverage | 2.16x | 1.99x | 1.73x – 2.10x | +0.17x | 79th |
| Total upfront loadCost | 7.65% | 5.97% | 4.89% – 9.50% | +1.68% | 43rd |
| Selling commissionCost | 5.00% | 6.00% | 5.00% – 6.00% | −1.00% | 75th |
| ReservesCost | 8.07% | 5.53% | 1.67% – 9.03% | +2.54% | 70th |
| Equity share of capitalStructure | 100.00% | 97.50% | 52.74% – 100.00% | +2.50% | 50th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| NREX II DST | Nuveen Real Estate Exchange LLC | — | 0.00% | — | — | 20 yrs | 93% |
| Inland Mokena Senior Living DST | Inland Private Capital Corporation (IPC) | — | — | — | 8.40% | 31 yrs | 92% |
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 90% |
| Canyon State Minerals LLC | Montego Minerals | — | — | — | 9.50% | — | 90% |
| Inland Self Storage Portfolio XXII DST | Inland Private Capital Corporation | — | 0.00% | — | 8.40% | — | 89% |
| Madison Waterstar Orlando DST | Madison Capital Group | 5.30% | 40.00% | — | 7.55% | — | 87% |
| Cottonwood Riverfront DST | CC Exchange TRS, Inc. | — | 39.26% | 2.00x | 8.70% | 7 yrs | 85% |
| Texas Active Living Portfolio II DST | Capital Square | 5.65% | 0.00% | — | 9.65% | — | 85% |
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.