Dave Bulger

Vice President

O (855) 378-3443|C (561) 715-3235

E dbulger@carmonawealth.com

W carmonawealth.com

18 Formero Street, Rancho Mission Viejo, CA 92694

Investment underwriting report

Passco Toscano DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

Passco Toscano DST is a Delaware Statutory Trust offering sponsored by PASSCO to acquire a 230-unit apartment community located at 15 Artisan Dr in Salem, NH. Completed in 2024, the newly constructed multifamily asset is being financed with $77,400,000 in equity and $68,750,000 in fixed-rate debt. The underlying debt carries an interest rate of 4.91%, reflecting an offering LTV of 47.04% and a debt service coverage ratio of 2.06x. Total acquisition cost including reserves stands at $146,150,000, with total upfront front-end fees and offering expenses totaling $5,921,100. Projected cash distributions are structured to begin at 4.47% in Year 1, with a forecasted full-term average distribution rate of 5.05%.

Capital raise

0.0% of the offering is closed

$77,400,000 still available

Closed$0 Reservations$0 Available$77,400,000

$0 of $77,400,000 placed

Total offering equity

$77,400,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$77,400,000

Open for subscription

PASSCO is raising $77,400,000 in equity from accredited 1031 exchange and direct investors. Front-end load components include a $774,000 dealer fee, $890,100 placement agent fee, $774,000 BD marketing allowance, and $387,000 BD due diligence allowance. Total offering expenses represent $5,921,100 of the equity capital raise.

Offering terms

Sector

230-unit apartment community

Investment Category

DST

Projected First Year Cashflow

4.47%

Avg. 5.05% over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$77,400,000

$336,522 per unit

Offering Debt

$68,750,000

4.91%

LTV

47.04%

On acquisition price

Units / Tenants

230

15 Artisan Dr Salem, NH, 03079

Property Age

The property was completed in 2024, indicating it is a newly built apartment community.

The offering features a 230-unit Class A apartment asset completed in 2024 in Salem, NH. PASSCO is raising $77,400,000 in equity alongside $68,750,000 in fixed-rate financing at a 4.91% interest rate. Initial cash flow is projected at 4.47% for Year 1 with an average full-term rate of 5.05%.

Strengths & considerations

Key strengths

Conservative Leverage & DSCR
47.04% LTV / 2.06x DSCR
Modest debt load of $68,750,000 against the $146,150,000 total capitalization provides strong downside protection and cash flow coverage.
New Construction Asset
2024 Vintage
Completed in 2024, the 230-unit multifamily community presents minimal near-term capital expenditure or structural maintenance needs.
Fixed Borrowing Costs
4.91% Fixed Interest
The fully fixed borrowing rate insulates cash distributions from benchmark interest rate volatility across the investment lifecycle.

Key considerations

Flat Initial Spread
4.91% Cap Rate vs 4.91% Cost of Debt
Going-in acquisition cap rate exactly equals the interest rate, providing zero immediate positive financial leverage.
Total Front-End Load
$5,921,100
Upfront offering expenses and syndication fees total $5,921,100, impacting the net invested equity base.
Undisclosed Appraisal & Track Record
Not Disclosed
Third-party appraised valuation and the sponsor's historical DST program track record data are omitted from the excerpts.

Credit metrics are supported by a conservative leverage profile with an offering LTV of 47.04% and a robust debt service coverage ratio of 2.06x. The property is a 2024 new construction asset, mitigating immediate deferred maintenance risk. Furthermore, the fixed-rate loan at 4.91% eliminates interest rate volatility during the holding period.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$77.40M
Offering Debt
47.04% LTV on acq.
$68.75M

Where the Capital Goes

Acquisition Cost
162.7% of offering
$125.94M
Offering Expenses
7.6% of offering
$5.92M
Reserves
16.9% of offering
$13.05M

Total Offering

$77.40M

All equity — no mortgage debt

Acquisition Cost

$125.94M

162.7% of offering to the property

Total Fees & Expenses

$5.92M

77400000.00% of offering

Reserves

$13.05M

16.9% of offering

Total capital sources consist of $77,400,000 in equity and $68,750,000 in debt proceeds to fund the total capitalization of $146,150,000. Uses include property acquisition costs of $125,937,500, total reserves of $6,525,187, and total offering and financing expenses of $5,921,100.

Risk read

Tone reflects relative strength, not a rating

Leverage Profile

Conservative 47.04% LTV

The trust utilizes $68,750,000 in fixed-rate debt, resulting in a low 47.04% LTV and a strong 2.06x DSCR.

Cap Rate vs Debt Cost

Neutral 0 bps spread

Both the acquisition cap rate and borrowing rate are 4.91%, relying entirely on NOI expansion for cash flow growth.

Fee Burden

$5,921,100 Total Front-End Costs

Syndication costs, dealer fees, and placement expenses represent $5,921,100 of total equity proceeds.

Asset Condition

2024 Vintage

Completed in 2024, the 230-unit apartment asset benefits from modern institutional construction and warranty coverage.

Primary considerations include a neutral going-in cap rate spread with the acquisition cap rate and interest rate both at 4.91%. Total front-end offering fees of $5,921,100 represent a notable upfront load on equity. Additionally, appraised value and specific sponsor DST historical performance metrics are not disclosed in the offering materials.

Calculated underwriting metrics

Syndicated Cap Rate

—

NOI ÷ offering price

Upfront Load

77400000.00%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

55.4%

Offering price ÷ acquisition price

Price per Unit

$336,522

Offering price ÷ 230 units

Projected distribution rate

Avg 4.76%

Yr 1Term avg.

Yr 1 4.47%Term avg. 5.05%

Distribution rates as extracted from the offering materials.

The total capitalization of $146,150,000 incorporates $6,525,187 in total lumped reserves and $5,921,100 in front-end fees and offering expenses. Acquisition cap rate matches the debt coupon at 4.91%, creating a neutral spread between going-in property yield and borrowing cost. Projected full-term average yield of 5.05% provides moderate growth over the initial 4.47% Year 1 yield.

Sponsor

PASSCO

PASSCO is a real estate sponsor with approximately $1,800,000,000 in assets under management. While active in the multifamily sector, specific prior DST program track records, portfolio property counts, and internal employee counts were not disclosed in the offering text.

$1.8B AUMMultifamily FocusDST Sponsor

Portfolio

—

Properties owned or managed

AUM

$1,800,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

—

Disclosed headcount

Sector focus

230-unit apartment community

Stated strategy

View Sponsor Dossier

PASSCO serves as the sponsor, managing approximately $1,800,000,000 in assets under management. The offering documentation does not disclose specific metrics regarding employee headcount, total portfolio property counts, or historical DST program track records. PASSCO's primary focus in this syndication centers on institutional-grade multifamily assets.

Sponsor strengths

Manages an established institutional asset base of $1,800,000,000
Demonstrated placement capabilities across institutional multifamily assets

Sponsor concerns

Prior DST full-cycle program performance metrics are not disclosed
Portfolio asset count and organization size are omitted from the documentation

The Property

The property

230-Unit 2024 Multifamily Asset in Salem, NH

$139,624,813 acquisition price

Passco Toscano DST

230-unit apartment community

The property was completed in 2024, indicating it is a newly built apartment community.

15 Artisan Dr Salem, NH, 03079

230 units230-unit apartment community

$139,624,813

100.0% of portfolio

Seller: —
Property manager: PASSCO

Financing Terms

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.

Leverage profile

Loan amount$68.75M88.8% of offering · 47.04% LTV

Offering equity$8.65M11.2% of offering

Loan Amount

$68,750,000

Term

—

Interest Rate

4.91%

Fixed / Variable

Fixed

Prepayment Penalty

—

DSCR

2.06x

Acquisition LTV

47.04%

Offering LTV

47.04%

Strengths

Low leverage structure at 47.04% LTV
Strong debt service coverage ratio of 2.06x
Fixed interest rate of 4.91% eliminating rate exposure

Concerns

Financing expenses and lender fees total $1,776,563

Transaction Metrics

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.

Valuation ladder

Acquisition price$139.62M

Offering price$77.40M+-44.6%

Cap rate spread & load

Acquisition cap rate4.91%

Upfront load (all-equity)77400000.00%equity = offering price

Load net of reserves-9.21%

Acquisition Price

$139,624,813

Offering Price

$77,400,000

Appraised Value

—

Upfront Load

$77,400,000

Load on Equity

—

Load on Offering Price

—

Acquisition Cap Rate

4.91%

Syndicated Cap Rate

—

Premium / Discount

—

Appraisal / Offering %

—

Less Reserves %

—

Strengths

Substantial reserve funding totaling $6,525,187
Class A 230-unit multifamily scale

Concerns

Acquisition cap rate is tight at 4.91%
Going-in property yield offers no positive spread over debt cost

Use of Proceeds

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

$5,921,100

% of offering

77400000.00%

All-equity offering — load on equity equals load on offering price. · $5,371,685 including reserves (6.94% of offering)

Where the offering proceeds go

Acquisition Cost$125.94M162.7%

Offering Expenses$5.92M7.6%

Reserves$13.05M16.9%

Total fees & expenses

$5.92M

77400000.00% of offering

Offering expenses

$5.92M

7.65% of offering

Reserves held

$13.05M

16.86% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Title & Recording Costs	$245,000	0.32%	0.32%
Reserves (Loan Proceeds)	$533,502	0.69%	0.69%
Reserves (Lender Required)	$533,502	0.69%	0.69%
Reserves (Master Tenant)	$620,000	0.80%	0.80%
Reserves (Lumped)	$6,525,187	8.43%	8.43%
Reserves (Improvements)	$5,371,685	6.94%	6.94%
Loan & Lender Expenses	$1,776,563	2.30%	2.30%
Finance Expenses	$1,776,563	2.30%	2.30%
Total Acquisition Cost	$125,937,500	162.71%	162.71%
Total Acq. Cost (Reserves)	$146,150,000	188.82%	188.82%

Offering Expenses

Item	Amount	% Equity	% Offering
Dealer Fee	$774,000	1.00%	1.00%
Placement Agent Fee	$890,100	1.15%	1.15%
BD Due Diligence Allowance	$387,000	0.50%	0.50%
BD Marketing Allowance	$774,000	1.00%	1.00%
O&O Expenses	$286,000	0.37%	0.37%
Third Party DD	$270,000	0.35%	0.35%
Carry Costs	$2,063,650	2.67%	2.67%
Total Offering Expenses	$5,921,100	7.65%	7.65%
Total Upfront Fees (Reserves)	$5,371,685	6.94%	6.94%

Strengths

Fully funded reserves including $5,371,685 for improvements
Clear debt and equity source breakdown

Concerns

Front-end offering fees consume $5,921,100 of proceeds

Sponsor Compensation

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.

Front-end fee composition

Dealer Fee$0.77M1.00%

Total front-end sponsor compensation$5,921,100 4.24% of acq. cost

Dealer Fee

$774,000

1.00%

Total Front-end Fees

$5,921,100

4.24%

Strengths

Clearly itemized broker-dealer and placement fee schedule

Concerns

Total front-end syndication fees aggregate to $5,921,100
Selling commissions are not explicitly broken out in the excerpts

Operating & Disposition Fees

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.

Ongoing fee rates

Strengths

Solid 2.06x DSCR offers cash flow buffer
Projected distribution growth from 4.47% to 5.05%

Concerns

Yield growth is dependent on property-level rent growth

Comparative Analysis

50Composite

Standing

30 of 57

Blended percentile across 11 extracted metrics.

Pricing

34th pct

Leverage

58th pct

Cost

69th pct

Ongoing

0th pct

Structure

50th pct

Percentile profile

Pricing

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%4.91%18th

Price per unitMin $24KMed $284KMax $3290K$337K30th

Year 1 distributionMin 0.00%Med 4.60%Max 6.75%4.47%37th

Avg. distribution (term)Min 0.00%Med 5.08%Max 7.00%5.05%49th

Leverage

Offering LTVMin 0.00%Med 46.09%Max 77.78%47.04%42nd

Acquisition LTVMin 0.00%Med 46.50%Max 84.00%47.04%46th

DSCRMin 1.00xMed 1.99xMax 3.38x2.06x64th

Interest rateMin 3.91%Med 5.13%Max 9.11%4.91%81st

Cost

Total upfront loadMin 1.96%Med 5.97%Max 12.05%7.65%43rd

ReservesMin 0.11%Med 5.53%Max 18.84%16.86%94th

Ongoing

Structure

Equity share of capitalMin 6.09%Med 97.50%Max 100.00%100.00%50th

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.

Where the headline metrics fall in the cohort

Acquisition cap rate

18th pct

4.91%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Year 1 distribution

37th pct

4.47%median 4.60%

Min 0.00%Med 4.60%Max 6.75%

Acquisition LTV

46th pct

47.04%median 46.50%

Min 0.00%Med 46.50%Max 84.00%

DSCR

64th pct

2.06xmedian 1.99x

Min 1.00xMed 1.99xMax 3.38x

Interest rate

81st pct

4.91%median 5.13%

Min 3.91%Med 5.13%Max 9.11%

Total upfront load

43rd pct

7.65%median 5.97%

Min 1.96%Med 5.97%Max 12.05%

Metric-by-metric comparison

Metric	This offering	Cohort median	25th–75th	Difference	Percentile
Acquisition cap ratePricing	4.91%	5.50%	5.07% – 6.00%	−0.59%	18th
Price per unitPricing	$337K	$284K	$180K – $434K	+$53K	30th
Year 1 distributionPricing	4.47%	4.60%	4.40% – 5.00%	−0.13%	37th
Avg. distribution (term)Pricing	5.05%	5.08%	4.75% – 5.32%	−0.03%	49th
Acquisition LTVLeverage	47.04%	46.50%	18.89% – 50.20%	+0.54%	46th
Offering LTVLeverage	47.04%	46.09%	2.67% – 49.80%	+0.95%	42nd
DSCRLeverage	2.06x	1.99x	1.73x – 2.12x	+0.07x	64th
Interest rateLeverage	4.91%	5.13%	5.01% – 5.48%	−0.21%	81st
Total upfront loadCost	7.65%	5.97%	4.89% – 9.50%	+1.68%	43rd
ReservesCost	16.86%	5.53%	1.67% – 8.66%	+11.33%	94th
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th

Closest comparables

Offering	Sponsor	Cap rate	LTV	DSCR	Load	Hold	Match
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	92%
Canyon State Minerals LLC	Montego Minerals	—	—	—	9.50%	—	88%
Passco Riverside DST	PASSCO	4.75%	—	2.16x	7.65%	—	82%
NexPoint Waterford DST	NexPoint Real Estate Advisors IV, L.P.	5.28%	48.60%	2.01x	4.80%	10 yrs	81%
CS1031 Colony at Centerpointe Apartments DST	Capital Square	5.28%	54.30%	1.89x	4.89%	—	81%
CS1031 Parkland Apartments DST	Capital Square	5.36%	40.99%	1.90x	5.90%	10 yrs	79%
NexPoint Small Bay III DST	NexPoint Real Estate Advisors IV, L.P.	5.50%	44.90%	—	5.15%	—	79%
BR Parkview Multifamily DST	BVEX	5.81%	49.45%	1.91x	4.78%	10 yrs	78%

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.