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

The Heron DST

Complete offering, sponsor, fee and comparative analysis

Prepared

August 26, 2026

Offering Summary

Offering summary

The Heron DST is a single-asset multifamily offering sponsored by CEDARst to acquire a five-story residential building constructed in 2023. The property was purchased for an acquisition price of $28,261,384, which compares to an appraised market value of $28,300,000 as of February 2, 2026. Total acquisition costs equal $30,369,062.5, funded via $12,625,000 in syndicated equity and debt financing. The loan features a fixed interest rate of 5.6% for an 8-year term, subject to an initial 12-month prepayment lockout and subsequent yield maintenance. Total front-end fees and offering expenses stand at $1,230,937.5, representing a 9.75% load on the offering equity. Operating liquidity is supported by $900,000 in master tenant reserves alongside projected master tenant income of $924,000.

Capital raise

0.0% of the offering is closed

$12,625,000 still available

Closed$0 Reservations$0 Available$12,625,000

$0 of $12,625,000 placed

Total offering equity

$12,625,000

Closed equity

0.0% of offering

Current reservations

Pending subscription

Available equity

$12,625,000

Open for subscription

The Trust is raising $12,625,000 in equity interests on a best-efforts basis through FINRA-member broker-dealers. Total placement fees reach up to 9.75% of gross proceeds, including selling commissions of up to 6.00%. Additional costs include a dealer fee of $94,687.5.

Offering terms

Sector

Multifamily

Investment Category

DST

Projected First Year Cashflow

—

Avg. — over term

Min. Cash Investment

—

Min. 1031 Investment

—

Total Offering Price

$12,625,000

Offering Debt

—

All-equity offering

LTV

—

On acquisition price

Units / Tenants

—

Property Age

The Property consists of one five-story multifamily residential building that was built in 2023.

The offering involves a 2023-built, five-story multifamily asset acquired for $28,261,384 against an appraised value of $28,300,000. Total acquisition costs of $30,369,062.5 are capitalized with $12,625,000 in DST equity and fixed-rate debt at 5.6%. Front-end syndication fees and expenses total $1,230,937.5, resulting in a 9.75% load on offering equity.

Strengths & considerations

Key strengths

Recent Construction Vintage
2023 Construction
The five-story asset was built in 2023, minimizing immediate deferred maintenance and capital expenditure requirements.
Fixed-Rate Debt Structure
5.6% Fixed / 8 Years
The loan carries a fixed interest rate of 5.6% across an 8-year term, eliminating variable interest rate exposure.
Experienced Multifamily Sponsor
$4,000,000,000 AUM
CEDARst manages $4,000,000,000 in assets and has developed or invested in over 65 assets and 7,500 units since 2009.

Key considerations

Front-End Load Burden
9.75%
Total front-end fees and offering expenses equal $1,230,937.5, creating a 9.75% load on the $12,625,000 equity raise.
Prepayment Restraints
12-Mo. Lockout + YM
Financing includes a closed 12-month prepayment lockout followed by yield maintenance before terminating near loan maturity.
Ongoing Sponsor Compensation
$151,000 / Yr + 3.0%
The Trust is subject to a $151,000 annual asset management fee, a 3.0% property management fee on gross revenues, and a 3% disposition fee.

The asset provides modern physical infrastructure having been constructed in 2023, minimizing immediate capital expenditure requirements. Debt terms provide stability with a fixed 5.6% interest rate over an 8-year maturity. Furthermore, sponsor CEDARst brings substantial sector experience, managing $4,000,000,000 in assets under management across a portfolio of over 6,000 units.

Sources, uses & fee assessment

Capital Sources

Offering Equity
100.0% of offering
$12.63M

Where the Capital Goes

Acquisition Cost
240.5% of offering
$30.37M
Offering Expenses
9.8% of offering
$1.23M
Reserves
7.6% of offering
$963K

Total Offering

$12.63M

All equity — no mortgage debt

Acquisition Cost

$30.37M

240.5% of offering to the property

Total Fees & Expenses

$1.23M

9.75% of offering

Reserves

$963K

7.6% of offering

Total acquisition costs of $30,369,062.5 are funded through $12,625,000 in offering equity and debt proceeds. Primary uses comprise the $28,261,384 acquisition price, $1,230,937.5 in front-end fees and offering expenses, $900,000 in master tenant reserves, $62,906 in loan proceed reserves, and $53,036 in title and recording costs. Financing expenses account for $1,031.

Risk read

Tone reflects relative strength, not a rating

Front-End Load

Syndication costs reduce initial equity backing.

Total upfront fees and offering expenses equal $1,230,937.5, representing 9.75% of the $12,625,000 offering price.

Debt Terms

Fixed interest rate provides rate certainty through an 8-year term.

Loan carries a fixed 5.6% interest rate over 8 years, subject to a 12-month lockout and subsequent yield maintenance.

Asset Age

Modern construction reduces near-term capital expenditure risk.

The property consists of one five-story residential building completed in 2023.

Sponsor Scale

Established operator with substantial multifamily management experience.

CEDARst manages $4,000,000,000 in AUM across a portfolio of over 6,000 active units.

The offering carries single-asset concentration risk in a single five-story multifamily property. Investors absorb $1,230,937.5 in upfront fees and expenses (a 9.75% load), alongside ongoing fee structures including a $151,000 annual asset management fee and a 3% disposition fee. Debt flexibility is constrained by a 12-month prepayment lockout followed by yield maintenance.

Calculated underwriting metrics

Syndicated Cap Rate

5.49%

NOI ÷ offering price

Upfront Load

9.75%

Total fees ÷ offering price (all-equity offering)

Premium / Discount

—

Offering price vs. appraised value

Offering vs. Acquisition

44.7%

Offering price ÷ acquisition price

Price per Unit

—

Offering price ÷ — units

The property was acquired at an acquisition capitalization rate of 5.5% and syndicates at a 5.49% cap rate. Total offering expenses and front-end fees amount to $1,230,937.5, representing 9.75% of the $12,625,000 offering price. The acquisition price of $28,261,384 represents 100.14% parity against the $28,300,000 appraised valuation.

Sponsor

CEDARst

CEDARst is a real estate investment and development sponsor founded in 2009, with a dedicated sector focus on multifamily properties. The firm manages $4,000,000,000 in assets under management across eight states, encompassing a current portfolio of over 6,000 units stabilized and under development.

Multifamily Focus$4B AUM6,000+ UnitsFounded 2009

Portfolio

• Since inception in 2009, CEDARst has successfully developed or invested in over 65 assets totaling approximately 7,500 units across eight states. • Its current portfolio consists of over 6,000 units, stabilized and under development.

Properties owned or managed

AUM

$4,000,000,000

Across all programs

DST programs

—

Prior DST offerings

AUM in DSTs

—

DST-held assets

Team

CEDARst maintains a team of full-time investment professionals and supporting staff, whose management team and other employees will be available to the Signatory Trustee.

Disclosed headcount

Sector focus

Multifamily

Stated strategy

View Sponsor Dossier

CEDARst serves as sponsor, bringing $4,000,000,000 in assets under management with a focus on the multifamily sector. Founded in 2009, the firm has developed or invested in over 65 assets comprising approximately 7,500 units across eight states. Its current active portfolio contains over 6,000 units stabilized and under development, backed by full-time investment and management personnel.

Sponsor strengths

$4,000,000,000 in assets under management
Track record of over 65 assets and 7,500 units developed or invested since 2009
Active portfolio exceeding 6,000 units stabilized and under development

Sponsor concerns

Historical fund-level realized return track record is not disclosed
Key-person dependency details are not disclosed

The Property

The property

Single 2023-vintage five-story multifamily asset

$28,261,384 acquisition price

The Heron DST

—

The Property consists of one five-story multifamily residential building that was built in 2023.

—

$28,261,384

100.0% of portfolio

Seller: —
Property manager: CEDARst

Financing Terms

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.

Leverage profile

All-cash offering — no mortgage debt, so there is no leverage to chart.

Loan Amount

—

Term

8 years

Interest Rate

5.6%

Fixed / Variable

Fixed

Prepayment Penalty

The Loan will be closed to prepayment during the first 12 months of its term. Should the Trust prepay the Loan following this period, the Trust will pay a yield maintenance fee equal to the greater of (1) an adjusted yield of an equivalent-maturity U.S. Treasury bond plus 50 basis points and (2) 1% of the outstanding principal balance of the Loan. Toward the end of the Loan's term, this prepayment fee will terminate.

DSCR

—

Acquisition LTV

—

Offering LTV

—

Strengths

Fixed interest rate of 5.6%
8-year loan term provides medium-term financing stability

Concerns

12-month initial prepayment lockout
Yield maintenance penalty required post-lockout

Transaction Metrics

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.

Valuation ladder

Acquisition price$28.26M

Offering price$12.63M+-55.3%

Appraised value$28.30M224.2% of offering

Cap rate spread & load

Acquisition cap rate5.50%

Syndicated cap rate5.49%

1 bps of spread between acquisition and syndicated cap rate.

Upfront load (all-equity)9.75%equity = offering price

Load net of reserves2.12%

Acquisition Price

$28,261,384

Offering Price

$12,625,000

Appraised Value

The Appraiser determined an appraised market value of $28,300,000 for the Property as of February 2, 2026, based primarily on an income capitalization method using a 5.5% capitalization rate.

Upfront Load

—

Load on Equity

—

Load on Offering Price

9.75%

Acquisition Cap Rate

5.5%

Syndicated Cap Rate

5.49%

Premium / Discount

—

Appraisal / Offering %

100.14%

Less Reserves %

—

Strengths

Acquisition cap rate of 5.5%
Syndicated cap rate aligned at 5.49%

Concerns

Total acquisition cost includes $1,230,937.5 in fees and expenses

Use of Proceeds

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

$1,230,938

% of offering

9.75%

All-equity offering — load on equity equals load on offering price. · $963,501 including reserves (7.63% of offering)

Where the offering proceeds go

Acquisition Cost$30.37M240.5%

Offering Expenses$1.23M9.8%

Reserves$963K7.6%

Total fees & expenses

$1.23M

9.75% of offering

Offering expenses

$1.23M

9.75% of offering

Reserves held

$963K

7.63% of offering

Cost of Acquisition

Item	Amount	% Equity	% Offering
Title & Recording Costs	$53,036	0.42%	0.42%
Reserves (Loan Proceeds)	$62,906	0.50%	0.50%
Reserves (Master Tenant)	$900,000	7.13%	7.13%
Reserves (Lumped)	$900,000	7.13%	7.13%
Finance Expenses	$1,031	0.01%	0.01%
Total Acquisition Cost	$30,369,063	240.55%	240.55%
Total Acq. Cost (Reserves)	$30,369,063	240.55%	240.55%

Offering Expenses

Item	Amount	% Equity	% Offering
Selling Commissions	$1,230,938	9.75%	9.75%
Dealer Fee	$94,688	0.75%	0.75%
Placement Agent Fee	$2,475,000	19.60%	19.60%
O&O Expenses	$1,230,938	9.75%	9.75%
Total Offering Expenses	$1,230,938	9.75%	9.75%
Total Fees / Expenses	$1,230,938	9.75%	9.75%
Total Upfront Fees (Reserves)	$963,501	7.63%	7.63%

Strengths

$900,000 funded into master tenant reserves
$62,906 allocated to loan proceeds reserves

Concerns

Total front-end offering expenses equal $1,230,937.5

Sponsor Compensation

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.

Front-end fee composition

Dealer Fee$0.09M0.75%

Total front-end sponsor compensation$1,230,938 4.36% of acq. cost

Dealer Fee

$94,688

0.75%

Total Front-end Fees

$1,230,938

4.36%

Strengths

Property management fee standard at 3.0% of monthly gross revenue

Concerns

Annual asset management fee of $151,000 per year
Disposition fee of 3% upon asset sale

Operating & Disposition Fees

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.

Ongoing fee rates

Disposition Fee3%

Asset Mgmt Fee (annual)

$151,000

per year

Master Tenant Income

$924,000

Property Mgmt Fee

Three

of percent (3.0%) of the monthly Gross Revenue

Disposition Fee

Strengths

Master tenant income established at $924,000
Reserve allocation of $900,000 provides operational liquidity

Concerns

Property-level historical operating metrics not disclosed

Comparative Analysis

44Composite

Standing

45 of 57

Blended percentile across 11 extracted metrics.

Pricing

48th pct

Leverage

23rd pct

Cost

29th pct

Ongoing

67th pct

Structure

64th pct

Percentile profile

Pricing

Acquisition cap rateMin 4.00%Med 5.50%Max 7.53%5.50%48th

Syndicated cap rateMin 4.02%Med 5.63%Max 9.74%5.49%48th

Leverage

Interest rateMin 3.91%Med 5.11%Max 9.11%5.60%22nd

Loan termMin 1 yrsMed 10 yrsMax 36 yrs8 yrs23rd

Cost

Selling commissionMin 0.05%Med 6.00%Max 6.00%9.75%0th

Total upfront loadMin 1.96%Med 5.97%Max 12.05%9.75%19th

ReservesMin 0.11%Med 5.53%Max 18.84%7.63%68th

Ongoing

Disposition feeMin 1.00%Med 2.95%Max 7.50%3.00%43rd

Property management feeMin 2.50%Med 5.00%Max 7.00%3.00%90th

Structure

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

Hold periodMin 1 yrsMed 10 yrsMax 36 yrs8 yrs77th

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

48th pct

5.50%median 5.50%

Min 4.00%Med 5.50%Max 7.53%

Interest rate

22nd pct

5.60%median 5.11%

Min 3.91%Med 5.11%Max 9.11%

Total upfront load

19th pct

9.75%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	5.50%	5.50%	5.00% – 6.00%	0.00%	48th
Syndicated cap ratePricing	5.49%	5.63%	4.84% – 5.83%	−0.14%	48th
Interest rateLeverage	5.60%	5.11%	5.00% – 5.35%	+0.49%	22nd
Loan termLeverage	8 yrs	10 yrs	9.5 yrs – 10.5 yrs	−2 yrs	23rd
Total upfront loadCost	9.75%	5.97%	4.89% – 9.50%	+3.78%	19th
Selling commissionCost	9.75%	6.00%	5.00% – 6.00%	+3.75%	0th
ReservesCost	7.63%	5.53%	1.67% – 9.03%	+2.09%	68th
Property management feeOngoing	3.00%	5.00%	3.13% – 5.00%	−2.00%	90th
Disposition feeOngoing	3.00%	2.95%	2.00% – 3.50%	+0.05%	43rd
Equity share of capitalStructure	100.00%	97.50%	52.74% – 100.00%	+2.50%	50th
Hold periodStructure	8 yrs	10 yrs	9.5 yrs – 10.5 yrs	−2 yrs	77th

Closest comparables

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Inland Self Storage Portfolio XXII DST	Inland Private Capital Corporation	—	0.00%	—	8.40%	—	87%
Texas Active Living Portfolio II DST	Capital Square	5.65%	0.00%	—	9.65%	—	84%
JWCM Vivian DST	JWCM Exchange I, LLC	4.70%	57.90%	—	12.05%	10 yrs	83%
BR Diversified Industrial Portfolio 7 DST	BIGR Exchange 7 TRS, LLC	6.66%	0.00%	—	9.45%	10 yrs	82%
LSC Fort Washington MD DST	Livingston Street Capital, LLC	—	49.60%	1.15x	11.03%	2 yrs	82%
MCG Gainesville FL BTR DST	Madison Capital Group	—	—	1.74x	—	10 yrs	82%
Moody Village Towers DST	Moody National Companies	5.07%	37.27%	—	11.67%	—	81%

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.