Bellemeade Farms Apartments
This is a sample of a Delaware Statutory Trust offering, drawn from a past offering that is already fully subscribed and shown here for illustration. DSTs are illiquid private placements offered under Reg D to accredited investors only. The figures below are sourced from the sponsor’s Private Placement Memorandum. Year-one cash-flow, cap-rate, and DSCR figures are projections, not guarantees. Loss of principal is possible.
About this offering
The twelve apartment buildings that make up the Bellemeade Farms complex sits on over fifteen acres and makes up over 305,000 rentable Sq. Ft. Developed in 1988, the property underwent thorough renovations in 2017-18. Amenities include a clubhouse, leasing office, a business center, and a fitness center.
Key metrics
- Year 1 Cash Flow
- 5.35%
- Year 1 Cap Rate
- 5.17%
- Investor Purchase Price
- $79.44M
- Year 1 DSCR
- 2.01
- Hold Period DSCR
- 1.95
Debt structure
- Loan Amount
- —
- Lender
- —
- Program
- —
- Interest Rate
- —
- LTV
- 57.07%
- Term
- 10 years
- Interest Only
- 5 years
- Amortization
- 30 years
Specifications
- Square Feet
- 305,000
- Year Built
- 1988
- Occupancy
- 93.04%
- Strategy
- Property underwent thorough renovations in 2017-18; additional renovations planned for 115 units to grow rents.
Principal risks
- R01The year 1 growth projection (+7%) seems a little high.
- R02The Sponsor's NOI projection is 7.71% above historic NOI, which seems too aggressive given current occupancy and rent levels.
- R03The Sponsor's projections for the operating expenses are 2.4% lower than the appraisal's projection, which could cut into returns.
Property imagery
Capital Square Realty Advisors
According to the sponsor's website: "Capital Square 1031 is a national real estate investment and management company. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors."
Explore current offerings like Bellemeade Farms Apartments
This offering is fully subscribed and shown for illustration. A coordinator can introduce current offerings with a similar profile to accredited investors.