1000 West
This is a sample of a Delaware Statutory Trust offering. 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
Passco 1000 West is an investment into a Class A multifamily apartment complex located in Charleston South Carolina. The property has a total of 240 units and has a small value add potential through minor unit upgrades.
Key metrics
- Year 1 Cash Flow
- 5.50%
- Year 1 Cap Rate
- 5.54%
- Investor Purchase Price
- $45.77M
- Offering Size
- $20.75M
- Year 1 DSCR
- 2.09
- Hold Period DSCR
- 2.02
Debt structure
- Loan Amount
- $25.02M
- Lender
- KeyBank National Association
- Program
- Fannie Mae DUS
- Interest Rate
- 4.44%
- LTV
- 54.67%
- Term
- 10 years
- Interest Only
- 5 years
- Amortization
- 30 years
Specifications
- Units
- 240
- Occupancy
- 95.00%
- Strategy
- Small value add potential through minor unit upgrades.
Market analysis
- Population
- Near 500,000 residents in the 5-mile radius
- Growth Rate
- Historically 1.76% annual population growth (2017-2021)
- New Supply
- Over 1,200 units planned to be built in the local market (~13% increase)
Principal risks
- R01The property is in an area that has ability for new construction to be completed. This will increase the competition in the local market that could affect occupancy at the subject property. The appraiser of the property stated that there are over 1,200 units that are planned to be built in the local market. This is an increase of just under 13%
- R02Passco is projecting an increase of 12% Net Operating Income compared to the trailing 12 months at the property. This is an aggressive underwriting assumption and may be hard to attain.
Property imagery
PASSCO
According to the sponsor's website: "Since 1998, Passco Companies, LLC has operated throughout all market conditions and cycles. The company has acquired over $4 billion in multifamily and commercial real estate in the United States. Since its inception, Passco Companies has become a recognized provider of investment opportunities in real estate projects.
Passco Companies is directed by a team of dedicated senior real estate professionals whose experience in the business averages 34 years, and who, collectively, have acquired over $30 billion in investment real estate projects."
Request the full offering package for 1000 West
Private Placement Memorandum and sponsor materials available to accredited investors only.