DST Offering Detail
Beacon Real Estate Group Beacon Enterprise Mill DST
DST Offering Highlights
Beacon Real Estate Group Beacon Enterprise Mill DST is a mixed-use residential, office and retail property located in Augusta, Georgia. Renovated in 1999, Enterprise Mill comprises of 60 residential lofts and 120,000 square feet of office space amongst seven buildings. The property is designated as a National Historic Landmark, LEED Certified Gold, and contains event rental space popular for private events and weddings throughout the year. Tenants of both residential and office units have access to an on-site cafeteria featuring catering services, a fitness center and 24-hour security. Enterprise Mill residences are currently 97.8% occupied and offer a diverse mix of studio, 1-,2- and 3-bedroom floors plans ranging on average from 617 – 1,493 square feet. Units are designed with a combination of modern aesthetic and vintage details including exposed brick, natural hardwood flooring and vaulted ceilings. The Enterprise Mill office space is currently 93.9% occupied with a tenant mix consisting of 40 companies and a weighted average remaining lease term of 2.34 years.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Mixed-Use |
| Property State: | Georgia |
| Property City: | Augusta |
| Properties: | 1 |
| Units: | 60 |
| Offering Size: | $29,209,469 |
| Equity Offering: | $16,009,469 |
| Loan-to-Value: | 45.19% |
| Loan Terms: | 10-yr Fixed, 10-yr Interest Only at 4.05% |
| Cash Flow: | Call to Confirm |
About Beacon Real Estate Group
Beacon Real Estate Group is a privately held real estate investment firm specializing in multifamily, office and retail investments. Over its three years of operations, Beacon has successfully secured a portfolio of over $685 million of assets under management, totaling approximately 10,000,000 square feet of commercial real estate. Beacon acquires projects with historically strong occupancies with high-quality tenants located in the southeastern United States and Texas. Headquartered in Miami, Florida, Beacon and its affiliates have more than 50 years of continuous experience through their predecessor firms in the commercial real estate industry.
Benefits of a Delaware Statutory Trust
Delaware Statutory Trusts are a popular 1031 Exchange replacement property option that allows for fractional ownership of high-quality institutional properties acquired by and managed by large real estate firms, referred to as DST sponsors. DSTs provide a unique and flexible solution to investment property owners who want to defer tax and continue to own investment property without the management requirements of directly owned property. Below are some of the benefits of investing in DST real estate.
- Tax Savings: DSTs allow for the deferral of federal capital gains tax, state capital gains tax, net investment income tax, and depreciation recapture tax. The tax savings can be significant, especially in states where the potential tax liability can be as high as 42%.
- Monthly Income Potential: DSTs are structured with an emphasis on cash flow for investors and typically include high-quality institutional property.
- Eliminate Active Property Management: Ownership of a DST is entirely management free.
- Eliminate Tax for Estate Beneficiaries: DSTs allow for a “step-up in basis” upon the passing of an owner (elimination of Capital Gains, Depreciation Recapture, and Net Investment Income Tax).
- Low-Cost Non-Recourse Debt Matching: Most investors have debt that must be matched in their exchange, therefor many DSTs are structured with debt in place.
- Low Risk of a Failed 1031 Exchange: Extensive DST property due diligence is prepared in advance and DST closings can occur quickly – in a matter of days.
DST Risks
DSTs offer many benefits however they are not suitable for everyone and come with risks. Therefore, DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following considerations: Lack of liquidity, timing of exit, lack of control, and interest rates can affect financing, leasing, and appreciation. Additionally, loan modifications may not always be possible, cash flow is not guaranteed, and projected appreciation may not occur. There are also management costs and fees associated with owning DSTs which are disclosed in the prospectus. While not a precisely defined term, a high grade, institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.
