DST Offering Detail

Bluerock Everwood DST

Multifamily

DST Offering Highlights

Everwood DST is a sprawling 37 building multi-family community located in Webster, TX, just south of Houston. Everwood offers tenants many amenities including 2 swimming pools, 2 clubhouses, and a fitness center. The DST plans to utilize reserves and add value by implementing a renovation of approximately 125 units. Webster is home to two aviation powerhouse employers providing over 20,000 jobs: NASA Johnson Space Center and Boeing’s Houston branch.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  Texas
Property City:  Webster
Properties: N/A
Units:  530
Offering Size: $85,638,539
Equity Offering:  $38,233,539
Loan-to-Value: 55.11%
Loan Terms:  10-yr Fixed, 7-yr Interest Only at 3.50%
Cash Flow: Call to Confirm

About Bluerock Value Exchange

Bluerock Value Exchange is a national sponsor of syndicated 1031 exchange offerings with a focus on Class A assets that can deliver stable cash flows and have the potential for value creation. Bluerock’s senior management team has an average of over 29 years of investing experience and has helped launch leading real estate private and public company platforms.

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.