DST Offering Detail

Cantor Fitzgerald CF Westchester Multifamily DST

DST Offering Highlights

Cantor Fitzgerald Westchester Multifamily DST owns The Mark at Mamaroneck, a 229-unit multifamily property built in 1999 and renovated in 2018, currently boasting a 96.1% occupancy rate. Situated in the affluent Westchester County submarket, home to major Fortune 500 companies such as IBM, PepsiCo, MasterCard, and Regeneron Pharmaceuticals, the property is strategically located less than half a mile from the Mamaroneck light rail station, part of New York City’s underground rail system. Additionally, its prime positioning on the New England Thruway provides residents with direct access to downtown New York City. The DST has comprehensive plans and ample reserves to increase value through exterior and common area enhancements, along with the installation of smart home technology packages in individual units.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  New York
Property City:  Mamaroneck
Properties: 1
Units:  229
Offering Size: $121,030,000
Equity Offering:  $65,310,000
Loan-to-Value: 46.06%
Loan Terms:  10-yr Fixed, 10-yr Interest Only at 5.98%
Cash Flow: Call to Confirm

About Cantor Fitzgerald

Cantor Fitzgerald is a leading global financial services firm, serving clients from over 30 offices around the world. Founded in 1945 as a securities brokerage and investment bank, the firm pioneered computer-based bond trading, built one of the broadest distribution networks in the industry, and became the market’s premier dealer of government securities.

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.