DST Offering Detail

Cantor Fitzgerald Railway Multifamily DST

Multi-Family

DST Offering Highlights

Railway Multifamily DST is a 417 unit multi-family property located in Naperville, IL, about 35 miles west of downtown Chicago. The property, named Railway Plaza, was constructed in 2000 and received interior renovations in 2011-2014. In 2019, two-thirds of the units were upgraded with new kitchen cabinets, quartz countertops, tile backsplashes, and new lighting fixtures. There are also plans to upgrade to in-unit technology packages and make enhancements to community amenities. Naperville is home to large-scale employers like Nokia and BP, which employ 5,000 residents.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  Illinois
Property City:  Naperville
Properties: N/A
Units:  417
Offering Size: $107,623,000
Equity Offering:  $46,550,000
Loan-to-Value: 56.75%
Loan Terms:  10-yr Fixed, 5-yr Interest Only at 3.71%
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, Cantor Fitzgerald is known for its strength across a diverse array of businesses, including equity and fixed income capital markets, investment banking, commercial real estate finance and services, prime brokerage, asset management and wealth management, and e-commerce and online ventures.

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.