DST Offering Detail
Carter Exchange Cypress McKinney Falls DST
DST Offering Highlights
Carter Exchange Cypress Mckinney Falls is a 264-unit apartment community located in Austin, Texas – 15 minutes south of downtown Austin. Newly constructed in 2021, Cypress McKinney Falls is currently 92.05% occupied and offers a diverse mix of 1-, 2- and 3-bedroom floor plans ranging on average from 784 – 1,331 square feet. Tenants have access to a resort-style pool, poolside cabanas and barbecues, a sizeable community clubhouse and numerous outdoor lounges. The Austin – Round Rock MSA is one of the most desirable markets in the country due to the business-friendly environment, diversified economy and an educated workforce. In the next five years, resident population within a 1-mile radius of the property is expected to increase by 16%. The DST has plans and sufficient reserves set aside to add home offices in select units and replace HVAC and appliances, add new flooring and install smart home technology in all units. The DST’s business plan is to maintain high occupancy levels through a multiplatform marketing program and enhance property performance using a revenue and lease expiration management system.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Multi-Family |
| Property State: | Texas |
| Property City: | Austin |
| Properties: | 1 |
| Units: | 264 |
| Offering Size: | $87,021,308 |
| Equity Offering: | $46,321,308 |
| Loan-to-Value: | 46.77% |
| Loan Terms: | 10-yr Fixed, 5-yr Interest Only at 3.68% |
| Cash Flow: | Call to Confirm |
About Carter Exchange
Carter Exchange is a Carter Funds company backed by a team of experts with decades of real estate investment experience and established relationships in both the broker/dealer and real estate brokerage communities. Their investment strategies center around high-growth industries, risk-adjusted returns, a commitment to excellence, and transparent communication.
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.
