DST Offering Detail

Carter Exchange Residences at Congressional Village DST

DST Offering Highlights

Carter Exchange Residences at Congressional Village is a 404-unit multi-family property located in Rockville, Maryland – 25 minutes north of Washington, D.C. Built in 2005, The Residences at Congressional Village is 91.8% occupied as of August 2022 and offers a diverse mix of 1-, 2- and 3-bedroom floor plans ranging from 698 – 1,473 sq. ft. The DST has plans and sufficient reserves set aside to renovate unit flooring and install smart home technology packages and new appliances. Additionally, the sponsor intends to enhance the pool, clubhouse, fitness center, exterior paint and property landscaping. The Residences at Congressional Village is located in the Washington-Arlington-Alexandria Metropolitan Statistical Area (Washington MSA). Ranking sixth on the nation’s list of largest MSAs, the area provides a strong employment base led by the financial and government sectors. The area is comprised of affluent, highly educated individuals and families seeking a high quality of life. The median household income is $113,295 – within a 5-mile radius of the property. Rockville/Twinbrook is highlighted by numerous golf courses and large mixed-use developments along Rockville Pike.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  Maryland
Property City:  Rockville
Properties: 1
Units:  404
Offering Size: $127,800,487
Equity Offering:  $81,157,487
Loan-to-Value: 36.50%
Loan Terms:  10-yr Fixed, 5-yr Interest Only at 4.55%
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.