DST Offering Detail

Carter Exchange Retreat at the Park DST

Multi-Family

DST Offering Highlights

Retreat at the Park DST is a 249-unit apartment community located in Burlington, NC just east of Greensboro and west of Raleigh. The property features a large resort-style clubhouse, fitness center, swimming pool, and barbecue grills. There are plans to install in-unit ceiling fans, new lighting, clubhouse interior upgrades, pool deck, resurfacing, and new luxury poolside furniture. Burlington lies adjacent to Interstate 40 which provides connectivity to many colleges including Duke University, University of North Carolina, Wake Forest University, and Elon University.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  North Carolina
Property City:  Burlington
Properties: N/A
Units:  249
Offering Size: $44,008,724
Equity Offering:  $18,708,724
Loan-to-Value: 57.49%
Loan Terms:  10-yr Fixed, 5-yr Interest Only at 3.23%
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.