DST Offering Detail

Inspired Senior Living of Dartmouth DST

DST Offering Highlights

Inspired Healthcare Capital Inspired Senior Living of Dartmouth DST is a 78-unit senior living community located in Dartmouth, Massachusetts. Built in 2004, the property, named The Residence at Cedar Dell, underwent renovations in 2014 with new luxury amenities including new flooring in all of the units and common areas and the addition of an elevator, a bistro, pub, and casual dining areas. Currently, The Residence at Cedar Dell is 97% occupied and offers studio, 1-bedroom and 2-bedroom units ranging on average from 454 – 759 square feet.
Property Status: Closed Offering
Property Type: Senior Housing
Property State:  Massachusetts
Property City:  Dartmouth
Properties: 1
Units:  78
Offering Size: $25,432,031
Equity Offering:  $25,432,031
Loan-to-Value: 0%
Loan Terms:  No Debt
Cash Flow: Call to Confirm

About Inspired Healthcare Capital

Inspired Healthcare Capital (IHC) is a privately held real estate investment firm specializing in senior housing investments. Since its founding in 2016, IHC has acquired, developed and financed over $1.5 billion across a portfolio of 33 assets located in 14 states. IHC acquires projects with historically strong occupancies offering specific care options, including independent living, assisted living and memory care. After acquisition, the sponsor executes a full property rebrand highlighted by the implementation of their senior housing management affiliate Volante.

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.