DST Offering Detail

Livingston Street Capital LSC Reno NV DST

DST Offering Highlights

Livingston Street Capital LSC-Reno NV DST consists of a 131-unit age-restricted independent living community located in Reno, NV – 15 minutes southeast of downtown Reno. Constructed in 2020, the property, Mountain Lakes Estates is currently 96.9% occupied. The neighborhood provides residents with a suburban lifestyle and easy access to a nearby Interstate that runs throughout Reno. Near the property are numerous recreational and entertainment options including walking trails, municipal parks, golf courses, large shopping malls and casinos. Additionally, the property is a 5-minute drive from the Northern Nevada Medical Center. Residents are adjacent to a commercial corridor featuring grocery stores, sit down and fast casual dining, lodging and retail shopping.
Property Status: Closed Offering
Property Type: Senior Housing
Property State:  Nevada
Property City:  Reno
Properties: 1
Units:  131
Offering Size: $43,462,000
Equity Offering:  $21,670,000
Loan-to-Value: 50.14%
Loan Terms:  10-yr Fixed, 10-yr Interest Only at 6.48%
Cash Flow: Call to Confirm

About Livingston Street Capital

Livingston Street Capital is a commercial real estate private equity firm headquartered in Pennsylvania. Their investment focus includes residential sectors like active adult communities, independent living properties, as well as mission-critical/strategic properties led by a leadership team boasting over 75 years of combined real estate and capital markets experience.

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.