DST Offering Detail
Moody Rainey DWTN Austin DST
DST Offering Highlights
Moody Rainey DWTN Austin DST consists of a hotel property located in Austin, Texas – 1 mile from Texas’s capital building. The property operates as a Homewood Suites, which offers standard stay and extended stay options for guests as part of the Hilton network of hospitality properties. Built in 2019, the 17-story structure consists of 150 guest suites. Suites are equipped with full-sized kitchenettes and include refrigerators, dishwashers, stoves and a dining area. Guests have access to a rooftop pool, fitness center, large meeting hall, guest laundry and complimentary breakfast with additional dining and entertainment options within walking distance.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Hospitality |
| Property State: | Texas |
| Property City: | Austin, Texas |
| Properties: | 1 |
| Units: | 150 |
| Offering Size: | $87,200,000 |
| Equity Offering: | $87,200,000 |
| Loan-to-Value: | 0% |
| Loan Terms: | No debt. |
| Cash Flow: | Call to Confirm |
About Moody
Moody National Realty Company, L.P., was formed in Texas in 1996 to sponsor public and private real estate programs. Moody National Realty Company provides a complete spectrum of commercial real estate brokerage services including leasing, acquisition, disposition, marketing and consulting services. Moody National Management, L.P. specializes in managing Class A, Class B and Class C multi-family apartment properties and hospitality assets. The firm prides itself on being a math based company and believes by selecting properties with the greatest propensity, they are able to increase net operating income in the shortest amount of time, thereby maximizing value and return.
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.
