DST Offering Detail

Moody RI SW Austin DST

DST Offering Highlights

Moody Residence Inn SW Austin DST consists of a hotel property located in Austin, Texas – 10 minutes southwest of the downtown core. Residence Inn SW is positioned in the western portion of the South Austin/Airport submarket, which has immediate access to Austin-Bergstrom International Airport. The property operates as a Residence Inn, which offers standard stay and extended stay options for guests as part of the Marriott Bonvoy network of hospitality properties. Built in 2017, the 4-story structure consists of 108 guest suites equipped with full kitchens. Guests have access to an outdoor pool and hot tub, a fire pit with outdoor seating and barbecues, a fitness center, a large meeting hall, guest laundry, and a complimentary self-service breakfast. The property is located in the Austin – Round Rock MSA, one of the most desirable markets in the country due to the business-friendly environment, diversified economy and an educated workforce.
Property Status: Closed Offering
Property Type: Hospitality
Property State:  Texas
Property City:  Austin
Properties: 1
Units:  108
Offering Size: $40,040,000
Equity Offering:  $40,040,000
Loan-to-Value: 0%
Loan Terms:  No Debt
Cash Flow: Call to Confirm

About Moody

Moody National Companies is headquartered in Houston, TX. Founded in 1996, Moody is sponsor of both public and private real estate programs. Moody National Realty Company provides the complete spectrum of commercial real estate brokerage services including leasing, acquisition, disposition, marketing and consulting. Moody National Management, L.P. specializes in management of Class A, Class B and Class C multi-family apartments and hospitality assets. The firm prides itself on their approach as an analytic-based company that acquires properties with the greatest opportunity to increase Net Operating Income, thereby maximizing value and return for investors.   

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.