DST Offering Detail
NexPoint Buffalo DST
DST Offering Highlights
NexPoint Buffalo DST is a 216-unit apartment community located in the Summerlin area of Las Vegas, Nevada – 10 minutes west of downtown. Newly constructed in 2021, Ely at Buffalo is currently 92% leased and is in the final stages of its initial lease-up period. The gated community offers 1-, 2- and 3-bedroom floor plans ranging from 576 – 1,425 square feet. Tenants have access to Las Vegas style amenities including a resort-style pool and hot tub, numerous outdoor lounges equipped with fire pits and hammocks and a luxurious resident clubhouse with a fitness center, a game room and a bar/lounge. The Las Vegas metropolitan area is booming yet again after a major bounce back from being one of the hardest-hit cities during the COVID-19 pandemic. Las Vegas’s economy not only has local tourism, but businesses that support international tourism within the casino industry. Additionally, there is a strong medical and technology presence in the desert. Over the past decade, technology companies such as Amazon, Zappos and Switch Inc. (a publicly traded data and cloud computing company) have opened regional hubs in the MSA, attracting highly educated, well-paid employees.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Multi-Family |
| Property State: | Nevada |
| Property City: | Las Vegas |
| Properties: | 1 |
| Units: | 216 |
| Offering Size: | $91,607,314 |
| Equity Offering: | $54,531,314 |
| Loan-to-Value: | 40.47% |
| Loan Terms: | 10-yr Fixed, 10-yr Interest Only at 3.52% |
| Cash Flow: | Call to Confirm |
About NexPoint
NexPoint is an alternative investment platform comprised of a group of investment advisers and sponsors, a broker-dealer, and a suite of related investment vehicles. Since NexPoint’s inception in 2012, the NexPoint platform has acquired $13.2 billion of gross real estate assets across several real estate sectors, including multifamily, single-family rental, self-storage, hospitality, office, industrial, retail and life sciences
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.
