DST Offering Detail

RK Properties Pointe at Prosperity Village DST


DST Offering Highlights

RK Properties Prosperity Village is a multi-family property located on the north end of Charlotte, NC. Constructed in 2018 as part of a master-planned mixed-use “community within a community”, the property provides excellent walkability to retail shops and grocery stores. The Charlotte area is the third fastest-growing metropolitan among major U.S. cities. Many large corporations including Bank of America, Duke Energy and Lowe’s are headquartered here.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  North Carolina
Property City:  Charlotte
Properties: N/A
Units:  292
Offering Size: $74,034,000
Equity Offering:  $41,360,000
Loan-to-Value: 52.34%
Loan Terms:  10-yr Fixed, Interest Only at 4.2%
Cash Flow: Call to Confirm

About RK Properties

Rance King Properties Inc. has specialized in multifamily property investments since 1976. They are a national company with current and previously owned properties acquired throughout the United States. They utilize a conservative underwriting model and lower leverage financing strategies that have allowed them to prosper throughout many business cycles. As one of the longest-tenured DST sponsors, RK Properties has experienced many full cycle offerings.

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.