DST Offering Detail

Valeo Vineyard Pearland DST

Sr. Housing

DST Offering Highlights

Vineyard Pearland DST consists of 9.6 acres of entitled development land located in Pearland TX, an affluent area in the Houston area. The DST currently holds a 50-year income-producing land lease to a developer that plans to construct a 199-unit senior community offering independent personalized living, assisted living, and memory care to its residents. Amenities will include a fitness room, theater, card room, and gardens throughout. Located 15 miles southeast of the Texas Medical Center, the Pearland senior community has access to some of the world’s top medical experts. The Texas Medical Center is home to over 60 medical institutions complete with 21 full-scale hospitals.
Property Status: Closed Offering
Property Type: Senior Housing
Property State:  Texas
Property City:  Pearland
Properties: N/A
Units:  199
Offering Size: $21,000,000
Equity Offering:  $21,000,000
Loan-to-Value: 0.00%
Loan Terms:  No Debt
Cash Flow: Call to Confirm

About Valeo

Headquartered in North Carolina, Valeo Groupe Americas develops, builds, and operates student and senior housing communities that make a positive impact on people and the planet. Valeo Groupe is the parent company for global niche housing companies growing leading communities for students and seniors in the Americas, Europe, and Nordics.

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.