DST Offering Detail

Versity Vintage DST


DST Offering Highlights

Versity Vintage DST is a 340-unit apartment community located in Winter Garden, Florida – approximately 25 minutes southwest of downtown Orlando. Constructed in 2021, Vintage Horizon West is currently 92% occupied and offers 1-, 2- and 3-bedroom floor plans ranging from 762 – 1,410 square feet. Tenants have access to a resort-style swimming pool, outdoor dining areas equipped with TVs, a coffee and wine bar, a community park with outdoor fitness equipment, and an exquisite community clubhouse. The Orlando-Kissimmee-Sanford MSA is the third largest metropolitan area in the state of Florida with a population of over 2.6 million that is projected to increase to 2.9 million by the end of 2026. The Orlando economy is led by a robust health care system as well as an internationally recognized recreation and business tourism industry. The surrounding area of Vintage Horizon West is primarily suburban and has experienced rapid population growth over the past decade. The population within a 5-mile radius of the property is forecasted to increase by 3.5% in the next five years.
Property Status: Closed Offering
Property Type: Multi-Family
Property State:  Florida
Property City:  Winter Garden
Properties: 1
Units:  340
Offering Size: $140,309,540
Equity Offering:  $87,963,540
Loan-to-Value: 37.30%
Loan Terms:  10-yr Fixed, 5-yr Interest Only at 4.56%
Cash Flow: Call to Confirm

About Versity

Located in Orange County, California, Versity is a privately held real estate investment firm specializing in student housing and multi-family assets across 22 states. Originally founded in 2007, Versity’s investment portfolio is comprised of 36 assets and has raised over $1 Billion. Versity invests in facilities throughout the country that are core pedestrian or properties designed for a market-specific population.

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.