Starboard Makley is a recently delivered, 140-unit Class A mixed-use community in an OSU-adjacent infill submarket of Columbus, OH, drawing on a deep university, healthcare, and public-administration renter pool. The asset carries a City of Columbus Community Reinvestment Area agreement abating 100% of the assessed-value increment for 15 years in exchange for 28 income-restricted units, financed with fixed-rate, interest-only Freddie Mac debt (52.64% LTV). The thesis is stabilization-and-optimization - closing the ~260 bp gap between in-place (91.4%) and stabilized (94%) occupancy while layering corporate-rental and resident-protection ancillary revenue under a sponsor-affiliated master lease.
178-acre infill parcel; the amenity package (clubhouse, fitness center, business center, secured bicycle storage) targets the OSU-adjacent renter cohort. 8B endowment), alongside the State of Ohio and JPMorgan Chase employment bases, the submarket draws on a deep, demographically resilient renter pool spanning university, healthcare, public-administration, and an expanding technology footprint (Battelle, regional semiconductor investment).
The asset carries a City of Columbus Community Reinvestment Area agreement abating 100% of the assessed-value increment for 15 years from certificate of occupancy in exchange for 28 income-restricted units (14 at <=80% AMI, 14 at <=100% AMI). 4%) and stabilized (94%) occupancy and layering two new ancillary revenue lines (a furnished corporate-rental program on five units via Landing/AMG and a Lloyd's-backed Resident Protection Plan netting ~$11/unit/month) under a Sponsor-affiliated master-lease structure financed with fixed-rate, interest-only Freddie Mac debt.
| Lender | Berkeley Point Capital LLC d/b/a Newmark |
| Interest Rate | 5.44% (Fixed) |
| Loan Term | 10 years |
| Interest-Only Period | 10 years |
| Total Debt | $23.7M ($23,684,000) |
| In-Place LTV | 52.64% |
| Year 1 DSCR | 1.75x |
The Community Reinvestment Area abatement is the single most consequential structural advantage: shielding 100% of the assessed-value increment from real property taxation for 15 years post-CO compresses the asset's largest non-controllable expense during the early-to-mid hold, evidenced by modeled property taxes holding near $49,000-$53,000 through Year 6 before stepping toward $163,000 by Year 10 as the benefit phases out. The 28-unit affordable set-aside (20% of unit count) is the consideration for that shield, but at <=80%/<=100% AMI bands in a supply-constrained, OSU-driven submarket the effective rent give-up is modest relative to the tax savings captured, producing an NOI uplift the Colliers appraisal explicitly capitalized into $3.75M of the $39.1M as-is value.
Submarket positioning rests on a quasi-captive demand base: proximity to a 1,764-acre OSU main campus with a large, perennially renewing student and graduate-employee population yields structurally low demand elasticity and durable absorption, while the intact, walkable urban fabric of near-north Columbus and constrained infill land supply elevate replacement-cost barriers to competing product. Franklin County's employer diversification across education, state government, healthcare, financial services (JPMorgan Chase), and a growing R&D/technology cluster (Battelle) dampens single-sector cyclicality, lending support to the 2.4%-3.0% forward rent-growth assumptions.
The financing is a defensive feature in the current rate regime: a $23,684,000 Freddie Mac Conventional Fixed Rate Program loan at a fixed 5.44% for the full ~10-year term (maturing September 1, 2035), fully interest-only with zero scheduled amortization, maximizes current distributable cash and eliminates the floating-rate and cap-renewal exposure that has impaired peer 2021-2023 vintage syndications. A $473,680 interest-rate buydown was funded at closing to achieve the coupon, and the Actual/360 convention is reflected in the ~$1.31M annual debt service, generating a Year 1 DSCR of 1.75x that expands to 2.10x by the terminal year as NOI grows against a static interest burden.
The three ground-floor commercial suites provide diversified, expense-recovering income, with tenants reimbursing their proportionate share of operating expenses, taxes, and maintenance, insulating residential cash flow from commercial cost inflation. Lease laddering is favorable: Kida House (1,945 SF) carries a long initial term to 6/30/2035 with escalations from $47,128 to $58,954 and three five-year renewal options, while Sweetly Bronzed (2,089 SF) runs to 10/31/2029 stepping to $46,906; the small commercial footprint (~6% of NRSF) limits retail-specific downside while preserving mixed-use placemaking value.
The Supplement-introduced revenue overlay is a low-capex margin enhancement: the Landing/AMG furnished corporate-rental program targets premium, higher-turnover rents on five units with limited owner capital outlay, supported by Columbus comparables generating $93,000-$105,000 of incremental owner revenue at four-to-five-unit deployments, while the Lloyd's-backed Resident Protection Plan converts a renters-insurance line into ~$11/unit/month of high-margin income with a damage-waiver benefit that also mitigates uncollected-damage leakage. Both initiatives front-load into Master Lease Year 1 with a true-up/special-distribution mechanic, accelerating the distribution ramp independent of base-rent growth.
On a micro level, the offering pairs a recently delivered, amenitized Class A asset in a high-barrier, OSU-anchored Columbus submarket with a 15-year CRA tax abatement that structurally suppresses the property's largest non-controllable expense and was directly capitalized into the third-party appraisal. The capital structure is conservative and rate-insulated (fixed 5.44% fully interest-only Freddie Mac debt for the full term with no amortization and no cap-renewal risk), producing a 1.75x going-in DSCR widening to 2.10x against a 52.64% debt-to-total-capitalization ratio. Income is diversified across 140 residential units and three expense-recovering commercial suites with laddered expirations, and the furnished-rental and resident-insurance programs add low-capex ancillary margin. Macro support includes Columbus's above-trend population growth, employer diversification across education, government, healthcare, finance, and an expanding technology base, and a prevailing market pricing that frames the in-place basis reasonably against comparable stabilized product.
Asset-specific vulnerabilities concentrate around the abatement, the maturity, and the income waterfall. The CRA abatement burns off on a schedule that drives modeled property taxes from roughly $49,000 to $163,000 by Year 10 and ~$208,000 thereafter, compressing terminal NOI precisely as a sale or refinance must occur; the benefit is also conditional on continuous compliance with the 28-unit affordable set-aside, with a clawback of 20%-90% of abated tax payable to the City's Affordable Housing Trust on any shortfall. Because the loan is 100% interest-only with zero principal reduction, the entire $23,684,000 balloon matures 9/1/2035, concentrating refinance/disposition risk into an unknowable rate environment with no amortization cushion. The distribution profile depends on a multi-tier Additional Rent/Bonus Rent breakpoint waterfall routed through a thinly capitalized Sponsor-affiliated Master Tenant (where only 85% of cash above the bonus breakpoint accrues to the Trust) and lumpy DST CapX reserve draws (~$355,000 in Year 4, ~$303,000 in Year 7, ~$594,000 in Year 10) episodically depress distributable cash. Execution risk attaches to the unseasoned Landing/AMG program (36.5% management fee, early-termination fees up to $2,500/unit on sale, and platform fees payable while AMG units sit vacant) and to closing the ~260 bp lease-up gap to stabilized occupancy. The near-north Columbus pipeline of recently delivered Class A product (single comparables of 319,562 SF and 274,000 SF) pressures concessions and rent growth, and the Sweetly Bronzed commercial lease rolls mid-hold in 2029.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
The risk-adjusted profile is that of a stabilized-core multifamily asset wrapped in a tax-advantaged DST with a modest operational-optimization overlay, appropriately Core-Plus rather than Core given residual lease-up and unseasoned ancillary revenue. Leverage economics are roughly neutral: a Year 1 NOI yield of ~5.85% on appraised value and ~6.00% on purchase price against a 5.44% fixed cost of debt implies a thin but positive going-in spread that improves as NOI compounds against static interest. The defining tension is temporal: the underwriting back-loads returns (distributions ramping 4.52%-5.77%, DSCR 1.75x-2.10x) as the tax abatement decays and an interest-only balloon matures, leaving terminal value highly sensitive to the 2034-2035 exit pricing and rate environment. Forward rent-growth assumptions of 2.4%-3.0% are defensible against Columbus's demographic and employment trajectory, but the incremental revenue from the five-unit Landing program and the resident-insurance line, while plausibly supported by third-party comparables, is not yet demonstrated at this property and represents the principal upside-case dependency. The optional Section 721 exit affords a potential tax-deferred liquidity path beyond a straight third-party sale, though it remains discretionary to the Administrative Trustee and unquantified.
The analysis below is Baker 1031's educational opinion — not investment, tax, or legal advice, a recommendation, or a guarantee, and it does not replace the offering's Private Placement Memorandum (PPM), which governs in all respects. Read the PPM and consult your own CPA and attorney before investing.
| Metric | This Offering | Market Avg. | Assessment |
|---|---|---|---|
| Avg. Income | 4.93% | 5.04% | Meets Average |
| Income Growth | 27.65% | 33.66% | Below Average |
| Peak Income | 5.77% | 5.95% | Meets Average |
Starboard Realty Advisors
Starboard Realty Advisors is an Irvine fully integrated firm, founded in 2014 and led by a CEO with prior Passco pedigree, acquiring multifamily and multi-tenant/NNN retail for 1031 clients, with more than $500 million in acquisitions and over 1,900 units. Its differentiation includes a DST Bridge Fund that supplies preferred equity, an ADU-driven multifamily value-add angle, and a disciplined 7-to-10-year stabilized hold model. The leadership lineage and integrated execution position it as a focused mid-market sponsor.
Learn More About Starboard Realty Advisors →Documents for this offering. Available to signed-in investors.
Securities offered through Aurora Securities, Inc. (CRD #46147 / SEC #8-51322), member FINRA / SIPC; Baker 1031 Investments, LLC is independent of Aurora Securities, Inc. and is not a registered broker-dealer or investment adviser. This is not an offer to sell or a solicitation of an offer to buy any security; any offer is made solely by the confidential private placement memorandum (PPM), which qualifies all information herein in its entirety. Delaware Statutory Trust interests are speculative, illiquid securities offered under Rule 506(c) of Regulation D and sold only to investors whose accredited-investor status has been verified; offering documents and subscription materials are provided only after that verification. They involve substantial risk, including possible loss of the entire investment.
Distributions, yields, the cap-rate equivalent, DSCR, occupancy, and benchmark figures are sponsor estimates or projections, are not guaranteed, and may differ materially from actual results. Any tax-adjusted yield assumes a 40% effective rate for non-1031 cash investors and is not tax advice. No tax, legal, or investment advice is provided — consult your own CPA and attorney. Past performance does not guarantee future results.