Fortress FREX DM Series I DST
Investment Description
Domain at Town Centre is a 2012 vintage, stabilized 336-unit, 912-bed purpose-built student housing property serving West Virginia University (“WVU”). The property is located one mile from WVU’s campus and directly next to a main retail center, making it one of the best non-walkable student housing accommodations for WVU.
- Domain at Town Centre has been institutionally owned for nearly 10 years and is expected to require minimal capital expenditures
- The Property is currently 93% occupied for the 2025/2026 academic year and is already 73% pre-leased for the 2026/2027 academic year, with over four months of leasing still remaining.
- The West Virginia Governor tasked WVU with drastically growing enrollment. WVU recently hired a new President and a new Enrollment Director who dramatically increased enrollment in their prior positions.
- Many developers do not target the Morgantown market due to relatively low market rents and lack of buildable sites. There has been no new supply built since 2016 and there is no new supply in the pipeline. WVU houses about 5,249 students on campus, leaving 18,394 in need of off-campus housing; with only 6,700 off-campus beds available, WVU’s total enrollment of 23,643 creates a shortfall of roughly 11,694 students, equating to a capture rate of ~57%.
- Fortress is a highly diversified global investment manager across a range of credit and real estate strategies. Fortress delivers local expertise with a global perspective in 13 office locations worldwide. We believe that the depth and breadth of our resources—our intellectual capital, investment, origination, asset management and servicing capabilities, and our time-tested and disciplined processes—distinguish and differentiate our business.
Quick Facts
Status
Coming Soon / Under Review
Sponsor
Fortress
Location
WV
Property Type
Student Housing
In-Place Loan
47% LTV
721 Exchange Exit
Unclear
Minimum Investment
$100,000
Current Yield
5%
Average Yield
6.24%
Est. Y1 Tax-Adjusted Yield¹
8.1%
Cap Rate Equivalent
7.95%
Gerald F. 'Jerry' Baker, III
Founder, Managing Principal
D 415.579.1660
M 310.905.7706
E jerry@baker1031.com
Income Forecast
Year 1
5%
Year 2
5.48%
Year 3
5.76%
Year 4
5.49%
Year 5
5.85%
Year 6
6.2%
Year 7
6.58%
Year 8
6.96%
Year 9
7.35%
Year 10
7.69%
Analyst Notes
No analyst notes available.
Property images depicted may not be pictures of properties in any current offering and may be representative.
Investment opportunities presented herein are subject to immediate change and may be withdrawn without prior notice. Availability is fluid and often fluctuates rapidly; an offering may close before updated notification is provided. Investors are strictly advised to contact their authorized representative to confirm the current status of any investment prior to committing funds.
The information provided above is for summary purposes only and may be incomplete, outdated, or contain technical inaccuracies. This summary is qualified in its entirety by, and should be read in conjunction with, the relevant Private Placement Memorandum (PPM) and all associated supplements. Prospective investors must rely solely on the PPM and formal offering documents when evaluating the merits and risks of an investment.
¹Sponsor's Cost Segregation analysis is currently incomplete; therefore, to estimate depreciation benefits, it is assumed the investor is in a 40% combined marginal tax bracket with no current depreciation basis in the property outside of this investment. Average income shielding for this DST is estimated at 45% based on standard IRS straight-line depreciation recovery periods for commercial real estate (39 years), as detailed in this Commercial Real Estate Depreciation Guide. Please refer to the Private Placement Memorandum (PPM) for specifics regarding a cost segregation; notably, even if the Trust does not perform a property-wide study, an individual investor may have the right to commission a private cost segregation study for their specific fractional interest to potentially unlock accelerated or "bonus" depreciation through a change in accounting method.
²The "Net-Adjusted Equivalency Cap Rate" is a comparative metric designed to normalize the returns of an all-inclusive Delaware Statutory Trust (DST) against a direct-ownership Net Lease (NNN) property. This metric is calculated by "reversing" a target cash-on-cash return to reconstruct a required Net Operating Income (NOI), adding back debt service and amortizing estimated acquisition, financing, and disposition "friction" costs over a 10-year holding period. This calculation is provided for educational and illustrative purposes only and is not a guarantee of future performance or an offer to sell securities. Limitations include the reliance on generalized market assumptions; individual property performance, actual interest rates, and specific transaction costs will vary. This should not be used as the primary basis for any investment decision. Estimates are derived from the following industry benchmarks: Acquisition Costs (2.5% - NAR Commercial), Loan Fees (1.0% - CREFC Guidelines), Sale Costs (6.0% - Altus Group), and Debt Assumptions (6.5% Interest/30-Yr Amort. - Select Commercial).
