NexPoint Marina DST
Investment Description
- Marina assets benefit from strong structural tailwinds, including constrained waterfront development, high barriers to entry, andsust ained participation in recreational boating nationwide. When paired with professional management and multiple ancillary revenue sources, marinas have demonstrated the ability to generate stable cash flow with attractive downside protection.
- Unlike many traditional real estate sectors, marinas benefit from diversified, non-rent revenue streams, which can materially enhance NOI and reduce reliance on a single income source. These ancillary revenue streams allow marina operators to grow NOI through operational initiatives—not just rent increases—creating multiple levers for cash flow growth.
- Industry surveys routinely report marina occupancy rates in the upper-80% to mid-90% range, particularly for destination and recreational marinas. For example, Grafton Harbor’s average tenant length of stay of approximately 4.1 years highlights the durability of demand at destination marinas.
- Eufaula Cove Marina, one of the Properties held within the Offering, is a full-service destination marina located on Lake Eufaula in Eufaula, Oklahoma, the largest lake entirely within the state. The marina features an extensive dock system with a broad mix of in-water slips designed to accommodate a range of recreational boats, supported by recently refloated docks and the addition of new slips to meet strong demand. Eufaula Cove Marina offers a comprehensive suite of amenities, including on-site fuel services, food and beverage operations, retail offerings, and marine services, positioning the property as a premier recreational hub on the lake. The Eufaula Property benefits from consistently high occupancy, strong local and regional boating demand, and multiple ancillary revenue streams, reinforcing its role as a well-established and highly utilized waterfront destination.
- Grafton Harbor is a full-service destination marina located along the northern shore of the Mississippi River near its confluence with the Illinois River, one of the most trafficked and iconic boating corridors in the United States. Positioned approximately 38 miles north of the St. Louis metropolitan statistical area (“STL MSA”), the Grafton Property serves as a highly visible and accessible stop for regional and transient boaters navigating the Mississippi–Illinois River system. The Grafton Property benefits from strong tourism demand, limited competitive supply, and a reputation as a premier hospitality-oriented marina position throughout the investment period.
Quick Facts
Status
Available
Sponsor
NexPoint
Location
IL, OK
Property Type
Specialty
In-Place Loan
0% LTV
721 Exchange Exit
Optional
Minimum Investment
$100,000
Current Yield
7.01%
Average Yield
7.98%
Current Tax-Adjusted Yield
871%
Cap Rate Equivalent
9.03%
Gerald F. 'Jerry' Baker, III
Founder, Managing Principal
D 415.579.1660
M 310.905.7706
E jerry@baker1031.com
Income Forecast
Year 1
7.01%
Year 2
7.26%
Year 3
7.45%
Year 4
7.47%
Year 5
7.5%
Year 6
7.6%
Year 7
8.21%
Year 8
8.6%
Year 9
8.96%
Year 10
9.7%
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).
