NexPoint Outlook DST
Investment Description
District at Parkview Apartments represents the opportunity to invest in a newly-built, class A apartment community located in the thriving Gwinnett County, part of the Atlanta Metro. The Property benefits from its proximity to the Atlanta Metro’s major employment clusters, as well as its central location offering convenient access to surrounding areas such as Decatur, Lawrenceville, Lilburn, Snellville, and the broader Atlanta Metro region within a 30-minute drive, making it a highly desirable residential destination for professionals and families alike.
- Instant value creation, as the Property was purchased for $1,500,000 below appraised value.
- Attractive rental rate growth upside potential, with an affluent tenant base, and a 41% discount to homeownership in the area, provides significant growth potential for rental rate increases.
- Centrally located with convenient access across the entire Atlanta Metro, the Property provides proximity to large employment clusters in the booming Interstate 85 Corridor and Downtown Atlanta, all within a 30-minute drive.
- Located in the fastest growing county in the Atlanta Metro, ranked #1 in population growth since 1970, with 27% population growth over the prior 10 years.
- Limited housing availability, with forecasted housing demands of nearly 5x the current annual pace of new housing construction in Gwinnett County through 2040.
Quick Facts
Status
Available
Sponsor
NexPoint
Location
AL
Property Type
Multifamily
In-Place Loan
50% LTV
721 Exchange Exit
Optional
Minimum Investment
$100,000
Current Yield
4.44%
Average Yield
5.25%
Current Tax-Adjusted Yield
803%
Cap Rate Equivalent
7.47%
Gerald F. 'Jerry' Baker, III
Founder, Managing Principal
D 415.579.1660
M 310.905.7706
E jerry@baker1031.com
Income Forecast
Year 1
4.44%
Year 2
4.61%
Year 3
4.76%
Year 4
4.89%
Year 5
5.01%
Year 6
5.02%
Year 7
5.18%
Year 8
5.83%
Year 9
6.12%
Year 10
6.63%
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Investment opportunities presented herein are subject to immediate change and may be withdrawn without prior notice.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).
