NexPoint Outlook DST

Investment Overview

NexPoint Outlook DST presents an attractive long-term investment opportunity driven by its strong competitive positioning within the Birmingham MSA and Southeast Birmingham submarket, benefitting from proximity to major regional healthcare and employment hubs, the high-growth 280 Corridor, an affordable rental profile, and a robust amenity package. With exceptional connectivity and limited comparable competition in the immediate area, the property is well-positioned for sustained operational performance. High barriers to entry, constrained future supply, and the execution of targeted capital improvements, proactive asset management, and strategic value-add initiatives provide a clear pathway to enhancing both operating performance and long-term asset value.

Investment Highlights

• NexPoint Outlook DST presents an attractive long-term investment opportunity driven by its strong competitive positioning within the Birmingham metropolitan statistical area (“MSA”) and Southeast Birmingham submarket, benefitting from proximity to major regional healthcare and employment hubs, the high-growth 280 Corridor, an affordable rental profile, and a robust amenity package. With exceptional connectivity and limited comparable competition in the immediate area, the property is well-positioned for sustained operational performance. High barriers to entry, constrained future supply, and the execution of targeted capital improvements, proactive asset management, and strategic value-add initiatives provide a clear pathway to enhancing both operating performance and long-term asset value.

• The Birmingham MSA is seventh amongst the 150 largest US metros for percent increase in millennial residents. The average age in the metropolitan statistical area is 35.7 years old. According to the Bureau of Labor Statistics, the metropolitan statistical area boasts an unemployment rate of 2.5% which is 1.8% lower than the national average. With major employers including The University of Alabama at Birmingham, AT&T, Honda, BBVA Compass, Vulcan Materials Company, Regions Financial and Brookwood Baptist Health and a thriving, young professional demographic the Birmingham MSA has a strong diversified labor market.

• The Outlook at Greystone is a 300-unit, Class A garden-style apartment community located in one of Birmingham’s most affluent and supply-constrained submarkets. Built in 2008, the Property offers immediate renovation upside through a targeted value-add program. Situated on approximately 26 acres, Outlook at Greystone benefits from exceptional accessibility via Highway 280 (68,000 VPD) and State Route 119. The surrounding neighborhood boasts strong renter demographics, with an average home value of $615,000 and a median household income of $128,000 within a one-mile radius.

• The Sponsor intends to take strategic value-add initiatives to bring most of the remaining units to the level of the premium upgrade, which includes partial renovations which include adding quartz countertops, undermount sinks, shaker cabinets, and nickel fixtures to 185 units. Additionally, the Sponsor intends to fully renovate 38 units, which includes adding stainless steel appliances, backsplashes, quartz countertops, replacing of bedroom carpet with vinyl flooring, updating lighting, adding shaker cabinets, adding undermount sinks, and adding nickel fixtures. Finally, the Sponsor intends to add washers and dryers to 126 units. The full renovation, partial renovation, and addition of washers and dryers are projected to drive a monthly rent increase of $186, $103, and $45 and achieve an estimated 14%, 22.5%, and 51.5% annualized ROI. Additional funding from the Supplemental Trust Reserve will support ongoing improvements, ensuring The Outlook at Greystone continues to maintain its premier, top-of-market position.

• Based in Dallas, Texas, NexPoint is a multibillion-dollar integrated alternative asset manager. NexPoint has extensive real estate experience, having completed $15.5 billion in gross real estate acquisitions and currently managing $4.9 billion of multifamily assets as of June 30, 2025, inclusive of affiliates. NexPoint deep roots in multifamily have served as the foundation for its DST/1031 Exchange business and enabled the firm to meet the rising investor demand for tax-advantaged real estate offerings.

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