NexPoint Waterford DST

NexPoint Waterford DST presents an attractive long-term investment opportunity driven by its strong competitive positioning within the Greensboro metropolitan statistical area (“MSA”) and North Greensboro submarket, benefitting from proximity to major regional employment hubs, including aviation, aerospace, and advanced manufacturing, as well as excellent connectivity and an affordable rental profile. The Property is a differentiated, low-density asset featuring large floor plans with sunrooms (average 1,155 SF), a complete amenity package, and limited nearby competition, positioning for potentially sustained operational performance. High barriers to entry, constrained future supply, and the execution of targeted value-add strategies, including full and partial unit upgrades, smart home and valet trash implementations,repositioning, and marketing initiatives, can provide a clear pathway to enhancing occupancy, rental growth, NOI, and long-term asset value. Additionally, the surrounding market benefits from strong economic tailwinds, including JetZero’s 14,500-job aerospace expansion at Piedmont Triad International Airport and Toyota’s commitment to invest up to $10 billion in a new battery manufacturing facility in nearby Liberty, NC.

Waterford Place is a 240-unit, garden-style apartment community built in 1997, located along the scenic shores of Lake Jeanette in Greensboro’s low-density, amenity-rich submarket. The Property presents immediate upside through targeted value-add initiatives including 33 full unit upgrades, 122 partial upgrades, Smart Package and Valet Trash programs, and strategic positioning by BH Management proprietary MINT® leasing platform. Situated In a submarket anchored by aviation and aerospace industries, with strong average household incomes($130k within 1 mile, $117k within 3 miles) 1 and limited future supply, Waterford Place benefits from unparalleled connectivity to Piedmont Triad International Airport and regional employment hubs. Key investment highlights include large floor plans with sunrooms (1,155 SF avg),differentiated amenities, and proximity to major economic drivers such as JetZero’s 14,500-job announcement andToyota’s battery plant in Liberty, NC, supporting durable long-term demand.

The Sponsor plans a strategic value-add program to elevate unit finishes throughout the property. This includes partial renovations on 122 units featuring quartz countertops, shaker cabinetry, undermount sinks, nickel fixtures,and updated flooring, as well as full upgrades on 33 units including all of the above plus backsplashes, stainless steel appliances, and vinyl flooring. Additionally, washers and dryers will be added to 126 units. These initiatives are projected to support meaningful rent growth across the Property, potentially driving increased net operating income while maintaining Waterford Place’s top-of-market positioning within the Greensboro submarket.

The Greensboro MSA, located in the central Piedmont region of North Carolina, has an estimated population of roughly 795,000 people, making it one of the state’s fastest-growing mid-sized metros. Its population has continued to expand steadily in recent years, reflecting ongoing housing demand and an expanding labor pool. The region benefits from a diversified economic base, including manufacturing, healthcare, and logistics, while household incomes and housing values have shown consistent growth. Strong workforce development programs and a concentration of higher education institutions further contribute to the area’s economic resilience.

The Greensboro MSA is a core economic hub within North Carolina’s Piedmont Triad, with a population approaching 800,000 and a diverse, well-educated labor force. The metro benefits from a balanced mix of advanced manufacturing,healthcare, and professional services, supported by strong educational institutions and regional infrastructure. Steady Population growth, employment stability, and industry diversification continue to position the Greensboro MSA as an attractive market for multifamily investment.

⁴Sponsor'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.

⁵The "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).

NexPoint Waterford DST

Investment Overview

Investment Highlights

Quick Facts

Contact

Income Forecast