Starboard Makley DST

Overview

Makley Place is a recently delivered, six-story Class A mixed-use asset at 210 West 5th Avenue in Columbus, Ohio (43201), comprising 140 studio/one-/two-bedroom residential units across ~102,768 NRSF, three ground-floor commercial suites totaling ~6,128 NRSF, and 111 parking spaces on a 1.178-acre infill parcel; the amenity package (clubhouse, fitness center, business center, secured bicycle storage) targets the OSU-adjacent renter cohort. Sited ~2.5 miles north of the Columbus CBD and proximate to The Ohio State University (Franklin County's largest employer, with a ~$6.8B endowment), alongside the State of Ohio and JPMorgan Chase employment bases, the submarket draws on a deep, demographically resilient renter pool spanning university, healthcare, public-administration, and an expanding technology footprint (Battelle, regional semiconductor investment). The asset carries a City of Columbus Community Reinvestment Area agreement abating 100% of the assessed-value increment for 15 years from certificate of occupancy in exchange for 28 income-restricted units (14 at <=80% AMI, 14 at <=100% AMI). The operating thesis is stabilization-and-optimization: closing the ~260 bp gap between in-place (91.4%) and stabilized (94%) occupancy and layering two new ancillary revenue lines (a furnished corporate-rental program on five units via Landing/AMG and a Lloyd's-backed Resident Protection Plan netting ~$11/unit/month) under a Sponsor-affiliated master-lease structure financed with fixed-rate, interest-only Freddie Mac debt.

Investment highlights

• The Community Reinvestment Area abatement is the single most consequential structural advantage: shielding 100% of the assessed-value increment from real property taxation for 15 years post-CO compresses the asset's largest non-controllable expense during the early-to-mid hold, evidenced by modeled property taxes holding near $49,000-$53,000 through Year 6 before stepping toward $163,000 by Year 10 as the benefit phases out. The 28-unit affordable set-aside (20% of unit count) is the consideration for that shield, but at <=80%/<=100% AMI bands in a supply-constrained, OSU-driven submarket the effective rent give-up is modest relative to the tax savings captured, producing an NOI uplift the Colliers appraisal explicitly capitalized into $3.75M of the $39.1M as-is value.
• Submarket positioning rests on a quasi-captive demand base: proximity to a 1,764-acre OSU main campus with a large, perennially renewing student and graduate-employee population yields structurally low demand elasticity and durable absorption, while the intact, walkable urban fabric of near-north Columbus and constrained infill land supply elevate replacement-cost barriers to competing product. Franklin County's employer diversification across education, state government, healthcare, financial services (JPMorgan Chase), and a growing R&D/technology cluster (Battelle) dampens single-sector cyclicality, lending support to the 2.4%-3.0% forward rent-growth assumptions.
• The financing is a defensive feature in the current rate regime: a $23,684,000 Freddie Mac Conventional Fixed Rate Program loan at a fixed 5.44% for the full ~10-year term (maturing September 1, 2035), fully interest-only with zero scheduled amortization, maximizes current distributable cash and eliminates the floating-rate and cap-renewal exposure that has impaired peer 2021-2023 vintage syndications. A $473,680 interest-rate buydown was funded at closing to achieve the coupon, and the Actual/360 convention is reflected in the ~$1.31M annual debt service, generating a Year 1 DSCR of 1.75x that expands to 2.10x by the terminal year as NOI grows against a static interest burden.
• The three ground-floor commercial suites provide diversified, expense-recovering income, with tenants reimbursing their proportionate share of operating expenses, taxes, and maintenance, insulating residential cash flow from commercial cost inflation. Lease laddering is favorable: Kida House (1,945 SF) carries a long initial term to 6/30/2035 with escalations from $47,128 to $58,954 and three five-year renewal options, while Sweetly Bronzed (2,089 SF) runs to 10/31/2029 stepping to $46,906; the small commercial footprint (~6% of NRSF) limits retail-specific downside while preserving mixed-use placemaking value.
• The Supplement-introduced revenue overlay is a low-capex margin enhancement: the Landing/AMG furnished corporate-rental program targets premium, higher-turnover rents on five units with limited owner capital outlay, supported by Columbus comparables generating $93,000-$105,000 of incremental owner revenue at four-to-five-unit deployments, while the Lloyd's-backed Resident Protection Plan converts a renters-insurance line into ~$11/unit/month of high-margin income with a damage-waiver benefit that also mitigates uncollected-damage leakage. Both initiatives front-load into Master Lease Year 1 with a true-up/special-distribution mechanic, accelerating the distribution ramp independent of base-rent growth.

Sponsor

This offering is sponsored by Starboard Realty Advisors. Baker 1031 Investments is independent of the sponsor and provides advisory and brokerage services to accredited investors.