Kay Properties and Investments, LLC today announced that one of their custom Kay Properties Delaware Statutory Trust offerings successfully went full cycle on behalf of multiple 1031 exchange and direct cash investors.
The DST investment that was sold was the Maple Springs Apartments in Richmond, VA which was a 268-unit multifamily community. For those investors that closed simultaneously on the DST investment the same day that the property was purchased, the total returns were approximately as follows:
Total return of 167%*
– which was inclusive of principal invested, appreciation and monthly distributions
Total annualized return of 15%*
– which was inclusive of monthly distributions and appreciation
Dwight Kay, CEO and Founder of Kay Properties commented, “We are pleased to have offered another Kay Properties client only custom Delaware Statutory Trust offering to our investors with a fantastic outcome. The Maple Springs Apartments DST was made available to Kay clients as a Custom DST in November 2016 and was sold at a very profitable exit on behalf of our clients in April 2021.” *
Kay continued, “This successful sale resulted in the majority of the investors doing a subsequent 1031 exchange into more Delaware Statutory Trust investments on the www.kpi1031.com investment platform. Over the years the repeat business by our clients throughout the country has been something we are especially proud of. The sale of the Maples Springs Apartments DST has been another custom Kay Properties full cycle event with satisfied Kay investors nationwide. As always, past performance is no guarantee of future results and all investors should consider the risk factors of investing in DST investments and real estate by reading the Private Placement Memorandum prior to participating in any DST offering for sale, paying careful attention to the risk factors section.” *
Chay Lapin, President of Kay Properties, remarked, “We were very pleased with the value-add investment strategy of Maple Springs DST investment for our investors. As an investor myself in Maple Springs, it was a great opportunity to have a double-digit IRR and give our investors an opportunity for upside potential. We saw the class B multifamily sector opportunity years ago and were very extremely pleased to have our team execute the business plan successfully.” *
Jason Salmon, Senior Vice President and Managing Director of Real Estate Analytics at Kay Properties, noted, “It has always been gratifying when clients return for multiple investments over time—many of our clients work with Kay Properties to divest of their real estate portfolios and diversify into multiple DSTs in separate transactions as they sell off their investment properties (it’s also a pleasure to help investors with single investment transactions to transition from active to passive real estate ownership).”
Salmon additionally stated, “It’s been especially pleasing throughout the years to see many of the real estate and DST offerings we have worked on sell at a handsome profit for our investors. Maple Springs is no exception, a DST investment for sale that was exclusively available to investors working with Kay Properties that created value for 1031 exchange and cash investors.” *
Salmon also observed, “Maple Springs DST was a fine example of a Delaware Statutory Trust real estate offering that was managed in accordance with the business plan and investors were more than satisfied with the results. My clients around the country reinvested in additional DSTs for their 1031 exchanges and I’m proud to have been able to work with them again.” *
Betty Friant, Senior Vice President at Kay Properties, reflected, “Maple Springs is typical of many of the types of DST properties we offer. Great location, upside potential, and high barriers to entry in the Richmond rental market. With the total annualized return inclusive of monthly distributions at approximately 15% (past performance does not guarantee future results), this was a nice piece of our investors’ real estate portfolio. In fact, I liked this property so much that I invested in it myself!” *
Kay concluded, “The power of the Kay Properties platform at www.kpi1031.com is that not only do investors who access the platform and register for an account receive access to the marketplace of Delaware Statutory Trust offerings from over 25 different DST sponsor companies, but they also are able to access custom Delaware Statutory Trust offerings that are only available to clients that work with Kay Properties.”
About Kay Properties and www.kpi1031.com
Kay Properties is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, full due diligence and vetting on each DST (typically 20-40 DSTs) and a DST secondary market. Kay Properties team members collectively have over 115 years of real estate experience, are licensed in all 50 states, and have participated in over 21 Billion of DST 1031 investments.
* Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.
* No representation is made that any DST investment will or is likely to achieve profits or losses similar to those achieved in the past or that losses will not be incurred on future offerings.
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. There are material risks associated with investing in real estate securities including illiquidity, vacancies, general market conditions and competition, lack of operating history, interest rate risks, general risks of owning/operating commercial and multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed.
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