Kay Properties & Investments Announces a Successful Return for Investors in a Custom Multifamily DST Property That Goes Full Cycle*

Kay Properties announces that another Custom multifamily offering has gone full cycle to post solid returns for Kay Properties clients as the Delaware Statutory Trust offering in  Orange Park, FL has sold for $41.3 Million to a private real estate investment firm*

Key Highlights: 

  • Kay Properties & Investments takes custom multifamily DST property full-cycle 
  • Kay Properties & Investments concluded Alexander Pointe presented investors a stable, value-add investment that had good core real estate value 
  • Investment realizes a 231.9% return for investors*
  • Kay Properties & Investments is on track to have another record-breaking year of successfully completing DST 1031 investments after completing $408 million of equity placed in 2020

Kay Properties & Investments, a nationally recognized expert advisory firm in Delaware Statutory Trust 1031 investments and which operates the www.kpi1031.com marketplace for DST investments from over 25 DST sponsor companies, announced it had successfully brought one of its custom Kay Properties DST offerings full cycle on behalf of multiple 1031 exchange and cash investors. 

“Full Cycle” is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.

According to Dwight Kay, founder and CEO of Kay Properties & Investments, the property, the Alexander Pointe Apartments DST, sold for $41.3 million on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the same day that the property was purchased, realized a 231.9 percent total return on their investments, or a 35.09 percent annualized return from their DST 1031 investment*.

“We are proud to have provided another successful custom DST investment opportunity to our clients that resulted in a solid full-cycle return. While past performance does not guarantee or indicate the likelihood of future results, this particular investment is a great example of how Kay Properties clients have access to Custom DST offerings when working with us that are only available to investors working with Kay Properties. It was made available to Kay Properties clients on kpi1031.com as a Custom DST in 2017 and successfully went full cycle in September 2021. The positive return marks a significant victory for our investors and another successful outcome for the entire Kay Properties team during this record-breaking year*,” said Kay. 

Kay explained that Kay Properties & Investments offered this custom DST to 1031 exchange and direct cash investors which comprised of a 244,376 square foot 234-unit apartment community in 2017 for an investment cost of $20.4 million. The property included a large swimming pool, fitness center, clubhouse, business center, pet park, and provided tenants with large one, two, and three-bedroom units. 

Chay Lapin, president and DST specialist with Kay Properties & Investments, explained that the combination of great location with high barriers to entry and an attractive price point per unit made the Alexander Pointe Apartments DST a particularly attractive investment for Kay Properties. 

“We originally acquired Alexander Pointe Apartments five years ago because we saw there a great opportunity for a stable, value-add investment that had good core real estate value. Like all of our Delaware Statutory Trust investments found on www.kpi1031.com, Alexander Pointe Apartments DST was carefully vetted by the Kay Properties team of due diligence and analytics experts before we made it available as a custom DST to our Kay Properties investment family. Our team concluded the property’s rents were below market, the units had been recently renovated, it was in a supply constrained submarket with great access to schools, shopping centers, and medical facilities, and presented a potentially viable upside DST investment option for our investors*,” said Lapin. 

Lapin explained that this full cycle investment is particularly rewarding because it represents a significant win for Kay Properties & Investments investors, delivering a double-digit Internal Rate of Return (IRR)*. 

“We prepared a successful value-add investment strategy, and were able to deliver to our investors a tremendous IRR of over 25 percent. * While past performance is certainly no guarantee of future results, and any real estate investment comes with risks, we were pleased to successfully go full cycle and deliver upside results on behalf of our clients,” said Lapin. 

Senior Vice President with Kay Properties & Investments, Jason Salmon commented that this particular investment was an outstanding example of how an expert DST 1031 exchange advisory firm can potentially bring real value to accredited investors*.

“Alexander Pointe Apartments DST is a terrific example of a Delaware Statutory Trust real estate offering that was managed in accordance with the business plan.  Our investors were more than satisfied with the results*,” said Salmon.

Betty Friant, who also is a DST 1031 specialist and oversees the Kay Properties & Investments Washington D.C. office, explained that the Alexander Pointe Apartments DST was a typical investment opportunity that accredited investors can find on Kay Properties & Investments website*. 

“The power of the Kay Properties platform is really a valuable portal for accredited investors to investigate DST 1031 exchange properties and all-cash/debt-free investments. Thousands of accredited investors, like those who benefited from the Alexander Pointe Apartments DST investment, have registered for an account and received valuable access to the marketplace of Delaware Statutory Trust offerings from over 25 different DST sponsor companies. In addition, they are also able to access custom Delaware Statutory Trust offerings that are only available to clients that work with Kay Properties. It really is a powerful platform, and this latest full cycle investment is a great example of its usefulness to accredited investors,” Said Friant.

Kay Properties & Investments is again on track to have another record-breaking year of successfully completing DST 1031 investments after completing $408 million of equity placed on the www.kpi1031.com marketplace in 2020, which represented a solid increase over the $230 million of equity invested in 2019. 

About Kay Properties and www.kpi1031.com 

Kay Properties & Investments 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. 

*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.

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.

There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. All offerings discussed are Regulation D, Rule 506c offerings. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through Growth Capital Services, member FINRA, SIPC Office of Supervisory Jurisdiction located at 2093 Philadelphia Pike Suite 4196 Claymont, DE 19703.

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