Kay Properties is Pleased to Announce Another Successful Return for Investors in a Custom, Debt-Free DST That Goes Full Cycle

Kay Properties announced another DST offering exclusively through Kay has gone full cycle to post solid returns for investors as the Delaware Statutory Trust offering in Tacoma, WA has sold for $9.9 million

Key Properties, the nation’s leading Delaware Statutory Trust 1031 advisory specialist firm,had successfully brought one of its custom debt-free DST investments full cycle on behalf of a group of accredited 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 & CEO of Kay Properties, the property, Tacoma Data Center DST, sold for $9.9 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 117.5 percent total return on their investments.

“We are proud to have provided another successful DST investment opportunity to our clients that resulted in a 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 does everything it can to find investments that have a lower risk profile and are resilient to pandemics and recessions,” said Kay.

As a result, investors were provided uninterrupted monthly distributions throughout the hold period and throughout the COVID-19 pandemic.

“This is noteworthy because many DST offerings by other firms were not able to provide investors distributions during the pandemic. In this case, investors distributions were uninterrupted as the investment performed exactly as projected in the Private Placement Memorandum (PPM). We were able to provide our investors with a full cycle liquidity event and profitable sale all while maintaining the low-risk profile of an all-cash/debt-free investment,” said Kay.

According to Chay Lapin, President of Kay Properties, the Debt Free Tacoma Data Center DST was acquired in 2019 for a total investment cost of $8.3 million via direct cash investors.

“When we acquired the Tacoma Data Center DST in 2019, it was 100 percent leased to a Fortune 500 company. It was a mission critical data center facility that housed data center operations for the company’s entire West Coast operations. The three-story, 22,000 square foot building sat on 7,320 square feet of land and was located in the Greater Seattle-Tacoma region, a steadily growing data center market and tax-free state. It is a terrific example of a DST real estate offering that was managed in accordance with our carefully structured business plan. Our investors are very satisfied with the results*.

Following the successful sale of the Tacoma Data Center DST, many of the original investors reinvested into other debt-free DST investments offered through Cove. In recent years, DSTs have become a popular choice for exchangers looking to reinvest sales proceeds into net-leased properties that can potentially provide a steady stream of income without property management responsibilities.

*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.

*The total return represents the total sales proceeds and distributions through the life of the asset, net of fees. No representation is made that any 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.