Los Angeles, CA – Kay Properties & Investments, a leading national real estate wealth management firm specializing in Delaware Statutory Trust (DST) 1031 exchange offerings, today announced the addition of the “Texas Build-to-Rent 97 DST”, a Regulation D Rule 506c offering, to its exclusive online marketplace. This newly constructed 83-unit single-family rental community in San Antonio, Texas, acquired entirely free of debt, presents accredited investors with a potentially compelling opportunity to participate in a unique residential asset class.
According to Dwight Kay, CEO and Founder of Kay Properties, this unique asset was purchased by the DST sponsor company as a Delaware Statutory Trust offering for 1031 exchange and direct cash investors.
A Trophy Asset with Strong Fundamentals
The New Build-to-Rent 97 DST Offering Features the Following Potential Benefits
- Debt-Free Acquisition: Because the asset was acquired without debt, the sponsor firm was able to purchase the asset below appraised value.
- Sponsor Co-Investment: The sponsors principals are co-investing alongside DST investors demonstrating the sponsors belief in the offering.
- Potential Inflation Hedge: Like all multifamily residential assets, this Build-to-Rent offering has the potential for annual rent rate increases, creating the opportunity for Net Operating Income growth potential and a way to potentially help offset inflationary pressures.
- Fully Optional 721 UPREIT Exit: This Build-to-Rent 97 DST offering provides investors the possibility of using a fully optional 721 exchange rollup exit strategy. Because this conversion is discretionary, it allows investors the opportunity to evaluate key UPREIT terms.
Why Build-to-Rent?
According to Kay, the Build-to-Rent (BTR) model has become increasingly popular as homeownership becomes more difficult for young families to attain due to rising prices and high interest rates. As a result, the single-family home rental option is becoming an attractive option to not only young families but also empty nesters.
“The BTR concept is quickly being embraced by renters and investors. For renters, they like the idea of renting a single-family home in a new housing community and having the privacy and space not typically seen in an apartment community. On the other hand, investors like the BTR model because typical residents at BTR communities have a much longer tenure at BTR properties than a typical apartment community. This potentially lowers unit turnover and maintenance costs which often means more of the rental income potential is able to drop to the investors bottom line,” said Kay.
The Kay Properties Online Marketplace is Considered a Leading Resource for DST, 1031 Exchange and 721 Exchange Investors
The Kay Properties & Investments’ online marketplace was created for ease of use and efficacy and is considered by thousands of investors a best-in-class robust platform that connects them with quality real estate offerings. The platform is also a place for Delaware Statutory Trust sponsor firms to connect with tens of thousands of high-net-worth investors seeking to deploy capital into real estate offerings – but only after being accepted onto the platform after a proprietary due diligence process. For investors seeking DST, 1031 and 721 UPREIT investment opportunities, the www.kpi1031.com online marketplace is the perfect match for all sides of the 1031 exchange and real estate investment equation.
Today, the Kay Properties DST 1031 exchange marketplace platform offers investors access to typically 20-40 DST offerings from over 25 different real estate DST and 721 UPREIT sponsor companies. Within the marketplace, investors can review offering documents, business plans, research and analysis materials, sponsor track records (*past performance does not guarantee future results), Kay Properties proprietary due diligence materials and the risk factors of each 1031, DST and 721 UPREIT investment.
As a result, The Kay Properties DST 1031 exchange marketplace has become a best-in-class platform available for connecting high-net-worth investors with real estate offerings as well as a place for real estate sponsors and operators to connect with thousands of high-net-worth investors seeking to deploy capital into real estate offerings.
Kay explained that in addition to being able to review this DST opportunity online, investors can also visit www.kpi1031.com and receive a free listing menu, called the "1031 Exchange DST Property Menu" where they can view the current DST investment opportunities available from typically over 25 different DST sponsor companies.