Brier Creek DST
Raleigh, NC

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Status Available
Type Multifamily DST
Cash-on-cash 5.10%
Leverage 52.5%
Equity Remaining $19.5 Million
Lease
Projected Hold Period 8-10 Years
Year Built 2004
Occupancy
Total Raise $21,475,000
Total Syndication $45,225,000

Offering Summary

Located in Northeast Raleigh, Carrington at Brier Creek, a complex with 270 dwelling units, is adjacent to the Brier Creek Country Club. It is the only apartment community within the prestigious master-planned community, and just minutes away from major universities and employment centers including North Carolina State University and the Research Triangle. Raleigh was ranked No. 8 in MSN's "10 cities every recent graduate should pick up and move to" because of its affordable costs, vibrant population of 20-somethings, and job creation in the area.

Forecasted Cash-on-Cash Return %
Year 1 2 3 4 5 6 7 8 9 10
Cash-on-Cash 5.1 5.1 5.7 4.6 4.8 5.0 5.1 5.2 5.4 5.5
Principal Paydown from Loan Amortization 1.3 1.8 1.9 2.0 2.1 2.2 2.9
Total Yield 5.1 5.1 5.7 5.9 6.6 6.9 7.1 7.3 7.6 8.4

 

Business Strategy
The Master Tenant objectives, on behalf of the Trust, will be to

  • make fixed rent payments and percentage rent payments;
  • maximize rental increases, occupancy, and ‘other income’;
  • improve new lease closing ratios and resident retention;
  • reduce operating expenses; and
  • prepare the property to be sold when the market dictates.

The Location
Raleigh has the 2nd highest rate of net migration of any metro area over the past five years. The city was ranked No. 2 in Forbes Magazine's "America's 20 Fastest-Growing Cities" in February 2014. Research Triangle Park plans to bring 100,000 new jobs to the area with the first phase of its redevelopment already started. Moody's Analytics projects that personal income growth in Raleigh will average 7.9% annually over the next four years, exceeding the projected national rate.

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Risks:

Please note that the listing above is not an offer to sell nor a solicitation on an offer to sell, and is being supplied to you for information purposes only. All investments have inherent risks including those risks common in real estate investment. Potential risks relating to each investment property are disclosed in a private placement memorandum that must be read by the investor prior to making an investment decision. These risks include but are not limited to:

Please also note that this listing is being provided to you based on your representation to us that you are an accredited investor. The Security and Exchange Commission (SEC) defines an accredited investor as an individual with either $1 million in net worth (all assets, excluding primary residence, less all liabilities); or net income for the last two years of $200,000 or greater ($300,000 if spouse has income) with a reasonable expectation of such earnings in the current year. If you do not meet this definition of an accredited investor, please notify us immediately and disregard this message and its contents.