Marketplace

NexPoint Aviation DST DST

Morrisville, NC

Property Description

Aviation Crossing is a townhome / carriage-style apartment development located at 4555 McCrimmon Parkway, Morrisville, North Carolina 27560 (the “Property”). Developed in 2021, the Property consists of 12.68 acres of land upon which five residential buildings are situated, housing a total of approximately 294,293 rentable square feet across 298 apartment units (the “Apartment Units”). The Property includes amenities such as a ridesharing lounge, electric vehicle charging stations, private day offices and conference room, covered outdoor clubroom, summer kitchen with electric grills and dining area, resort-style swimming pool, poolside pavilion, bark park and spa, 24-hour fitness center and clubhouse, game room, detached garages, and 24/7 secured access package room. As of July 18, 2022, the Property was 94.3% leased.

Acquistion Details

Total Equity

$77,258,899

Total Debt

$56,398,000

Total Value

$133,656,899

Loan-to-value

42.2%

Units

298

Occupancy (as of 7/18/2022)

94.3%

Address

4555 McCrimmon Parkway, Morrisville, NC 27560

Financial Details

Purchase Price

$120,000,000

Reserves

$899,000

Loan interest rate

4.12%

Loan term

10 years

Interest only period

10 years

Investor Distributions

Monthly

Tax Forms

Grantor Letter & Property Financials

Business Plan

The Sponsor’s business plan for the Property and its investment objectives for the Interests will be to (i) preserve the Purchasers’ capital investment, (ii) make monthly distributions from Master Lease rent payments, which may be partially tax deferred as a result of depreciation and amortization expenses, (iii) capitalize on potential rental premiums afforded by the easy access to major economic drivers, robust development and thriving economic conditions in the local area, (iv) increase the net operating income of the Property through growth in rental rates, maintenance of high renter demand and occupancy, implementation and maintenance of expense controls by professional property management, and institutional-quality asset management, (v) add value and improve asset quality through selective minor and non-structural capital improvements, thereby increasing rent and renter demand, and (vi) sell the Property at a profit within approximately five to 10 years. See “Business Plan.” There is no guarantee that the objectives will be successfully achieved, that the Property’s value will be enhanced, or that the Property will be sold within the planned time period. An investment in the Interests involves substantial risks. See “Risk Factors.”

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