Marketplace

NexPoint Hughes DST

Las Vegas, NV

Property Description

Developed in 2020, the Property consists of 6.08 acres of land upon which two residential buildings (one seven-story and one five-story) are situated, housing a total of approximately 351,081 rentable square feet across 368 apartment units (the “Apartment Units”). The Property includes amenities such as 22,000+ square-foot clubhouse, a 5,065 square-foot indoor and outdoor sky lounge, a comprehensive resident health, wellness and lifestyle suite, a resort-style pool with private cabanas, concierge services, and well-appointed unit interiors among others. As of February 23, 2022, the Property was 91.6% leased.

Acquisition Details

Total Equity

$115,262,632

Total Debt

$89,634,000

Total Value

$204,896,632

Loan-to-value

43.75%

Units

368

Financial Details

Purchase Price

$184,100,000

Reserves

$5,325,000

Loan interest rate

3.52%

Loan term

10 Years

Interest only period

10 Years

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 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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