Passco Canal 1535 DST

Property Description

On April 21, 2022, the Trust acquired a mixed-use, 330-unit multifamily apartment complex known as Canal 1535 Apartments (the “Project”) located on approximately 1.85 acres of land and encompassing an entire city block in downtown New Orleans, Louisiana. According to the Needs Assessment (as defined below), the Project, constructed in 2020, consists of (i) a 9-story mixeduse residential building comprised of 9 stories of multifamily apartments, with a net rentable area of approximately 298,109 square feet, (ii) a 9-level parking structure located and tied into the north central portion of the building and accessed from Iberville Street on the north side of the building, and (iii) approximately 1,700 square feet of ground floor retail space. According to the Appraisal (as defined below), the residential portion of the Project offers a diverse mix of studio, 1-bedroom and 2-bedroom units with an average unit size of 903 square feet. According to the Survey (as defined below), the Project has a total of 463 automobile parking spaces located in the parking structure, including 7 handicap parking spaces, and 48 bicycle parking spaces. According to the Rent Roll (as defined below), the Project is leased at an occupancy rate of approximately 84.24% as of April 10, 2022. See “Description of the Project.”

Acquistion Details

Total Equity

$93,650,000

Total Debt

$45,000,000

Total Value

$138,650,000

Loan-to-value

32.46%

Units

330

Occupancy (as of 4/10/2022)

84.24%

Address

1535 Canal Street, New Orleans, LA 70112

Financial Details

Purchase Price

$123,250,000

Reserves

$4,391,223

Loan interest rate

4.28%

Loan term

10 years

Interest only period

7 years

Business Plan

The principal objectives of the Trust will be to (i) distribute to the Holders rent, after payment of debt service and expenses, at various levels of the purchase price paid by the Holders for the Interests during the first 10 years of ownership, (ii) amortize debt during a portion of the ownership of the Project and (iii) prepare the Project to be sold in approximately 10 years. There can be no assurance that any of these objectives will be achieved. See “Risk Factors.”

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This website is for informational purposes only. This website does not provide investment advice or recommendations, nor is it an offer or solicitation of any kind to buy or sell any investment products. Securities offered through Stax Capital, Member FINRA & SIPC. Stax Capital is located at 10525 Vista Sorrento Pkwy, Suite 220, San Diego, CA 92121. Contact us toll free at 844-427-1031. Private Placements and Direct Participation Programs are speculative investments and involve a high degree of risk. An investor could lose all or a substantial portion of his/her investment. Investors must have the financial ability, sophistication/experience and willingness to bear the risks of an investment in Private Placements and Direct Participation Programs. Private Placements and Direct Participation Program offering materials are not reviewed or approved by federal or state regulators. Investors should not place undue reliance on hypothetical or pro forma performance summaries. Investors must conduct their own due diligence and should rely on the advice of their own financial, tax and legal advisors prior to making any investment decisions.

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There are substantial risks in the DST Investment program. This type of investment is speculative, is illiquid, and carries a high degree of risk – including the potential loss of the entire investment. See the “risk factors” in the Private Placement Memorandum for a complete discussion of the risks relevant to DST offerings. Investors have no control over management of the Trust or the property. There is no guarantee that investors will receive any return. Distributions may be derived from sources other than earnings. The property will be subject to a Master Lease with an Affiliate of the Sponsor. The property will be subject to the risks generally associated with the acquisition, ownership and operation of real estate including, without limitation, environmental concerns, competition, occupancy, easements and restrictions and other real estate related risks. The properties may be leveraged. The Manager, the Master Tenant and their Affiliates will receive substantial compensation in connection with the Offering and in connection with the ongoing management and operation of the property. The Manager, the Trust, the Master Tenant and their Affiliates will be subject to certain conflicts of interest. An investment in the Interests involves certain tax risks.

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