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Passco Estelle DST

Birmingham, AL

Property Description

The Project is a 280-unit multifamily apartment community known as Estelle Apartments (the “Project”) located on approximately 16.63 acres of land in Birmingham, Alabama. According to the Needs Assessment (as defined below), the Project was constructed in 2021. The Project contains 9 3-story residential buildings, 6 single-story detached garages, a single-story clubhouse building, a single-story fitness building, a single-story yoga building. The Project includes 1-, 2- and 3-bedroom units. According to the Survey (as defined below), the Project has 461 parking spaces, comprised of 412 regular surface spaces, 8 ADA-designated spaces and 41 detached garage spaces. According to the Rent Roll (as defined below), the Project is leased at an occupancy rate of approximately 96.1% as of April 11, 2022.

Acquistion Details

Total Equity

$67,100,000

Total Debt

$36,829,000

Loan-to-value

35.44%

Units

280

Occupancy (as of 4/11/2022)

96.10%

Address

100 Wildwood Court, Birmingham, AL 35209

Financial Details

Purchase Price

$92,475,000

Reserves

$3,652,765

Loan interest rate

4.14%

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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