LRT Company, an opportunistic development firm and sponsor, announced today that it has fully subscribed its Regulation D, private placement offering: LRT Island Gateway 5 DST. The all-cash offering raised nearly $4.9 million in equity from accredited investors.
LRT Island Gateway 5 DST consists of a 4.28-acre property with a triple-net ground lease for the development of a new self-storage and retail facility in Hardeeville, S.C. The property is located adjacent to Interstate 95 on Medical Center Drive, west of Hilton Head Island. The site will be home to a 100,000-square-foot self-storage and retail facility that will be part of a 954-unit, mixed-use community.
“LRT Company specializes in providing section 1031 exchange and cash investors with the opportunity to realize the potential tax and other economic benefits of investing in Delaware statutory trust offerings – specifically through the unique, but not new, structure of ground-lease investments,” said Lawrence LaBonte, founder and chief executive officer of LRT Company.
The property within LRT Island Gateway 5 DST is part of Island Gateway, an 82.6-acre greater master-planned community under construction by LRT Development. Upon completion, Island Gateway is expected to include 600 multifamily residences, a care-continuum senior living campus, and 200 units of “active adult” residences for those aged 55 and older.
“We are pleased to fully subscribe this offering of a ground-leased property approximately 18 miles from Savannah, Ga., [and] 12 miles from Hilton Head. South Carolina is the fastest growing state per capita in the U.S., and we believe that the time and investment LRT has made over the past four years on design and entitlements will be a good win for our firm and its investors,” said LaBonte. “The regional growth should continue due to the economic and job creation in the area, led by Hyundai’s new $7.6 billion electric vehicle and battery plant, and the $2 billion expansion of the Savannah Port to double its capacity, as well as plans to spend an additional $2.5 billion on the port over the next 10 years.”
According to past reporting by The DI Wire in September 2024, LRT Company launched LRT Hardeeville Senior Living DST, an all-cash, Regulation D private placement DST offering that seeks to raise $17 million in equity from accredited investors. Also, within the Island Gateway master-planned community, LRT Hardeeville Senior Living DST will include an assisted living and memory care senior housing community to be developed by LRT Development. Through its development arm, LRT currently has approximately $150 million of projects in the Southeast and Northeast.
Hilton Head Island is located in Beaufort County, S.C., approximately 20 miles northeast of Savannah and 95 miles southwest of Charleston. The city’s population grows during the summer with approximately 2.5 million visitors throughout the year, according to HiltonHead.com. It is within the Hilton Head Island-Bluffton-Port Royal metropolitan statistical area, with a population of approximately 232,000.
LRT Company is a ground-up development company specializing in the entitlement and development of multifamily and senior housing projects with a focus on the Southeast and Mid-Atlantic. The company is also a sponsor of Delaware statutory trust investment opportunities. The company was founded in 2019 by LaBonte, who has more than 35 years of commercial real estate experience. The leadership team has been involved in more than $1 billion of real estate development transactions.
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