NewStar Exchange, a subsidiary of NEWSTAR, has acquired Hadley Crossing by Stella Homes, a single-family rental subdivision located in Charlotte, N.C., and subsequently launched a new Delaware statutory trust offering for those seeking to complete like-kind exchanges under IRC Section 1031.
NewStar 14 Hadley Crossing, DST seeks to raise approximately $14 million in equity from accredited investors. The offering is being distributed by Preferred Capital Securities in accordance with Rule 506(c) of Regulation D of the Securities Act of 1933.
The property was developed by NEWSTAR and features 44 four-bedroom detached homes with two-car attached garages. All homes feature quartz countertops, stainless steel appliances, stone plastic composite floors, soft-close cabinetry, walk-in showers, framed mirrors, and sodded and fenced-in yards.
“Hadley Crossing is NEWSTAR’s fourth DST offering, continuing to grow our exchange program which has successfully closed out three programs to date, raising more than $50 million of equity in partnership with our broker-dealer, Preferred Capital Securities,” said Boone DuPree, chief executive officer of NEWSTAR.
According to NEWSTAR, the DST is financed with a first mortgage through Fannie Mae, offering 43% leverage to DST investors on the offering’s syndicated basis.
“This single-family rental neighborhood was developed by NEWSTAR, meeting our site selection criteria, built to our specifications, and managed to our leasing requirements. The property reached stabilization within less than eight months, achieving the No. 3 highest build-to-rent rental rates in the Charlotte market, with an average household income of more than $200,000. We are excited to launch this new offering for accredited investors completing tax-deferred exchanges,” added DuPee.
Last August, NewStar Exchange announced that NewStar 6 Tranquil Gardens BTR, DST had been fully subscribed. The offering raised $19.1 million in aggregate equity.
For more Preferred Capital Securities news, please visit their directory page.
Read the full article here