Multifamily investment sponsor Origin Investments has completed its second acquisition as part of its Origin Exchange Delaware statutory trust investment program. The company acquired Queens Wedgewood-Houston, i.e., Queens WeHo, a 221-unit Class A multifamily community in the heart of downtown Nashville’s Wedgewood-Houston neighborhood for $79.4 million earlier this month.
Origin Exchange provides accredited investors the ability to make a tax free 1031 exchange of an actively managed property investment for a DST asset. The minimum Investment in the DST is $250,000. In total, Queens WeHo is a $44.5 million offering.
“As active investors and developers in Nashville, we recognized the necessity of being in the dynamic Wedgewood-Houston submarket and were highly impressed by the unique nature of Queens WeHo,” said Kyle Verhasselt, senior vice president of acquisitions at Origin Investments.
Queens Wedgewood-Houston, developed by Proffitt Dixon, was delivered in 2023 and features a mix of studio, one-, two- and three-bedroom units ranging in size from 559 square feet to 1,120 square feet. At the closing, the stabilized community was approximately 94% occupied after leasing at a pace of more than 20 units per month during the summer and fall.
The property also features 6,461 square feet of restaurant and retail space, which is fully leased to Mercado by Butchertown, a popular Nashville restaurant that includes a rooftop bar with city views.
Origin introduced Origin Exchange in June 2024 to “create financial solutions that help its investment partners grow and protect their wealth. The firm’s goal is to upend the 1031 exchange market by significantly reducing traditionally sky-high fees, offering high-quality investments, and simplifying the lives of investors who no longer want to actively manage real estate.”
For its first DST transaction, The DI Wire reported last September that the sponsor purchased The Starling, a 300-unit multifamily community located in the Dallas suburb of Princeton, Texas. Also last fall, the private real estate fund manager appointed Michael Collins as managing director, head of investor relations. Collins previously served in capital formation roles with Easterly Asset Management, Kennedy Wilson, The Blackstone Group, and Eaton Vance.
According to Mountain Dell Consulting, in 2024 $5.66 billion in equity was raised as an industry for DSTs and 1031 exchanges, more than $600 million higher than 2023. Further, there were 65 active sponsors during the year – including Origin Exchange’s entry into the market.
“The DST/1031 exchange market is an attractive means for investors seeking tax-efficient capital allocation alternatives and for sponsors looking to engage investors,” said David Scherer, co-CEO, Origin Investments. “We recognize that, and we are going a step further by reducing fee structures to create an alternative that addresses today’s investor needs.”
Through the Origin Exchange program’s DST structure, the company said, qualified 1031 exchange investors may receive benefits including the indefinite deferral of federal capital gains taxes, the potential for passive income and depreciation deductions, and simplified estate planning.
Origin Exchange said that Queens WeHo offers high-quality unit finishes and market-leading amenities, including an on-site music studio, a luxury saltwater pool and fully equipped gym, panoramic views of the Nashville skyline, Google Fiber internet, and a pet-friendly atmosphere.
“With its distinctive design, prime location, and strong potential, we are excited to add this exceptional asset to Origin’s portfolio in Nashville and across the country,” added Verhasselt.
The community is located in a residential neighborhood just south of downtown and is within a three-mile radius of the Musicians Hall of Fame, Country Music Hall of Fame, Bridgestone Arena, Nissan Stadium, and Vanderbilt University.
Located minutes from the downtown business district, the area is home to employers such as Apple Music and Live Nation, Major League Soccer’s Geodis Park, as well as SoHo House, art galleries, coffee houses, breweries, and restaurants.
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