Croatan Investments has fully subscribed its second Delaware Statutory Trust (DST) offering, Addicks Stone Village, DST. The offering raised $8.8 million from retail investors, acquiring Addicks Stone Village as the second leg of a 1031 transaction. The offering, a 70-unit, build-to-rent townhome community located in Houston, TX, was 50% syndicated in just 14 days with full syndication as of July 9, 2021.
“Croatan Investments is very pleased with the rapid syndication of our latest offering in the independent broker-dealer channel,” said Paul Van, CEO. “Our firm remains committed to building market share in the DST market, and we are proud that the solid reputation we have built with real estate investors over our 17-year history has translated into retail investors placing trust in our DST offerings.”
The build-to-rent configuration of Addicks Stone Village boasts notably larger 2,200+ square foot floor plans and two-car garages. The property takes advantage of the continued increase in demand for rental properties with more interior and exterior space compared to traditional multifamily properties as these consumers, with a bias for renting, transition into stages of life that require additional living space. Located just south of the Energy Corridor District in Houston, the property is local to a diverse economy. Supported by industry sectors including energy, distribution, and healthcare, Houston is the third largest concentration of Fortune 500 companies in the country. Nearby employment drivers include Exxon, Sysco, ConocoPhillips, and Waste Management.
Built in 2008, our business strategy for the asset includes a light value-add component, including bathroom renovations, kitchen tile backsplashs, energy efficient washers and dryers, WiFi-enabled thermostats, and keyless entry smart locks. The entire property received a roof replacement shortly after the initial closing and prior to syndication, along with power washing and painting of the building exteriors to enhance curb appeal. The addition of a grill station and playground are also included in the capital expenditure plan.