TNP/POST Ladera Palms DST

TNPPOST Ladera Palms DST

[This offering is fully subscribed. This is provided as an example of one of the offerings our affiliates have recommended to clients in the past.]

Description:

TNP/POST Ladera Palms DST is a 784-unit, garden-style apartment community, in Ft. Worth, Texas. The units offers occupants various amenities, including walk-in closets, heating and air, refridgerators, and other large appliances. The facility itself offers a pool, washers and dryers, business and fitness centers, and tennis and basketball courts. The property was purchased at a discount due to a short sale, leased up from 80% to 90%, cash flowing at a little more than 8% in the hold period, and eventually sold at a 22%+ profit in approximately 30 months.


Tax-Benefits:

The offering was structured as a Delaware Statutory Trust (DST) to allow investors to utilize the investment for a 1031 exchange. Depending on their investment basis when investing in the property, investors were able to utilize depreciation to defer taxes on a portion of the income derived from the property.


Goals:

  1. Consistent longer-term income backed by strong corporate credit.
  2. Significant tax-savings as a strong 1031 exchange option and as an option for income-tax deferral with depreciation.
  3. Potential long-term upside for a sale or increase in income based on the value of the income provided by the rent increases in the lease.


Status:

This property performed better than anticipated, providing steady, monthly income inline with projections, and was sold earlier than projected in 2013 at a significant profit. Individual investors in the program were able to derive income-tax deferral due to the normal depreciation allowance for multifamily commercial real estate, and benefitted from the upside on the sale of the property.


Cash Flow Return:

Year201120122013
Projected8.00%8.17%8.32%
Actual8.00%8.17%26.30%
Variance0.00%0.00%17.98%


 Total Profit (Incl. Cash Flow and Capital Gains):

42.30% (in approx. 30 months)


[Past performance does not guarantee future results. This offering’s results are not necessarily indicative of future recommended offerings. Real Estate Investing is subject to risk, including, but not limited to potential disruptions in cash flow, loss of principal, illiquidity, etc.]

 
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