DST Offering Detail
Ideal Capital Group ICG Sentio DST
DST Offering Highlights
ICG Sentio DST is a 325-unit multi-family property that is currently 97.5% occupied. Built in 2022, Sentio is currently 97.5% occupied with 100% of the units leased under a master lease agreement with Taiwan Semiconductor Manufacturing Company (TSMC) until September 2025. The property offers a diverse mix of 1–, 2-, and 3-bedroom floor plans ranging on average from 640 – 1388 square feet. Individual units feature smart home technology, stainless steel appliances, solar shade window treatments and oversized walk-in closets, as well as double sink vanities and large walk-in glass showers in some units. The property boasts an extensive array of amenities, including a resort-style swimming pool, 24-hour fitness center, game and activity lawn, private outdoor yoga terrace, dog park, secured package lockers, valet trash service, co-working lounge with conference rooms and 24-hour clubhouse equipped with a TV, kitchenette and bar and lounge seating. Residents of Sentio Apartments have immediate access to numerous retail, entertainment and grocery store centers, along with access to hiking trail networks at the Sonoran Preserve, Deem Hills and Cave Buttes Recreation Area.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Multi-Family |
| Property State: | Arizona |
| Property City: | Glendale |
| Properties: | 1 |
| Units: | 325 |
| Offering Size: | $125,000,000 |
| Equity Offering: | $65,000,000 |
| Loan-to-Value: | 48.00% |
| Loan Terms: | 10-yr Fixed, 10-yr Interest Only at 5.85% |
| Cash Flow: | Call to Confirm |
About Ideal Capital Group
Ideal Capital Group is a vertically-integrated real estate investment company focused on multifamily assets in primary and secondary U.S. markets. The company focuses in owning, developing, leasing, managing and selling real estate. Since inception, Ideal Capital Group has developed, acquired and/or sold over 100 apartment communities in six states, totaling over 13,000 units with a transaction volume of $3.3 billion as of January 2024. Currently, they oversee and/or own over 5,700 units.
Benefits of a Delaware Statutory Trust
Delaware Statutory Trusts are a popular 1031 Exchange replacement property option that allows for fractional ownership of high-quality institutional properties acquired by and managed by large real estate firms, referred to as DST sponsors. DSTs provide a unique and flexible solution to investment property owners who want to defer tax and continue to own investment property without the management requirements of directly owned property. Below are some of the benefits of investing in DST real estate.
- Tax Savings: DSTs allow for the deferral of federal capital gains tax, state capital gains tax, net investment income tax, and depreciation recapture tax. The tax savings can be significant, especially in states where the potential tax liability can be as high as 42%.
- Monthly Income Potential: DSTs are structured with an emphasis on cash flow for investors and typically include high-quality institutional property.
- Eliminate Active Property Management: Ownership of a DST is entirely management free.
- Eliminate Tax for Estate Beneficiaries: DSTs allow for a “step-up in basis” upon the passing of an owner (elimination of Capital Gains, Depreciation Recapture, and Net Investment Income Tax).
- Low-Cost Non-Recourse Debt Matching: Most investors have debt that must be matched in their exchange, therefor many DSTs are structured with debt in place.
- Low Risk of a Failed 1031 Exchange: Extensive DST property due diligence is prepared in advance and DST closings can occur quickly – in a matter of days.
DST Risks
DSTs offer many benefits however they are not suitable for everyone and come with risks. Therefore, DSTs are only available to accredited investors. Before deciding to invest in DST real estate, carefully consider the following considerations: Lack of liquidity, timing of exit, lack of control, and interest rates can affect financing, leasing, and appreciation. Additionally, loan modifications may not always be possible, cash flow is not guaranteed, and projected appreciation may not occur. There are also management costs and fees associated with owning DSTs which are disclosed in the prospectus. While not a precisely defined term, a high grade, institutional-grade, or institutional-quality property generally refers to a property of sufficient size and stature to merit attention from large national or international investors.
