DST Offering Detail
Livingston Street Capital LSC-Lakewood CO DST
DST Offering Highlights
Livingston Street Capital LSC-Lakewood CO, DST consists of a 125-unit age-restricted, independent living community located in Lakewood, CO. Constructed in 2008, Lakeview Senior Living is currently 92.8% occupied. The individual residences include a diverse combination of studio, 1- and 2-bedroom units ranging from 400 – 1,220 square feet. All residents have access to a wide range of services including on-site chef prepared meals, housekeeping, landscaping, 24-hour maintenance and transportation to local destinations. Lakewood Senior Living lies within the Lakewood/West Corridor submarket, containing the 2,624-acre Bear Creek Lake Park. The park is adjacent to the property and offers its residents access to multiple recreational activities, including public pickleball and tennis courts, a bass fishing pond and the seven-mile Bear Creek Trail. Residents also live within four miles of the Belmar Shopping District, offering convenient access to over 80 shops and restaurants including Whole Foods Market, Target, LensCrafters, Dick’s Sporting Goods and P.F. Chang’s.
| Property Status: | Closed Offering |
|---|---|
| Property Type: | Multi-Family |
| Property State: | Colorado |
| Property City: | Lakewood |
| Properties: | 1 |
| Units: | 125 |
| Offering Size: | $29,460,000 |
| Equity Offering: | $15,060,000 |
| Loan-to-Value: | 48.88% |
| Loan Terms: | 10-yr Fixed, 10-yr Interest Only at 6.60% |
| Cash Flow: | Call to Confirm |
About Livingston Street Capital
Livingston Street Capital is a commercial real estate private equity firm headquartered in Pennsylvania. Their investment focus includes residential sectors like active adult communities, independent living properties, as well as mission-critical/strategic properties led by a leadership team boasting over 75 years of combined real estate and capital markets experience.
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.
