NewStar Exchange Acquires Newly Constructed Built-to-Rent ("BTR") Community in Charlotte, North Carolina and Launches New 1031 Delaware Statutory Trust Offering

Rhea-AI Summary

NEWSTAR Exchange has acquired Hadley Crossing, a 44-unit single-family rental community in Charlotte, North Carolina, and launched a new Delaware Statutory Trust (DST) offering for accredited investors. The property features 4-bedroom detached homes with premium amenities and achieved the #3 highest build-to-rent rental rates in Charlotte, with average household incomes exceeding $200,000.

The DST offering, Newstar 14 Hadley Crossing, is financed through Fannie Mae with 43% leverage and aims to raise approximately $14 million in equity. This marks NEWSTAR's fourth DST offering, following successful closures of three previous programs that raised over $50 million in equity. The property reached stabilization in less than 8 months and is being distributed by Preferred Capital Securities under Rule 506(c) of Regulation D.

ATLANTA, Dec. 19, 2024 /PRNewswire/ -- NEWSTAR Exchange, a subsidiary of NEWSTAR, announced today that it has acquired Hadley Crossing by Stella Homes, a single-family rental subdivision located in Charlotte, North Carolina, and launched a new Delaware Statutory Trust offering for accredited investors seeking to complete like-kind exchanges under IRC Section 1031.

The property was developed by NEWSTAR and features 44, 4-bedroom detached homes with two-car attached garages. All homes feature Hardiplank facades, Quartz countertops, stainless steel appliances, Stone Plastic Composite ("SPC") floors, soft-close cabinetry, walk-in showers, framed mirrors, and sodded and fenced-in yards. NEWSTAR Exchange acquired the property on behalf of Newstar 14 Hadley Crossing, DST.

"Hadley Crossing is NEWSTAR's fourth DST offering, continuing to grow our Exchange program which has successfully closed out three programs to-date, raising more than $50 million of equity in partnership with our broker-dealer, Preferred Capital Securities," said Boone DuPree, Chief Executive Officer of NEWSTAR. "This single-family rental neighborhood was developed by NEWSTAR, meeting our site selection criteria, built to our specifications, and managed to our leasing requirements. The property reached stabilization within less than 8 months, achieving the #3 highest build-to-rent rental rates in the Charlotte market, with an average household income of more than $200,000. We are excited to launch this new offering for accredited investors completing tax-deferred exchanges, and to partner once again with PCS as our managing broker-dealer."

Newstar 14 Hadley Crossing, DST is financed with a first mortgage through Fannie Mae, offering 43% leverage to DST investors on the offering's syndicated basis, and seeks to raise approximately $14 million in equity from accredited investors. The offering is being distributed by Preferred Capital Securities in accordance with Rule 506(c) of Regulation D of the Securities Act.

About NEWSTAR Exchange: NEWSTAR Exchange is subsidiary of NEWSTAR that invests in and manages Class A single-family built-to-rent residential communities in growing suburban locations across the United States "Sun Belt". The Company invests through Delaware Statutory Trusts which it sponsors, and brings to market high-quality assets vetted by a rigorous due diligence process that has been developed and refined over decades of institutional real estate experience. For more information visit https://www.newstar-am.com/investment-management.

About Preferred Capital Securities ("PCS"): PCS (Member FINRA/SIPC) is a fully independent, third-party Managing Broker Dealer focused on both back-office solutions and the wholesale distribution of alternative investments to Independent Broker-Dealers (IBDs) and Registered Investment Advisors (RIAs) across the United States and Puerto Rico. PCS is currently the Managing Broker Dealer of NewStar Exchange, the Preferred Stock offering for Prospect Capital Management (NASDAQ: PSEC), The Priority Income Fund, WhiteHawk Minerals, and the Preferred Stock offering for Applied Digital (NASDAQ: APLD). With a track record that empowers their partners to embark with confidence, PCS is proud to have raised over $5 Billion in retail capital across 16 offerings which have issued approximately $1 Billion in liquidity for its investors since the firm's inception in 2011. To learn more about PCS please visit www.pcsalts.com. 

Contact: NewStar1031@pcsalts.com 

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SOURCE NewStar Asset Management

FAQ

What are the key features of NEWSTAR's Hadley Crossing property in Charlotte?

Hadley Crossing features 44 four-bedroom detached homes with two-car attached garages, Hardiplank facades, Quartz countertops, stainless steel appliances, SPC floors, soft-close cabinetry, walk-in showers, framed mirrors, and sodded and fenced-in yards.

How much equity is NEWSTAR seeking to raise for Hadley Crossing DST?

NEWSTAR is seeking to raise approximately $14 million in equity from accredited investors for the Newstar 14 Hadley Crossing DST offering.

What is the leverage structure of the Hadley Crossing DST investment?

The DST is financed with a first mortgage through Fannie Mae, offering 43% leverage to DST investors on the offering's syndicated basis.

How quickly did Hadley Crossing achieve stabilization?

Hadley Crossing reached stabilization within less than 8 months and achieved the #3 highest build-to-rent rental rates in the Charlotte market.

What is NEWSTAR's track record with DST offerings?

This is NEWSTAR's fourth DST offering, with three previous programs successfully closed, raising more than $50 million of equity in partnership with Preferred Capital Securities.

What is the average household income of Hadley Crossing residents?

The average household income of Hadley Crossing residents exceeds $200,000.