CS1031 Lyric at Norton Commons, DST
Lyric at Norton Commons Apartments is a Class A+, mixed-use multifamily community in the Louisville suburb of Prospect, Kentucky, one of the state’s wealthiest cities.1 The sponsor believes Lyric at Norton Commons is among the highest quality residential communities in the nation.
Spacious floor plans feature top-of-the-line finishes, including stainless-steel GE appliances, quartz countertops, in-unit washers and dryers, large walk-in closets and either private patios or balconies. Lyric is comprised of 273 residential units and 12,191 square feet of retail space. The property is highly amenitized with a 24-hour state-of-the-art fitness center, resort-style heated saltwater swimming pool with poolside cabanas, resident lounge with a complimentary gourmet coffee bar and business center, pet spa, indoor meditation space, movie room with stadium seating and multiple outdoor courtyards with lawn games and grills.
*Capital Square has established a special operating cash flow reserve for CS1031 Lyric at Norton Commons Apartments, DST, enabling the trust to make an additional monthly distribution equaling 5.00% per annum to beneficial owners for a 24-month period, increased from the historically paid distribution on an annual basis.
Source: 1. Louisville Business First, Dec. 3, 2020.
Consider the Risks
An investment in the Interests involves substantial investment and tax
risks, including, without limitation, the following risks:
• Past performance is not a guarantee of future results.
• The economic success of the Interests will depend upon the results of operations of the Property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the Property difficult or unattractive.
• The Master Tenant’s capitalization is supported solely by the cash flow from the underlying tenant lease. The Sponsor is not under any obligation to contribute capital to the Master Tenant.
• No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
• No assurance can be given that Beneficial Owners of Interests will realize a substantial return (if any) on their investment or that they will not lose their entire investment in the Trust.
• There are various risks associated with owning, financing, operating, and leasing commercial properties in Kentucky.
• The Interests are not freely transferable by the Beneficial Owners.
• The Interests do not represent a diversified investment.
• Beneficial Owners must completely rely on the Master Tenant to collect the rent and operate, manage, lease, and maintain the Property.
• The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the property.
• There are various conflicts of interest among the Trust, the Sponsor, the Signatory Trustee, and their Affiliates.
• The Interests are illiquid.
• There are tax risks associated with an investment in the Interests.
• There are risks related to competition from properties similar to and near the property.
• There may be environmental risks related to the property.
• Private Placements are speculative.
*“Tax-Advantaged” refers to any type of investment that is either exempt from
taxation, tax-deferred, or that offers other types of tax benefits. Capital Square is
a national sponsor of investment opportunities that can provide such benefits via
our 1031 exchange and opportunity zone offerings, among others.
Securities offered through WealthForge Securities, LLC, the managing brokerdealer for the CS1031 Lyric at Norton Commons Apartments, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
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LocationProspect, KY
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Overview
Lyric at Norton Commons Apartments is a Class A+, mixed-use multifamily community in the Louisville suburb of Prospect, Kentucky, one of the state’s wealthiest cities.
