CS1031 Sidbury Station BFR Housing, DST
Sidbury Station is a newly constructed, 113-unit build-for-rent community in Castle Hayne, North Carolina (Wilmington MSA) with a mix of three-, four- and five-bedroom detached single-family homes boasting high-end finishes, backyards and two-car garages.
D.R. Horton, the nation’s largest homebuilder by volume, built the community in 2023. Modern units boast an average of 1,829 square feet with open floorplans, granite countertops, stainless steel appliances, full size washer and dryers, walk-in closets, smart home integration and attached two-car garages. Capital Square’s basis at $348,000 per unit represents a compelling discount relative other for sale homes within the Sidbury Station master planned community at $368,225 per unit. Located on the north side of Wilmington’s MSA, Sidbury Station is one of only four purpose-built rental communities that make up less than 2% of Wilmington MSA’s rental inventory. Limited supply provides a strategic advantage to drive occupancy and rental growth.1
- Source: Regis Online, 2024 ↩︎
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 residential properties in North Carolina.
- 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.
Securities offered through WealthForge Securities, LLC, the managing broker dealer for the CS1031 Sidbury Station BFR Housing, DST offering and member FINRA/ SIPC. Capital Square and WealthForge are not affiliated.
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LocationCastle Hayne (Wilmington MSA), NC
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Overview
A newly constructed, 113-unit build-for-rent community in Castle Hayne, North Carolina (Wilmington MSA) with a mix of three-, four- and five-bedroom detached single-family homes.
