NewStar Exchange Expands Portfolio with New BTR Community

NewStar Exchange Enhances Its Offering with BTR Community

NEWSTAR Exchange, a devoted subsidiary of NEWSTAR, has recently made significant strides by acquiring a newly constructed built-to-rent (BTR) community, showcasing its commitment to expanding its portfolio. This acquisition signifies not only growth in their operational footprint but also a unique opportunity for accredited investors interested in diversifying their real estate investments.

About the Acquisition of Hadley Crossing

This specific community, named Hadley Crossing, consists of 44 detached single-family rental homes designed meticulously for modern lifestyles. Developed by Stella Homes, these homes offer four spacious bedrooms along with attached two-car garages. The impressive features include Hardiplank facades, quartz countertops, stainless steel appliances, and high-quality flooring, ensuring a comfortable living experience.

What sets Hadley Crossing apart in the competitive market is its swift stabilization—achieved in less than eight months. This rapid success can be attributed to the usability of its design and the appeal to families within the area. Moreover, it holds a notable position, being among the top three highest build-to-rent rental rates in its market, with an average household income exceeding $200,000.

Investment Opportunities through Delaware Statutory Trusts

NEWSTAR has launched a new Delaware Statutory Trust (DST) offering for accredited investors eager to engage in like-kind exchanges. This offering not only appeals to those looking to manage their tax responsibilities effectively but also aims to raise around $14 million in equity from potential investors. The partnership with Preferred Capital Securities is instrumental in distributing this offering and aligning with regulatory requirements.

CEO Insights on the Development

Boone DuPree, the Chief Executive Officer of NEWSTAR, stated, "The acquisition of Hadley Crossing represents our fourth DST offering, underscoring our growth trajectory in the Exchange program, which has previously closed three successful initiatives, collectively raising over $50 million in equity. We are thrilled to continuously improve our site selection strategies and uphold our high management standards. Partnering once again with Preferred Capital Securities enriches this venture significantly."

Financing and Investor Leverage

Financing for Newstar 14 Hadley Crossing, DST is secured through Fannie Mae. This financial infrastructure allows for impressive leverage of 43% for DST investors, thus maximizing their potential for returns and engaging successfully in the real estate market.

About NEWSTAR Exchange

NEWSTAR Exchange plays a crucial role in the real estate landscape, focusing on investing and managing Class A built-to-rent residential communities strategically located in rapidly growing suburban areas across the Sun Belt region of the United States. By utilizing Delaware Statutory Trusts for its investments, the company ensures that it offers high-quality assets that have been meticulously vetted through a comprehensive due diligence process, enhanced by decades of institutional real estate knowledge.

Preferred Capital Securities and Its Role

PCS, an independent broker-dealer, functions as a valuable partner for NEWSTAR Exchange by providing essential distribution of this offering. With a strong background in raising retail capital, PCS brings expertise to connect accredited investors with meaningful investment opportunities, as illustrated by their successful fundraising efforts since their establishment in 2011.

Frequently Asked Questions

What is Hadley Crossing?

Hadley Crossing is a newly constructed built-to-rent community consisting of 44 single-family homes developed by Stella Homes, now managed by NEWSTAR Exchange.

How does the DST offering work?

The Delaware Statutory Trust offering allows accredited investors to engage in tax-deferred exchanges under IRC Section 1031, providing opportunities to diversify and protect their investments.

What financing options are available for investors?

Investors in Newstar 14 Hadley Crossing, DST have access to financing backed by Fannie Mae, which offers 43% leverage on their investment.

Who is NewStar Exchange?

NEWSTAR Exchange specializes in managing high-quality built-to-rent residential communities and invests through Delaware Statutory Trusts, focusing on growing suburban locations across the United States.

What is the average rental rate at Hadley Crossing?

Hadley Crossing is recognized for achieving one of the top three highest rental rates in the build-to-rent market, catering to households with an income exceeding $200,000.

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