Croatan Investments, a private equity real estate manager focused on multifamily investments, has closed its first full-cycle Delaware statutory trust offering, Croatan North Oaks DST.
According to a filing with the Securities and Exchange Commission, the offering launched in early 2019 and sought to raise $27.3 million in investor equity. The company indicated that “over the two-year hold period, the property generated 220 percent net returns, including returning capital contributions to investors.”
North Oaks Landing is a 200-unit garden apartment community located in Raleigh, North Carolina that was originally purchased by Croatan Investments as a value-add investment in 2014. The asset was repositioned as a stabilized Class B+ property when Croatan sponsored the asset as a DST offering. According to the company, “the $12.3 million in equity was syndicated to 37 retail 1031 exchange investors between 2019 and 2020.”
“We’re excited to grow our footprint in the DST space and bring retail investors institutional-grade investment opportunities…,” said Paul Van, chief executive officer.
The company said that upon closing, most DST investors chose to continue utilizing a 1031 exchange for their proceeds, with some participating in its current DST offering.
Founded in 2004 and headquartered in Virginia Beach, Croatan has team members operating in Austin, Dallas, Atlanta, New York City, Washington D.C., and Singapore. The company’s portfolio currently consists of multifamily assets across the Mid-Atlantic and Sun Belt regions.