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Groma Launches Its Third Boston-Based DST Offering

Groma Launches Its Third Boston-Based DST Offering. Alternative Investments, Commercial Real Estate, Investment, Investing, Industrial, Real Estate, DST, Delaware Statutory Trust, 1031, 1031 Exchange, Groma, Groma DST III, Tech, Technology

GromaCorp, Inc., a tech-driven real estate investment firm, announced the launch of Groma DST III, a 506(c) offering that seeks to raise $3.4 million from accredited investors with a minimum investment of $50,000.

The company’s third DST program, Groma DST III is reportedly designed to provide accredited investors with exposure to Boston-area multifamily real estate and is focused on small-unit-count multifamily properties in the Boston area.

According to a recent release, the DST has acquired a portfolio of four contiguous, stabilized multifamily properties, comprising 10 multifamily units, in the Charlestown neighborhood of Boston. Groma reports that Charlestown is one of the most sought-after residential neighborhoods in the Boston area.

The four buildings are located near the Sullivan Square T Station, providing direct access to TD Garden, the North End, and the financial district. The properties boast a walk score of 90, with easy access to a Whole Foods grocery and numerous popular restaurants and bars. Groma also says that each residential unit was either built or newly renovated in the past 10 years, with stone countertops, hardwood floors, luxury tile bathrooms, and spacious open-concept kitchen and living areas. The portfolio is currently 100% occupied.

“DSTs are a great tool for investors with 1031 proceeds who want to maintain exposure to real estate while deferring tax burden. This portfolio is exactly the kind of stable, durable asset that we target for our DST programs.”, said Christina Dorobek, Groma’s head of investor strategies. “We’re also thrilled to be expanding into Charlestown, an iconic Boston neighborhood that has been a favorite of young urban professionals for decades.”

Groma’s previous DST offerings, DST I and DST II, both acquired small multifamily properties in the Mission Hill, Fort Hill, and Roxbury neighborhoods of Boston. Groma states that these properties have maintained an average of greater than 97% occupancy, with market rents hitting or exceeding initial targets.

The launch of this most recent DST continues Groma’s growth in the Boston area. As previously reported by The DI Wire, the company recently achieved full lease-up for its OZ fund development.

Groma is a vertically integrated real estate and technology firm. The company was founded in 2020 and is headquartered in Boston, MA.

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