Keystone 1031, a sponsor of tax-advantaged and impact real estate investments, has fully subscribed Keystone 1031 Net Leased Portfolio, a Delaware statutory trust offering that invests in net leased retail properties.
According to a filing with the Securities and Exchange Commission, the private placement offering launched in November 2021 and sought to raise $15.4 million from accredited investors. The proceeds were deployed to purchase a 59,000-square-foot portfolio of six net-leased properties located in four states for $28 million.
The single-tenant properties are leased to Sherwin-Williams (Austin and San Antonio), Firestone (San Antonio), O’Reilly’s Auto Parts (Seattle), 7-Eleven (Orlando), and Walgreens (Kansas City). The company, which previously reported that 75 percent of the portfolio income is generated in states with no state income tax, secured 10-year, interest-only financing for the acquisition.
Keystone 1031 said that the offering is structured to generate monthly cash flow to investors, starting at an annualized rate of 5 percent.
“Our team structured a diversified DST offering that delivered on our real estate philosophy of buying net leased essential retail leased to national brands in top markets,” said explained Mike Packman, founder and chief executive officer. “Most importantly, we provide value to our investors by helping them defer capital gains taxes, preserve wealth, receive stable monthly income, and transition from active to passive property management.”
He added, “We are encouraged by the welcome our DST offerings are receiving from the independent broker-dealer and RIA communities and have a robust pipeline of opportunities to continue bringing DST offerings that deliver value to investors into the market.”
Keystone 1031 is a member of the Keystone National Properties (KNPRE) family of companies. Founded in 2016, KNPRE is a sponsor of tax-advantaged and impact real estate investments for accredited investors.