NewStar Exchange Acquires Atlanta Built-to-Rent Community for $19 Million DST Offering

NewStar Exchange, a sponsor of Delaware statutory trust offerings, announced the acquisition of Tranquil Gardens, a single-family built-for-rent community in the Atlanta suburb of Woodstock, Atlanta. The community was acquired on behalf of NewStar 6 Tranquil Gardens BTR DST, which seeks to raise $19 million from accredited investors.

According to NewStar, the community is 95% leased and includes 73 newly constructed three- and four-bedroom detached and townhome plans that feature two-car garages, vinyl tile floors, granite countertops, stainless steel appliances and fenced-in backyards.

“In-place rents at the property offer a 24% discount to the monthly payment required to own the median priced home listed for sale in the surrounding Woodstock submarket,” said Joe Gibson, NewStar’s chief investment officer. “The market demand for this housing product and price point is evidenced by Tranquil Gardens achieving 95% occupancy within five months of its completion. We look forward to continuing to develop and acquire single-family rental communities like Tranquil Gardens across the Southeast.”

NewStar says Tranquil Gardens is financed with a first mortgage through Freddie Mac, offering 40% leverage to DST investors on the offering’s syndicated basis. Minimum investment in the offering, which is being distributed by Preferred Capital Securities, is $100,000 for 1031 investors and $25,000 for cash investors.

This is the company’s sixth investment since launching NewStar Asset Management in 2021, and the third investment by NewStar Exchange.

NewStar Exchange is a subsidiary of NewStar Asset Management that invests in and manages Class A single-family built-to-rent residential communities in growing suburban locations across the United States “Sun Belt.”

Preferred Capital Securities is a third-party managing broker-dealer focused on both back-office services and the wholesale distribution of alternative investments to independent broker-dealers and registered investment advisors across the United States and Puerto Rico. Preferred Capital Securities has raised more than $3 billion in retail capital across eight offerings which have issued approximately $1 billion in liquidity for its investors since the firm’s inception in 2011.

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