NewStar Exchange Fully Subscribes $19.1 Million, BTR Atlanta Community DST Offering

NewStar Exchange, a sponsor of Delaware statutory trust offerings, announced that NewStar 6 Tranquil Gardens BTR, DST has been fully subscribed. The offering raised $19.1 million in aggregate equity investment from Section 1031 exchange investors.

Preferred Capital Securities served as the managing broker-dealer.

“We are pleased to report the successful close-out of our third 1031 exchange Delaware statutory trust offering, and thank our new partners in this investment, and the investment advisers, financial representatives, and our broker-dealer, PCS, for their trust and support,” said Boone DuPree, chief executive officer for NEWSTAR of which NewStar Exchange is a subsidiary.

NewStar acquired Tranquil Gardens, a single-family built-for-rent community in the Atlanta suburb of Woodstock, in September 2023. At the time, it was 95% leased.

“NewStar Exchange has now successfully raised approximately $50 million in equity since launching two years ago and we look forward to bringing additional high-quality single-family build-to-rent DST offerings to the marketplace from our growing pipeline,” added DuPree.

“Tranquil Gardens has been an excellent performer to-date, meeting investment projections since closing, while we have successfully increased in-place rents by 6% on an annualized basis,” said Joe Gibson, chief investment officer for NEWSTAR. “The quality of the homes and location is evident in the approximately 25% rent premium we are achieving relative to our competitive set.”

Tranquil Gardens comprises 73 newly constructed three-bedroom and four-bedroom attached and detached townhomes for-rent in northwest Atlanta. The properties include feature two-car garages, vinyl tile floors, granite countertops, stainless steel appliances, and fenced-in backyards.

This was the company’s sixth investment since launching NEWSTAR in 2021, and the third investment by NewStar Exchange. NewStar sponsors DST investments for Section 1031 exchange and cash investors. It primarily invests in and manages Class A single-family BTR residential communities across the Sunbelt.

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 $4.9 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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