NewStar Asset Management, a real estate-focused alternative investment and asset management company, has launched NewStar Exchange to sponsor Delaware statutory trust offerings for 1031 exchange and other accredited investors.
NewStar Exchange will focus on investing in multifamily and built-to-rent communities located in SunBelt markets, targeting suburban locations “positioned to capture outsized growth from family formation (ages 30-49) and retirement (ages 65+) population categories.”
“We are excited to announce the official launch of NewStar Exchange, a business in the making for the better part of two years,” said Boone DuPree, chief executive officer for NewStar. “Through NewStar Exchange we will continue our focus on investing in high quality housing in growing markets across the Southeast, Texas, and broader ‘SunBelt’ region of the United States, with an emphasis on supporting family housing.”
Preferred Capital Securities will distribute NewStar Exchange’s DST offerings.
NewStar Exchange’s first acquisition is University Commons, a build-to-rent community located approximately 50 miles northeast of downtown Atlanta. The property is 96 percent leased and is comprised of two-story, single-family detached homes with three-bed/three-bath floor plans. The homes are priced with average in-place monthly rents at $1,775, or $1.29 per-square-foot, and were recently leased at $1,900, or $1.38 per-square-foot.
NewStar Exchange purchased the property in an all-cash transaction on behalf of NE1 UC DST, a Delaware statutory trust offering that seeks to raise $10.3 million in equity from accredited investors. The minimum investment is $100,000 for 1031 investors and $25,000 for cash investors.
“University Commons is a great first acquisition for NewStar Exchange,” said Joe Gibson, chief investment officer for NewStar. “The newly constructed [build-to-rent] community fits squarely within our stated strategy and will continue to benefit from its desirable location, which has seen significant recent employment and population growth.”
Preferred Capital Securities is an independent, 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.
The company serves as the managing broker-dealer of NewStar Exchange, the preferred stock offering for Preferred Apartment Communities, the preferred stock offering for Prospect Capital Management, The Priority Income Fund, and WhiteHawk Minerals.
Since inception in 2011, the company has reportedly raised more than $3 billion in retail capital across eight offerings which have issued approximately $1 billion in liquidity for its investors.
For more Preferred Capital Securities news, please visit their directory page.