Origin Investments Makes First Acquisition for Recently Launched DST Platform

Multifamily investment sponsor Origin Investments has completed its first Delaware statutory trust acquisition as part of its newly launched Origin Exchange investment program. The sponsor purchased The Starling, a 300-unit multifamily community located in the Dallas suburb of Princeton, Texas.

According to Origin, The Starling DST was 65% reserved prior to closing with positions starting at $250,000 and offered to owners of real estate interested in utilizing a 1031 exchange to step out of an actively managed property investment.

“We are excited to kick off our Origin Exchange program with an acquisition of this caliber,” said Michael O’Shea, vice president, Origin Exchange. “This institutional-quality property meets the demands of 1031 exchange investors seeking to transition out of active management and into a professionally managed asset that maximizes long-term investment returns.”

As previously reported by The DI Wire, Origin launched the Origin Exchange platform earlier this summer. The platform is designed for direct investment by retail investors, as well as registered investment advisers that allocate their clients’ capital to Origin offerings.

Origin Exchange allows qualified 1031 exchange investors to access “institutional-quality” multifamily property investment opportunities and enjoy the tax advantages and estate-planning efficiencies of a 1031 exchange at a fraction of what the company has stated are typical fee structures of Delaware statutory trust programs distributed via financial advisers. Origin also reported that qualified 1031 exchange investors may receive benefits including the indefinite deferral of federal capital gains taxes, the potential for passive income and depreciation deductions, and simplified estate planning. Positions in the DST start at $250,000.

In addition to being the Origin Exchange program’s first DST acquisition, The Starling represents Origin’s first common equity acquisition of an existing multifamily community since March 2020. The property, which was completed in 2022, consists of 11 three-story, garden-style Class A residential buildings on a 12-acre site. Its 300 residences consist of 36 studio units averaging 622 square feet, 117 one-bedroom units averaging 735 square feet, 129 two-bedroom units averaging 1,078 square feet and 18 three-bedroom units averaging 1,339 square feet. The community features 30 detached garages, 56 carports and 454 surface parking spaces.

Individual units are equipped with high-end features including stainless steel appliances, quartz and granite countertops, luxury wood-style plank flooring and keyless entry systems. Community amenities include a resort-style pool area, grilling area, clubhouse, kitchen and dining area, two private business offices and a conference room, entertainment area and game areas and a dog park.

The Starling was approximately 92% occupied at the time of acquisition. The sale price was not disclosed. The Starling’s acquisition comes on the heels of Origin’s recent refinancing of The Rosie multifamily community, located in Chicago, and part of Origin’s initial qualified opportunity zone fund investments.

Founded in 2007, Origin Investments is a private real estate manager that helps high-net-worth investors, family offices and registered investment advisers grow and preserve wealth by providing tax-efficient real estate solutions through private funds. As of June 30, 2024, the firm reported $2.8 billion in assets under management.

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