Walton Global, a global real estate investment and land asset management company, announced the launch of its North Carolina Growth 1 DST offering, which seeks to raise up to $2.4 million from accredited investors. The Delaware statutory trust owns 72 acres of residential land that has been pre-approved for 103 single-family lots in the city of Gastonia as part of the Springhaven Master Plan.
Originally launched in March 2023, Walton’s strategy for its DST offerings focuses on all-equity growth opportunities targeting potentially higher investor returns than traditional DSTs, along with hold periods that are not unnecessarily extended, unlike other options that often have longer hold times due to repayment limits. The North Carolina Growth 1 DST exit strategy is targeted to be 3-5 years and offers new opportunities for financial professionals to further diversify their clients’ DST portfolios, by including an aspect of “growth.”
The Springhaven Master Plan was strategically selected to boost residential inventory to meet the housing demand in the region and support the sharp increase in population. Located near Beaty Road and Beacon Hills Drive, the parcel of land provides the convenience of being 25 minutes to Charlotte Douglas International Airport, 30 minutes to Charlotte, and 15 minutes from the city of Gastonia. Residents of this new community will also benefit from proximity to the more than 30 international companies in Gaston County, several schooling options, medical centers and many other recreational and entertainment offerings.
“We’re thrilled to be continuing our DST growth strategy in 2024 with the newest land product outside of Charlotte, North Carolina, a region we’ve remained committed to supporting,” said Michael Slavotinek, vice president of the Mid-Atlantic and Carolinas region at Walton Global. “This kind of land-based offering is uncommon in the DST space, but it’s one we believe will be a popular choice over the coming years, as it benefits not only investors and homebuilders, but also the growing number of home buyers in the market.”
Walton Global successfully raised capital in 2023, including for the closing of its first retail DST called Georgia Growth 1 DST. The company anticipates this model will become increasingly popular due to the expected market-driven increase in land value. Escalation in land value is anticipated to occur when a homebuilder signs a purchase and sale agreement for land parcel and starts the process of obtaining necessary entitlements to build homes. Any potential financial benefit from this investment strategy will be transferred to the DST investors at the time of the land sale.
“We believe the North Carolina Growth 1 DST exchange offering is a great opportunity for accredited investors who are looking to diversify their portfolio, defer their capital gains taxes, and preserve their capital through a hard asset by using a growth strategy,” said Todd Woodhead, senior vice president of capital markets at Walton Global.
According to Walton, it continues to acquire a strong pipeline of DST properties in growth regions across the country, hold the properties for growth in value as contemplated by 1031 tax regulations, and market the properties to its established network of U.S. homebuilders after the hold period ends.
Walton Global is a privately owned land asset management and real estate investment company with $3.4 billion in assets under management and more than 93,000 acres of land under ownership, management, and administration in the United States and Canada.