The Raleigh, North Carolina Medical Office Building (MOB) DST successfully delivers uninterrupted distributions for Kay Properties investors as well as meaningful appreciation. The DST offering was a custom program designed exclusively for Kay Properties clients.
Key Highlights:
- Custom Medical Office Building DST property goes Full-Cycle
- The DST investment realized an 12.14% total annualized return for investors and a 1.91x equity multiple. **
- The Raleigh MOB DST offering successfully delivered uninterrupted monthly distributions at an average annualized rate of 6.07% throughout the 7.5 year hold period and throughout the COVID-19 pandemic. **
- Custom Medical Office Building delivered meaningful equity growth, and appreciation for Kay Properties 1031 exchange and DST direct cash investors.*
LOS ANGELES, Aug. 16, 2023 — Kay Properties and Investments, a national real estate investment firm and operator of the www.kpi1031.com investment marketplace that specializes in Delaware Statutory Trust investment options for 1031 exchange and direct cash investments, announced their strategically located Raleigh, NC DST Medical Office Building offering went full cycle on behalf of multiple 1031 exchange and direct cash investors.
“Full Cycle” is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.
According to Dwight Kay, Founder and CEO of Kay Properties, the Raleigh, NC DST investment sold for $6,950,000 on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the same day that the property was purchased, realized a 12.14% total return and a 1.91x equity multiple** on their investments.
“Like many of our DST offerings, the Raleigh, NC Medical Office Building DST was offered to both 1031 Exchange and direct cash investors. We are very pleased to have provided another successful custom DST investment opportunity for our clients that resulted in a full-cycle liquidity event with meaningful uninterrupted monthly cash flow distributions, equity growth and appreciation*. As always, past performance does not guarantee future results and we encourage all investors to read each Private Placement Memorandum (PPM) in its entirety prior to investing in real estate and DST offerings,” said Kay.
Chay Lapin, President of Kay Properties also pointed out that the Raleigh, NC offering provided investors uninterrupted monthly distributions throughout the hold period and during the entire COVID-19 pandemic, a significant accomplishment considering the volatility of many other real estate investments during the Coronavirus pandemic.
“While past performance does not guarantee or indicate the likelihood of future results, our Raleigh, NC is another great example of why Kay Properties is committed to providing investors quality Delaware Statutory Trust offerings that are designed to mitigate risk* through a variety of investment strategies,” said Lapin.
Kay Properties Executive Vice President and Managing Director, Betty Friant explained that one of the investment strategies that Kay Properties continues to emphasize is identifying geographic locations that have the potential to provide value for investors.
“This Medical Office Building DST is a great example of this. Kay identified the Raleigh Metropolitan area is home to some of the largest national and international employers, including SAS Institute, MetLife, Caterpillar, John Deere, Verizon Wireless, Siemens Medical Solutions USA, Kellogg’s Snacks, and Oxford University Press. In addition, the Raleigh region is home to some of the nation’s top universities, including Duke University, North Carolina State University and the University of North Carolina at Chapel Hill, as well as other numerous well-regarded local colleges. The Kay Properties team felt that the combination of these ingredients coupled with the quality of the asset itself would have the potential to deliver positive returns for our investors. Of course, we always want our investors to know and understand the risk factors of real estate and DST investments as well as we strive to remind them that past performance of any Delaware Statutory Trust investment such as this one will not guarantee future results,” said Friant.
According to Jason Salmon, Executive Vice President and Managing Director, the entire Kay Properties team played an important role in educating clients on the potential benefits and the potential risks of investing in real estate and DST investments.
“While there are never any guarantees when it comes to real estate, we are honored to have been able to provide this positive outcome to our investors. Many clients come to Kay Properties wondering ‘Are DSTs a good investment?’, and the answer to that is simple, yes they can potentially be good and equally so, they can be bad. For those investors that invested with other groups outside of Kay Properties into a senior care or hospitality DST that stopped paying cash flow and resulted in a loss of principal, the DST investment was not good. For those investors that participated in this Kay Properties custom DST in Raleigh, NC that just went full cycle at a 1.91x equity multiple, it was indeed a good DST investment. Unfortunately, with all real estate investments there are no guarantees for cash flow or appreciation as well as property values can go up and they can go down, which is why it is vitally important for investors to read each offerings Private Placement Memorandum (PPM) to understand the business plan and risk factors of the offering. Also, it is important that investors understand that there are indeed higher risk asset classes in the DST space such as senior care and hospitality that over the years have often underperformed for investors. At Kay Properties, we strive to educate our investors on these risk factors as well as to reject all senior care and hospitality DST offerings to reduce potential risk for our investors.
About Kay Properties and www.kpi1031.com
Kay Properties & Investments is a national Delaware Statutory Trust (DST) investment firm. The www.kpi1031.com platform provides access to the marketplace of DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients, independent advice on DST sponsor companies, and real estate research and analysis on each DST (typically 20-40 DSTs). Kay Properties team members collectively have over 200 years of real estate experience and have participated in over $30 billion of DST 1031 investments.
Past performance does not guarantee or indicate the likelihood of future results. Diversification does not guarantee profits or protect against losses. All real estate investments provide no guarantees for cash flow, distributions or appreciation as well as could result in a full loss of invested principal. Please read the entire Private Placement Memorandum (PPM) prior to making an investment. This case study may not be representative of the outcome of past or future offerings. Please speak with your attorney and CPA before considering an investment.
* Annualized return is defined as a total return including profit on sale and monthly distributions earned on an annualized basis.
** Total return consists of initial return of investor principal, monthly distributions, and profit upon sale.
*** Equity multiple is defined as the total cash distributions received from an investment, divided by the total equity invested.
**** All return calculations are calculated as if the investor closed on the DST investment at the same time the property was purchased.
There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. All offerings discussed are Regulation D, Rule 506c offerings. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential distributions, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals, and risk tolerances. Securities offered through FNEX Capital, member FINRA, SIPC.
SOURCE Kay Properties and Investments
