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NewStar Exchange
NewStar Exchange is a 1031 exchange sponsor that primarily invests in income-producing multifamily
and single-family residential properties in major Sun Belt markets of the United States. The Company
believes this region demonstrates attractive long-term market fundamentals that may result in strong
operating performance and favorable capitalization rates for valuations upon exit.
Investment Rationale
Acquisition Near Replacement Cost
The $193 per square foot NEWSTAR purchase price is in-line with cost to build.
Significant Discount to 2022 Pricing
Previously marketed for sale in 2022, seeking $465,000 per home compared to $348,053 per home NEWSTAR purchase price
(+34%).
Underwritten Rents Offer Discount to Homeownership
Comparable new construction townhomes for sale are asking $360,000-$450,000, resulting in a median monthly cost to own of $2,880, +21% higher than underwritten rents at Sweetwater Springs1.
Conservative Underwriting Creates Upside
1. Underwritten market rents are at a discount to current average in-place rents. 2. 92.8% average underwritten economic occupancy is below current occupancy. 3. Projected 2.2% average annual NOI growth trails the 10 and 15 year average rent growth for the submarket (3.9% annually)2.
1 Realtor.com; January 2, 2026;
2 Costar – Outlying Gwinnett County submarket – January 2026
Offering Details
| OFFERING SIZE | $21,808,522 |
| OFFERING COMMENCEMENT DATE | February 2026 |
| OFFERING TERMINATION DATE | February 2026 |
| ESCROW BREAK | None |
| ESTIMATED HOLD PERIOD | 5-10 years |
| EXIT STRATEGY | Primary: sell on the open market to third-party investor. Secondary: optional 721 Exchange |
| STRUCTURE | Delaware Statutory Trust (DST) |
| OFFERING TYPE | 1031 |
| INVESTOR TYPE | Accredited (no exceptions) |
| TAX REPORTING | 1099 |
| MINIMUM INVESTMENT | $100,000; $25,000 for cash investors |
| SECURITY | Interests in the DST |
| INVESTMENT OBJECTIVE | Current income & tax deferral with the potential for capital appreciation |
| MASTER LEASE | Yes |
| SPRING LLC FEATURE | Yes |
| ALLOW CASH INVESTMENTS | Yes |
| DISTRIBUTIONS* | Monthly |
| INVESTOR STATEMENTS | Quarterly |
| OFFERING LEVERAGE | 45% |
*Distributions are not guaranteed and there is no assurance that dividends will be made or that any particular rate of distribution will be maintained.
DISCLOSURES
The Interests are speculative and involve a high degree of risk. A prospective Investor should be able to bear a complete loss of his, her or its investment.
The risks include:
- An Investor may not realize a return on the Investor’s investment and could lose the entire investment. For this reason, a prospective Investor should carefully read the Private Placement Memorandum (PPM) and should consult with his, her or its attorney, tax advisor, and business advisor prior to making the investment.
- There is no public market for the Interests and the Interests are being offered and sold pursuant to exemptions from the registration provisions of federal and state law.
- Distributions are not guaranteed and there is no assurance that dividends will be made or that any particular rate of distribution will be maintained.
These and other risks may impact NewStar Exchange’s financial condition, operating results, returns to its investors, and ability to make distributions as stated in the PPM. This investment is for accredited investors only and a PPM can be provided to accredited investors upon request.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved any offering of the Trust. Any representation to the contrary is a criminal offense.
THIS IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY THE SECURITIES DESCRIBED HEREIN. AN OFFERING IS MADE ONLY BY THE PRIVATE PLACEMENT MEMORANDUM (PPM). YOU SHOULD READ THE PPM IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. AN INVESTMENT IN THE TRUST SHOULD BE MADE ONLY AFTER CAREFUL REVIEW OF THE PPM. ALL INFORMATION CONTAINED IN THIS MATERIAL IS QUALIFIED IN ITS ENTIRETY BY THE TERMS OF THE PPM. THE ACHIEVEMENT OF ANY GOALS IS NOT GUARANTEED.
This material contains forward-looking statements relating to the business and financial outlook of the Trust, that are based on the company’s current expectations, estimates, forecasts, and projections, and are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this material. Such factors include those listed above, and those described in the “Risk Factors” section of the PPM. Forward-looking statements in this material speak only as of the date on which such statements were made, and the company undertakes no obligation to update or revise any such statements whether as a result of new information, future events or otherwise.