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Overview

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.

THE PROPERTIES

THE VILLAGES

39 newly constructed single-family rental homes in The Villages, Florida:

  • New construction Built-To-Rent community
  • 3-bed / 2-bath homes with garages, screened-in lanai’s, and high end interior finishes
  • Centrally located in The Villages, the largest active adult community in the United States
  • Rare non-age restricted housing serves broader population including employees of The Villages and their families
UNIVERSITY COMMONS

23 newly constructed single-family rental homes on 3.3 acres in Northeast Atlanta, Georgia

  • Built-To-Rent community approximately 50 miles northeast of Atlanta, Georgia
  • 3-bed / 3-bath single family homes delivered in 2022
  • All homes feature granite countertops, stainless steel appliances, luxury vinyl tile flooring throughout, and in-unit washer-dryer sets

RISK FACTORS & DISCLOSURES

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). THIS MATERIAL MUST BE PRECEDED OR ACCOMPANIED BY A 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.

Important Risk Factors to Consider

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 this Memorandum and should consult with his, her or its attorney, tax advisor, and business advisor prior to making the investment.
  • The economic success of the Interests will depend upon the results of operations of the Property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the Property difficult or unattractive. If a large number of Residents become unable to make rental payments when due, decide not to renew their Leases, or decide to terminate their Leases, this could result in a significant reduction in rental revenues and, in turn, distributions to Investors.
  • Distributions are not guaranteed and there is no assurance that dividends will be made or that any particular rate of distribution will be maintained.
  • The Interests are not freely transferable by the Beneficial Owners
  • An Investor will acquire the Interests in the Trust, the assets of which will consist solely of the Property and the Master Lease. Thus, an investment in the Interests will not be diversified as to the type of asset, tenant mix or geographic location.
  • Economic, market, and regulatory changes that impact the real estate market generally may decrease the value of the Property and the Master Tenant’s operating results.
  • Volatile economic conditions may adversely affect the Trust’s income and exit strategies. Further, the fluctuation in market conditions makes judging future performance of real estate assets difficult.
  • The Trust’s operations and financial conditions could be adversely impacted by significant inflation or deflation.