NewStar Asset Management (“NewStar”) announced today that it has launched NewStar Exchange (“NewStar Exchange”), a sponsor of Delaware Statutory Trust (“DST”) offerings for Section 1031 exchange and other accredited investors. NewStar Exchange will invest in high quality multifamily and built-to-rent (“BTR”) communities in SunBelt markets of the United States, targeting suburban locations positioned to capture outsized growth from family formation (ages 30-49) and retirement (ages 65+) population categories.
“We are excited to announce the official launch of NewStar Exchange, a business in the making for the better part of two years,” said Boone DuPree, Chief Executive Officer for NewStar. “Through NewStar Exchange we will continue our focus on investing in high quality housing in growing markets across the Southeast, Texas, and broader ‘SunBelt’ region of the United States, with an emphasis on supporting family housing. We are equally excited to be partnering again with Jeff Smith, Eric Graber, and Preferred Capital Securities, which will be distributing NewStar Exchange’s DST offerings, after many years working successfully together across several billion dollars of fundraising in our predecessor business.”
In addition, NewStar Exchange announced today its acquisition of University Commons, a build-to-rent community located approximately 50 miles northeast of downtown Atlanta, Georgia. University Commons is 96% leased and features newly constructed two-story, single-family detached homes in 3-bed / 3-bath floorplans with granite countertops, stainless steel appliances, luxury vinyl tile flooring, and in-unit washer-dryer sets. Homes are attainably priced with average in-place monthly rents of $1,775, or $1.29 per square foot, and recent leasing at $1,900, or $1.38 per square foot. NewStar Exchange acquired the property all-cash on behalf of NE1 UC, DST.
“University Commons is a great first acquisition for NewStar Exchange,” said Joe Gibson, Chief Investment Officer for NewStar. “The newly constructed BTR community fits squarely within our stated strategy and will continue to benefit from its desirable location, which has seen significant recent employment and population growth.”
NE1 UC, DST seeks to raise $10.3 million in equity from accredited investors and has a minimum investment requirement of $100,000 for 1031 investors and $25,000 for cash investors. The offering is being marketed by Preferred Capital Securities.