New Increased Yield Enhancement Feature of 6.5% for Apex South Creek, DST
June 31, 2023
This Yield Enhancement feature for investors in the Apex South Creek, DST providing increased returns in response to the thriving real estate market in the greater Orlando MSA.
Aliso Viejo, CA — Crew Enterprises, LLC, a prominent sponsor of Delaware Statutory Trust (DST) programs, is thrilled to announce the launch of a Yield Enhancement feature for investors in the Apex South Creek, DST. This initiative aims to provide increased returns and capitalize on the robust post-pandemic recovery and high demand in the greater Orlando MSA.
According to the National Association of Realtors, Florida led all U.S. states in positive net migration in 2022, with the greater Orlando MSA topping the list of areas with the largest inbound move rates (>56%) due to its strong post-pandemic recovery.
Apex South Creek’s prime location, superior construction quality, and exceptional amenities have contributed to an impressive 96% occupancy rate, even with the addition of new competitors. Management is currently implementing a rent growth strategy along with increased amenity fees. The property has been well-maintained, with no major repairs needed in the immediate future.
In light of recent data from industry sources Robert A. Stranger & Co. and Mountain Dell Consulting, indicating a slowdown in capital formation for DST programs, Crew Enterprises, LLC recognizes the opportunity to provide a win-win solution in the current economic environment.
Rather than continuing with business as usual, the Sponsor is introducing a Yield Enhancement feature for our existing DST properties. Specifically, Crew will increase the Stated Rent for investors in the Apex South Creek DST from 4% annually to 6.5% annually for a period of 24 months.
"We see this as a win-win situation because investors will enjoy higher cash-on-cash returns during this period, and the sponsor will reward investors insetad of incurring fees for preferred equity and bridge lenders until the market normalizes."
Crew Enterprises, LLC, as the Sponsor of Apex South Creek DST, is an affiliated entity of the Master Tenant Apex South Creek Leaseco, LLC. The Master Tenant generates revenue from the property’s operations, covering the Base Rent (Debt Service) and the entire previous Stated Rent (4.00%). The Sponsor will cover the difference between the Yield Enhancement (6.5%) and the DST’s original Stated Rent plus Bonus Rent (4.11%). Any exceptional performance of the property by the Master Tenant will offset the impact of the Yield Enhancement to the Sponsor.
The Sponsor’s ability to sustain this payment for the next 24 months will be supported by available cash-on-hand, future revenue-generating activities, and other product offerings. The Yield Enhancement feature will commence immediately and last a duration of 24 months. Crew Enterprises, LLC is excited to provide enhanced returns to Apex South Creek DST investors, taking advantage of the flourishing Orlando real estate market.
For more information about Crew Enterprises, LLC, please contact Tanya Muro at 877-827-6272 or by email at tanya@crewcos.com.
*The Yield Enhancement feature was updated in the second supplement to the PPM and was published on June 27, 2023. The Yield Enhancement period is 24 months ending June 27, 2025.
OFFERING DISCLOSURE
The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof (“Issuer”). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified. Past performance is no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.
REAL ESTATE RISK DISCLOSURE:
- There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – These assets are commonly offered through private placement offerings and are illiquid securities.
- Private Placements are Speculative. There is no secondary market for these investments.
- Private placements carry a high degree of risk.
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits.
- Stated tax benefits – Any stated tax benefits are not guaranteed and are subject to changes in the tax code.
- Speak to your tax professional prior to investing.
