1031-Eligible Single Family Rental Home Community

the villages, fl

Property Details

39 UNITS
screened-in lanais, pool, cabana, and dog park amenities, and on-site property management

2021
year of construction

3 BEDROOM / 2 BATH
homes with attached 2-car garages

1,544 square feet
average home size

$1,996 per month /
$1.29 per square foot average
in-place rents

100%
leased

Footnote: All provided property statistics and market data considered current as of May 2022

Investment Rationale

Fastest-growing U.S.metropolitan area with a population of approximately 130,000 per the 2020 census, 39% higher compared to 2010.

Rare Villages family housing without an age-restriction.

Unlevered offering provides maximum flexibility without sacrificing yield.

ULI’s Emerging Trend Report forecasts retirement age (65+) population to be fastest growing in U.S. through 2030, adding 17 million.

Acquired through off-market transaction at attractive metrics.

22% Organic Rent Growth through initial lease-up with 7% mark-to-market remaining, and Costar forecasing 20% market rent growth through 2026.

Market Overview

THE VILLAGES, FL MSA

$64,933
Avg. HH Income

71.7
Median Age¹

  
        Fastest-growing U.S. metro for 2010-2019 according to the 2020 Census1
    
Largest active adult development in the world, spanning 3 counties and approximately 33,000 acres2
    
More than 50 golf courses, 200 pickleball courts, 100 tennis courts, 2,400 organized groups, and 100 miles of golf cart trail3
    
3,000 + clubs and activities
    
3 town squares featuring shopping, dining, and nightly live entertainment
    
Golf cart community with 90 miles of paved trail
    
Adding 4,000+ new homes annually
    
The median list price in The Villages is $425,000, a 31% year-over-year increase as of May 20204
    
The Villages Charter School ranked #6 best charter elementary and middle schools in Florida and #15 high school5

Offering Details

OFFERING COMMENCEMENT
CLOSED FEBRUARY 2023

ELIGIBILITY
Regulation D, 506c offering to accredited investors; available to accredited investors seeking capital gains tax deferral via 1031 exchange

PROPERTY WEBSITE
www.crescentbystella.com

MANAGING BROKER-DEALER
Preferred Capital Securities
www.pcsalts.com

Sources: (1) Census Bureau, “Most of the Counties with the Largest Population Gains Since 2010 are in Texas”, March 2020; (2) 55 Places, “The 10 Largest Active Adult Communities in America”, April 2020; (3) Inside The Bubble, “Cool Facts About The Villages Florida”, December 2021; (4) Realtor.com; (5) Niche.com

Footnote: All provided property statistics and market data considered current as of May 2022

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 the Investment Memorandum 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.
The Interests are subject to restrictions on transfer. Even if these transfer restrictions expire or are not applicable to a particular Investor, there is no public market for the Interests, and neither NEWSTAR Exchange nor the Trust will take any steps to develop a market. Investors should expect to hold their Interests for a significant period of time.
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 have not been, and will not be, registered with the SEC or any state securities commission. Since this is a nonpublic offering and, as such, is not registered under federal or state securities laws, a prospective Investor will not have the benefit of review or comment by the SEC or any state securities commission.
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.
NEWSTAR Exchange, the Administrative Trustee, the Master Tenant, and their respective affiliates are subject to conflicts of interest between their activities, roles and duties for other entities and the activities, roles and duties they have assumed on behalf of the Trust (or the Master Tenant). Conflicts exist in allocating management time, services and functions between their current and future activities and the Trust.
A delayed closing on the acquisition of an Interest could adversely affect the qualification of an exchange under Section 1031.
Future legislative or regulatory action could significantly change the tax aspects of an investment in an Interest.

Investors will not receive audited financial statements for the Property.
The Trustees have limited duties to Investors and may take actions that are not in the best interests of the Investors.
The Trustees will receive compensation, regardless of whether Investors have received distributions.
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.
Changes in global economic and capital market conditions, including periods of generally deteriorating real estate industry fundamentals, may significantly affect the value of the Trust’s investment 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 financial performance of the Property is depending upon the Residents and their payment of rent under their respective Leases. 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.
Unanticipated capital expenditures, maintenance costs and Uncontrollable Expenses related to the Property could affect Investors’ returns.
An increase in real estate taxes may affect the operating results of the Property and the Trust.
There can be no assurance that the insurance maintained by the Master Tenant will be sufficient to cover any particular liability or unanticipated loss.
A cybersecurity incident and other technology disruptions could negatively impact the Trust’s business and the Master Tenant’s relationships with the Residents.
Compliance with various laws could affect the operation of the Property. If the Property does not comply with these requirements, the Trust may incur governmental fines or private damage awards.

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.