NewStar Exchange Fully Subscribes DST Offering for Newly Constructed Built-to-Rent ("BTR") Community in Atlanta, Georgia

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NewStar Exchange, a subsidiary of NEWSTAR, has fully subscribed its NewStar 6 Tranquil Gardens BTR, DST offering, raising $19.1 million from Section 1031 exchange investors. This marks the company's third successful 1031 exchange Delaware Statutory Trust offering, bringing their total equity raised to approximately $50 million since launching two years ago.

The Tranquil Gardens project comprises 73 newly constructed three-bedroom and four-bedroom homes for rent in northwest Atlanta, Georgia. The community has been performing well, meeting investment projections and achieving a 6% annualized increase in in-place rents. Notably, it's commanding a 25% rent premium compared to its competitive set.

Preferred Capital Securities (PCS) served as the managing broker-dealer for this offering. PCS has a strong track record, having raised over $3 billion in retail capital across 8 offerings since 2011.

ATLANTA, Aug. 19, 2024 /PRNewswire/ -- NewStar Exchange, a subsidiary of NEWSTAR, announced today that NewStar 6 Tranquil Gardens BTR, DST has been fully subscribed. The offering raised $19.1 million in aggregate equity investment from Section 1031 exchange investors. Preferred Capital Securities (PCS) served as the managing broker-dealer.

"We are pleased to report the successful close-out of our third 1031 exchange Delaware Statutory Trust offering, and thank our new partners in this investment, and the investment advisors, financial representatives, and our broker-dealer, PCS, for their trust and support," said Boone DuPree, Chief Executive Officer for NEWSTAR. "NewStar Exchange has now successfully raised approximately $50 million in equity since launching two years ago and we look forward to bringing additional high-quality single-family build-to-rent DST offerings to the marketplace from our growing pipeline."

"Tranquil Gardens has been an excellent performer to-date, meeting investment projections since closing, while we have successfully increased in-place rents by 6% on an annualized basis," said Joe Gibson, Chief Investment Officer for NEWSTAR. "The quality of the homes and location is evident in the approximately 25% rent premium we are achieving relative to our competitive set."

Tranquil Gardens comprises 73 newly constructed three-bedroom and four-bedroom attached and detached homes for-rent in northwest Atlanta, Georgia.  

About NewStar Exchange: NewStar Exchange is a subsidiary of NEWSTAR that sponsors Delaware Statutory Trust investments for Section 1031 exchange and cash investors. The Company primarily targets high quality build-to-rent housing communities in growing suburban locations of the United States "Sun Belt". For more information, please visit www.newstar-am.com.  

About Preferred Capital Securities ("PCS"):  PCS (Member FINRA/SIPC) is a fully independent, third-party Managing Broker Dealer focused on both back-office solutions and the wholesale distribution of alternative investments to Independent Broker-Dealers (IBDs) and Registered Investment Advisors (RIAs) across the United States and Puerto Rico.  PCS is currently the Managing Broker Dealer of NewStar Exchange, the Preferred Stock offering for Prospect Capital Management (NASDAQ: PSEC), The Priority Income Fund, and WhiteHawk Income Corporation. With a track record that empowers their partners to embark with confidence, PCS is proud to have raised over $3 Billion in retail capital across 8 offerings which have issued approximately $1 Billion in liquidity for its investors since the firm's inception in 2011. To learn more about PCS please visit www.pcsalts.com.

Contact: NewStar1031@pcsalts.com

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SOURCE NewStar Asset Management

FAQ

How much equity did NewStar Exchange raise for the Tranquil Gardens BTR, DST offering?

NewStar Exchange raised $19.1 million in aggregate equity investment from Section 1031 exchange investors for the NewStar 6 Tranquil Gardens BTR, DST offering.

What is the total equity raised by NewStar Exchange since its launch?

NewStar Exchange has successfully raised approximately $50 million in equity since launching two years ago.

How many homes are included in the Tranquil Gardens project?

The Tranquil Gardens project comprises 73 newly constructed three-bedroom and four-bedroom attached and detached homes for rent in northwest Atlanta, Georgia.

What rent premium is Tranquil Gardens achieving compared to its competitors?

Tranquil Gardens is achieving approximately a 25% rent premium relative to its competitive set.

Who served as the managing broker-dealer for the NewStar Exchange offering?

Preferred Capital Securities (PCS) served as the managing broker-dealer for the NewStar Exchange offering.