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BT Athens Student Housing DST property photo

BT Athens Student Housing DST

Sponsored by Baker Tilly
Minimum Investment$100,000
Total Offering$72,100,000
Available Equity$37,725,000 100.00% available
Equity$37,725,000
Debt$34,375,000
In-Place LTV47.68% LTV
Average Yield4.96%
Est. Tax-Adjusted Yield¹11.54%
Cap Rate Equivalent8.52%
LocationOH
Estimated Hold Period2 years
721 Exchange ExitMandatory
Total Load19.58%
StrategyCore-Plus
StatusComing Soon / Under Review

Overview

BT Athens Student Housing DST is a $72.1 million Delaware Statutory Trust offering The Summit at Coates Run, an 856-bed, 239-unit Class A student housing community about one mile from Ohio University in Athens, Ohio. Built in 2009 and renovated in 2019 and 92.98% occupied at the offering date, it is sponsored by Baker Tilly, the 10th-largest accounting and advisory firm in the U.S. The DST carries fixed-rate, interest-only financing through Old National Bank and projects a 4.70% first-year distribution rising to 5.21% by year 10 (4.96% average), with a $100,000 minimum and a full 721 UPREIT exit option.

Highlights

856-bed, 239-unit Class A student housing community about one mile from Ohio University (30,682 students, up 3.6% year over year).

4.70% Year-1 distribution rising to 5.21% by Year 10 (4.96% average).

Fixed-rate, interest-only loan (5.72%, Old National Bank); 47.68% LTV; 2.04x Year-1 DSCR.

Built 2009, renovated 2019; 92.98% occupied; fully furnished, by-the-bed leasing.

Sponsored by Baker Tilly; $100,000 minimum; full 721 UPREIT exit option.

Analysis

Insights

Best for income-oriented 1031 investors comfortable with student-housing seasonality. The 721 option allows a future tax-deferred roll-up, but the high equity load and flat early yield reward a long hold.

Advantages

Stabilized student-housing asset serving a major state university with historically high occupancy and limited new supply; fixed-rate interest-only debt removes near-term rate risk; experienced advisory-firm sponsor; 721 UPREIT optionality.

Concerns

Student housing must re-lease every academic year with summer lease-up risk; competitive nearby supply; flat distribution growth in years 1-5; roughly 19.6% load on equity; long-term U.S. college enrollment is projected to decline.

Projected Distributions

Average Yield4.96%
Est. Tax-Adjusted Yield¹11.54%
Cap Rate Equivalent8.52%
Y14.70%
Y24.72%

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

Financing

LenderOld National Bank
Interest Rate5.72% (Fixed)
Loan Term10 years
I/O Period10 years
AmortizationN/A (interest-only)
Y1 DSCR2.04x

Benchmarks

Avg. Income
This deal4.96%
Market
Not Analyzed
Growth
This deal0.43%
Market
Not Analyzed
Peak
This deal4.72%
Market
Not Analyzed

Benchmarks compare this offering’s projected figures against sector medians computed across current offerings tracked by Baker 1031 Investments as of the last-updated date shown. Benchmark data is internal, unaudited, and subject to change.

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