CS1031 Colony at Centerpointe Apartments, DST

Overview

CS1031 Colony at Centerpointe Apartments, DST was formed to acquire Colony at Centerpointe, a 255-unit, Class A- garden-style apartment community built in 2016 on approximately 17.828 acres in Midlothian, Virginia, a suburb of Richmond. The Trust acquired the Property from an unaffiliated seller on June 18, 2026 for a purchase price of $74,600,000; the Property was approximately 94.1% occupied at closing. The acquisition was financed in part with a $41,774,000 non-recourse loan from KeyBank National Association under the Fannie Mae DUS program, bearing interest at a fixed rate of 5.02% and requiring interest-only payments for the full seven-year loan term. The Trust master-leased the Property to an affiliate of the Sponsor (the Master Tenant), which operates the Property and pays rent to the Trust, including a base rent component sized to cover debt service and lender reserve deposits, plus potential bonus rent once actual income exceeds an annual revenue benchmark. The Sponsor intends to make approximately $2,300,000 of strategic property improvements during the hold. At the end of the anticipated seven-year holding period, the Signatory Trustee expects to dispose of the Property by sale, or alternatively may elect to facilitate a Section 721 UPREIT contribution under which investors could exchange their Interests for operating partnership units of a Sponsor-affiliated REIT or instead take a cash buy-out.

Key highlights

• Colony at Centerpointe is a 255-unit, Class A- garden-style apartment community built in 2016 in Midlothian, Virginia, near Richmond.
• The offering totals $84,724,000 — $42,950,000 of equity and $41,774,000 of debt, roughly 49.31% loan-to-total-capitalization — with a $98,629 minimum investment.
• The Property is master-leased for seven years to a Sponsor affiliate, and its acquisition financing is interest-only for the entire seven-year loan term.
• Distributions are projected to begin at approximately 4.36% of equity in Year 1 and average approximately 4.95% over the seven-year forecast — these are the Sponsor's projections and are not guaranteed.
• The Sponsor targets an approximately seven-year hold, exiting via sale or an optional Section 721 UPREIT exchange into REIT operating partnership units.

Financials

Projected distributions

Year 1

4.36%

Year 2

4.44%

Year 3

4.66%

Year 4

4.96%

Year 5

5.16%

Year 6

5.35%

Year 7

5.70%

Projections from the sponsor’s offering documents. Distributions are not guaranteed and may be lower than shown or suspended. See the PPM for assumptions.

Property address

14400 Palladium Drive, Midlothian, Virginia 23114

Documents

• CS1031 Colony at Centerpointe Apartments DST - PPM