✓Preferred: underwriting indicates this investment is likely going to cover its expenses and return positive returns.

Current Offerings / Government Lease Holdings 2 DST

Limited Availability506(c)721 Exchange: Optional

Government Lease Holdings 2 DST

SponsorNet Lease Capital Advisors

LocationNorth Carolina, Maryland

Property TypeHealthcare, Medical Office, Government Office, Office, Net Lease

$402,397,396

Total Investment

56.6%

LTV

4.65%

Income Average

10 years

Estimated Hold Period

Investment Description

The Master Trust indirectly owns a 353,238-square-foot Department of Veterans Affairs outpatient clinic in Kernersville, North Carolina and a 574,767-square-foot USCIS build-to-suit headquarters in Camp Springs, Maryland. Both properties are leased directly to U.S. government agencies. The VA lease expires December 2035; the USCIS lease expires January 2035 with a seven-year renewal option.

The $402.40 million total capitalization includes $227.745 million of allocated debt at 56.6% LTV. Debt comprises VAWS 2020 bonds at 2.872% maturing July 2035 and a USCIS loan at 4.83%, interest-only through March 2035 and maturing March 2042 subject to a 2035 prepayment condition. The distribution schedule is $655,000 monthly through 2029, $691,000 monthly in 2030–2031, and $727,500 monthly thereafter. A 721 contribution may be considered, and investors would be offered an option to take cash or participate.

Investment Sponsor

Net Lease Capital Advisors

Availability Status

Limited Availability

Registration

506(c)

721 Exchange

Optional

Property Type

Healthcare, Medical Office, Government Office, Office, Net Lease

Equity

$174,652,396

Debt

$227,745,000

Total Investment

$402,397,396

LTV

56.6%

Lender

NH Health & Education Facilities Authority / U.S. Bank Trust (VAWS bonds); USCIS Lease Finance Trust

Amortization

USCIS: interest-only through March 2035, then amortizing; VAWS: bond/balloon structure

Estimated Hold Period

10 years

Projected Cash Flow

Cash Flow Basis: Projected Investor Distribution · Forecast Through: Year 10 · Post-Forecast Treatment: 10-Year Projection

PPM provides a 10-year investor distribution forecast: 4.50% in Years 1-6, increasing to 5.00% in Years 9-10.

Highlights

Direct U.S. government leases support counterparty quality at both assets.

Two-property exposure spans a VA outpatient clinic and a USCIS headquarters in separate states.

Asset-management fees are subordinated to the stated projected monthly investor distributions.

Distribution schedule steps from approximately 4.50% to 5.00% of maximum equity over time.

Any 721 contribution would give investors a documented cash-or-participation election.

Jerry Baker's Notes

Before you read these notes

Jerry Baker's Notes are his opinion, shared to help frame a conversation. They are not investment advice, a recommendation, or an offer, and they are not a substitute for the offering documents. Review the Private Placement Memorandum for complete information, including risk factors, before making any decision.

I understand · Show the notes

The investment has strong tenant credit but not a simple one-loan risk profile. The 56.6% LTV combines two separate debt stacks: 2.872% VAWS bonds maturing in 2035 and a 4.83% USCIS loan that remains interest-only until 2035, then amortizes, with a lease-renewal-linked prepayment condition. The cash flow is more stable than conventional office underwriting, but the exit must solve both 2035 lease and debt events.

The key operating risk is agency lease continuity and the property owner's service/maintenance obligations. Direct federal tenancy does not make the leases unconditional: performance failures can create rent offsets or termination rights. The 721 path is optional for investors if the Trustee elects to pursue it, not a promised liquidity event.

Property Addresses

11695 Kernersville Medical Parkway, Kernersville, NC 27284

25900 Capital Gateway Drive, Camp Springs, MD 20746

Offering Documents

Download all documents (.zip)

Government Lease Holdings 2 DST - PPM.pdfDownload Government Lease Holdings 2 DST - Brochure.pdfDownload

Documents are provided by the sponsor for registered investors. Review the Private Placement Memorandum in full, including risk factors, before making any decision.

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