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LSC Fort Washington MD DST property photo

LSC Fort Washington MD DST

Sponsored by Livingston Street Capital
Minimum Investment$100,000
Total Offering$42,730,000
Available Equity$11,734,187 54.5% available
Equity$21,530,000
Debt$21,200,000
In-Place LTV49.60% LTV
Average Yield5.30%
Est. Tax-Adjusted Yield¹11.44%
Cap Rate Equivalent8.51%
LocationMD
Estimated Hold Period10 years
721 Exchange ExitNone
StrategyCore
Offering Type506(c)
Connected REIT—
StatusAvailable

LSC Fort Washington MD DST Overview

LSC-Fort Washington MD, DST is a Delaware statutory trust offering, sponsored by Livingston Street Capital, LLC, that gives accredited investors fractional, 1031-eligible ownership of Chestnut Oaks, a 150-unit age-restricted (active-adult / independent-living) multifamily community for seniors located at 1800 Palmer Road, Fort Washington, Maryland 20744, within the Washington, D.C. metropolitan area. Built in 2007 and situated on approximately 11.027 acres, the property is a four-story elevator building with roughly 143,632 leasable square feet, 165 parking spaces (18 ADA), and a resident amenity package that includes a leasing office, a clubhouse with kitchen, lounge and community room, fitness center, game room, theater room, hair salon, library, and BBQ area. The unit mix is 25 one-bedroom and 125 two-bedroom homes averaging about 958 square feet, and the community was approximately 95.3% occupied as of June 2, 2026, having exceeded 91% occupancy since January 2023 with an average resident length of stay of roughly 4.03 years. The Trust acquired the property in January 2026 for a purchase price of $34,250,000 (against an as-is appraised value of $35,000,000) and is offering $21,530,000 of beneficial interests, representing 100% of the Trust, alongside a $21,200,000 fixed-rate first mortgage from Morgan Stanley Bank, N.A. The property is leased to an affiliated master tenant under an approximately ten-year master lease, and day-to-day operations are handled by Allure Active Adult Communities, a Sponsor affiliate that specializes in 55+ housing. As a DST, the structure is designed so that each investor is treated as owning a direct interest in the underlying real estate for purposes of Section 1031, making the offering suitable for exchange investors (minimum $100,000) and cash investors (minimum $50,000) who seek passive, professionally managed senior-housing exposure, current income, and tax deferral, and who do not need liquidity. The stated business plan is to operate and selectively improve the asset, pay regular distributions from net cash flow, preserve value, and ultimately sell the property before loan maturity to return investor capital.

Highlights

Chestnut Oaks sits in Fort Washington, Maryland, inside the Washington, D.C. metropolitan area, with direct proximity to three major arteries - Interstate 495, Interstate 295, and MD-210 - that connect residents to healthcare, retail, dining, and employment across the region, including the National Harbor and Ronald Reagan Washington National Airport, along a scenic Potomac River setting that one industry ranking cited as a top place to retire. The submarket is supported by favorable senior demographics: within a five-mile radius the population aged 65 and older is projected to grow 9.9%, from 41,440 to 45,539, and to reach roughly 20.4% of the total population, while median household income is about $104,508 and the average home value is roughly $626,282. The broader Washington-Arlington-Alexandria apartment market carried an occupancy rate of about 95.6% with year-over-year effective rent growth near 2.5%, and, per a December 2025 appraisal, there were no new units under construction in the property's competitive submarket - an important limiter on future supply.

The asset is a well-located, 2007-vintage senior community that prior ownership reportedly maintained well and enhanced with approximately $1.51 million of capital improvements. Its 150 residential units break down as 25 one-bedroom homes (averaging 773 square feet and roughly $1,806 in-place monthly rent) and 125 two-bedroom homes (averaging 994 square feet and roughly $2,018 in-place monthly rent), for a blended average of about 958 square feet and $1,981 per month, or $2.08 per square foot, per the June 2, 2026 rent roll. Occupancy of approximately 95.3% as of June 2026, a track record above 91% since January 2023, and an average resident tenure of about 4.03 years point to durable, sticky demand. Residents enjoy a robust amenity set - clubhouse with kitchen, lounge, community room, fitness center, game room, theater room, hair salon, library, and BBQ area - and operations are run by Allure Active Adult Communities, a Sponsor affiliate focused on the 55+ segment that currently manages fifteen communities totaling 2,411 units.

The offering is capitalized with $21,530,000 of equity (50.4%) and a $21,200,000 first mortgage (49.6%) from Morgan Stanley Bank, N.A., for total capitalization of $42,730,000. The loan carries a fixed 5.95% interest rate and is interest-only for its full term, with monthly payments ranging from about $98,109 to $108,621 and a February 1, 2036 maturity; because there is no principal amortization, a balloon of $21,200,000 is due at maturity. Leverage is moderate for a DST - approximately 49.6% loan-to-cost on total offering funds and about 61.9% loan-to-value against the $34,250,000 purchase price. The debt is non-recourse to the Trust and to investors, with only a limited guaranty from Sponsor principal Peter V. Scola for customary carve-outs. The fixed rate removes near-term interest-rate risk on the debt, and the Trust has funded multiple lender- and trust-controlled reserves - including a $775,000 capital reserve, a $667,600 replacement reserve, and tax, insurance, and radon escrows - to support ongoing operations and planned capital work, with any unused reserves distributed to investors at sale.

The offering is sponsored by Livingston Street Capital, LLC, a boutique commercial real estate private equity firm headquartered in Radnor, Pennsylvania, that focuses on residential product, including age-restricted active-adult and independent-living communities. The Sponsor reports having acquired 25 properties across its DST programs, 19 of which are multifamily, active-adult, or independent-living assets totaling more than 3,000 units across 12 states, and its senior leadership team collectively has more than 75 years of experience across real estate and capital markets. The Trust's affiliated property manager, Allure Active Adult Communities, is a dedicated 55+ operator that currently manages fifteen affiliated communities comprising 2,411 units, all part of Sponsor-originated DST programs, and applies technology and lifestyle programming intended to drive rents and retention. An affiliated asset manager oversees the investment, while an independent trustee (Chris Sorensen) and a Delaware trustee provide the customary DST governance framework, and the Signatory Trustee, another Sponsor affiliate, is responsible for operating the Trust.

Structured as a Delaware statutory trust intended to qualify as an investment / grantor trust, the offering is designed so that each investor is treated as owning a direct interest in the underlying real estate for federal tax purposes, allowing an interest to serve as replacement property in a Section 1031 exchange. Special Tax Counsel, Holland & Knight LLP, has delivered a tax opinion that an investor's acquisition of an interest 'should' be treated as a direct acquisition of the property for Section 1031 purposes - though no IRS ruling has been or will be obtained. Exchange investors may enter with a minimum of $100,000, and each 1.0% interest is allocated $212,000 of the loan to help satisfy debt-replacement requirements. The structure lets investors defer capital gains while stepping into passive, professionally managed real estate and, at death, potentially pass interests to heirs at a stepped-up basis. Investors should note that the exit strategy is a straightforward sale of the property before loan maturity to return capital; the memorandum does not provide for a Section 721 UPREIT roll-up, and distributions and tax treatment are not guaranteed.

Analysis of LSC Fort Washington MD DST

Insights

Read this as a leveraged senior-housing income sleeve, not the bond proxy its 4.6% coupon implies: the yield is thin, but total return is underwritten to a property sale a decade out — that exit, not the master lease, is where the money is made. Current income only Meets Average, about 5% against a 5.05% benchmark, rising from 4.6% to 5.55% by year nine before an exit-year spike to 8.81%; on that back-loading it screens Above Average on peak yield (vs 6.45%) and distribution growth. The payout is earned, not borrowed: 4.6% sits well inside the ~8.5% cap-rate-equivalent NOI yield and the levered cash flow from 5.95% interest-only debt, so year-one income is covered by operations, not a return of capital. You pay up: ~11% of equity in load plus a 2.25% acquisition fee push the $21.53M interest price above stand-alone value net of debt, so the asset must appreciate just to make an investor whole. The crux is the exit cap rate: interest-only debt builds no equity during the hold, so the whole return rides on selling into a cap rate near or below the going-in and clearing the $21.2M balloon due February 2036. We'd watch occupancy and effective rents — a slip trips the 1.15x DSCR covenant and sweeps cash. What the marketing buries: the "defensive" income rests on a related-party master lease from a thinly capitalized affiliate backed by only a $250,000 sponsor demand note, and the sponsor's own realized record is four full-cycle exits averaging a 4.21-year hold at a 1.38x multiple — a short-hold pattern behind a ten-year structure with no Section 721 off-ramp. Own it if you're a 1031 exchanger needing the $212,000-per-1% debt replacement who wants passive demographic exposure and covered income and can sit illiquid to a 2036 sale. Pass if you need liquidity, want an UPREIT exit, are reaching for yield, or won't underwrite an affiliated master tenant and a double-digit load.

Advantages

- 1031 eligibility with a low entry point: the DST structure supports Section 1031 exchanges at a $100,000 minimum, backed by a 'should'-level tax opinion from Holland & Knight LLP, giving exchangers a way to defer capital gains and reinvest passively. - Need-driven, defensive asset class: an age-restricted senior / active-adult community serves a demographic projected to grow (65+ population up 9.9% within five miles) that historically shows stable demand and long tenure - here, average resident length of stay of roughly 4.03 years. - Strong in-place operations: approximately 95.3% occupancy as of June 2026 and occupancy above 91% since January 2023, within a broader D.C.-area market running about 95.6% occupancy with roughly 2.5% year-over-year rent growth. - Favorable supply backdrop: a December 2025 appraisal reported no new units under construction in the competitive submarket, and the property sits near I-495, I-295, MD-210, National Harbor, and Reagan National Airport. - Moderate, fixed-rate leverage: a 5.95% fixed, interest-only loan (about 49.6% loan-to-cost / 61.9% loan-to-value) removes near-term rate risk, is non-recourse to investors, and carries only a limited guaranty from a Sponsor principal. - Purchase below appraised value: the $34,250,000 purchase price came in under the $35,000,000 as-is appraised value. - Experienced, specialized sponsor and operator: Livingston Street Capital has assembled a 3,000+ unit active-adult / independent-living DST portfolio across 12 states, and affiliate Allure operates fifteen 55+ communities (2,411 units). - Funded reserves: capital, replacement, tax, insurance, and radon reserves are in place to help absorb capital needs and expense volatility, and any unused reserves are distributed to investors at sale.

Concerns

- Illiquidity and no control: interests are unregistered, have no public market, and must be held indefinitely; under the Trust Agreement investors have no say in operations, and transfers require Signatory Trustee (and, during defined periods, Lender) consent. - Single asset, single market: the Trust owns one property in one submarket, so there is no diversification - any deterioration in Fort Washington-area demand, senior-housing operations, or the local economy directly hits returns. - Master-lease / affiliate dependence: the Trust relies entirely on an affiliated, thinly capitalized master tenant to pay rent; a substantial part of its capital is a $250,000 demand note from the Sponsor, and default, bankruptcy, or insolvency of the master tenant could interrupt distributions and force a costly conversion to a 'springing LLC.' - Leverage and balloon risk: the loan is interest-only with no amortization, leaving a $21,200,000 balloon due February 1, 2036; the property must be sold or refinanced at then-prevailing rates, and a cash-flow decline can trigger a lender cash sweep if the 1.15x debt-service-coverage test is missed for two consecutive quarters. - Prepayment / defeasance friction: a sale before August 1, 2035 can require costly defeasance, constraining exit timing and net proceeds. - Meaningful fees and load: total offering costs equal about 11.0% of equity (including 6.0% selling commissions), plus a 2.25% acquisition fee ($770,625) and ongoing asset-management, property-management, and disposition fees paid to Sponsor affiliates regardless of investor distributions - arrangements not negotiated at arm's length. - Priced above stand-alone real estate value: the $21,530,000 interest price exceeds the property's purchase / appraised value net of debt because of loads, reserves, and fees, so investors should not view it as fair market value. - Local legal / tax overhangs: Prince George's County holds a right of first refusal on any future sale; the property is a legal but non-conforming use (Special Exception SE-4467); and a pending single-tax-parcel consolidation could trigger a reassessment and higher property taxes. - Distribution and tax uncertainty: distributions come from net cash flow per a forecast, are not guaranteed, and may be reduced to fund reserves; 1031 qualification is opinion-based with no IRS ruling; and tax-exempt investors are likely to recognize UBTI.

LSC Fort Washington MD DST Projected Distributions

Average Yield5.30%
Est. Tax-Adjusted Yield¹11.44%
Cap Rate Equivalent8.51%
Y14.60%
Y24.60%
Y34.65%
Y44.70%
Y54.75%
Y64.90%
Y75.10%
Y85.30%
Y95.55%
Y108.81%

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.

LSC Fort Washington MD DST Financing

LenderMorgan Stanley Bank, N.A.
Loan TypeFixed
Interest Rate5.95% fixed
Loan Term10 years; maturity 2/1/2036
I/O Period10 years
AmortizationN/A (interest-only)
Y1 DSCR1.80x (Year 1 forecast)

Benchmarks

Avg. Income
This deal5.30%
Market5.05%
Meets Average
Growth
This deal91.52%
Market41.07%
Above Average
Peak
This deal8.81%
Market6.45%
Above Average

Benchmarks are calculated by Baker 1031 Investments: each metric is compared against the average across current offerings of the same property type tracked by Baker 1031 as of the last-updated date shown; a figure within ±10% of that average reads “Meets Average.” Benchmark data is internal, unaudited, and subject to change. Review each offering’s PPM for complete information.

LSC Fort Washington MD DST Documents

LSC Fort Washington MD DST — Complete Offering Data

Offering & Structure
Investment NameLSC Fort Washington MD DST
SponsorLivingston Street Capital
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusAvailable
Last Updated2026-08-10
Size & Availability
Total Offering$42,730,000
Equity$21,530,000
Debt$21,200,000
Available Equity$11,734,187 (54.5% of equity)
Minimum Investment$100,000
Total Load19.20%
Initial Reserves1.81%
Property
Property TypeSenior Living
StrategyCore
LocationMD
Market TierTier 1
Income & Projections
Average Yield5.30%
Projected Yields (Y1–Y10)Y1 4.60% · Y2 4.60% · Y3 4.65% · Y4 4.70% · Y5 4.75% · Y6 4.90% · Y7 5.10% · Y8 5.30% · Y9 5.55% · Y10 8.81%
Tax-Adjusted Yield11.44%
Cap Rate Equivalent8.51%
Financing
In-Place LTV49.60% LTV
LenderMorgan Stanley Bank, N.A.
Loan TypeFixed
Interest Rate5.95% fixed
Loan Term10 years; maturity 2/1/2036
I/O Period10 years
AmortizationN/A (interest-only)
Y1 DSCR1.80x (Year 1 forecast)
Exit
Estimated Hold Period10 years
721 Exchange ExitNone
Benchmarks (vs sector median)
Avg. Income5.30% vs 5.05% market — Meets Average
Growth91.52% vs 41.07% market — Above Average
Peak8.81% vs 6.45% market — Above Average

Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.