LSC-Latham NY, DST Overview
LSC-Latham NY, DST is a Regulation D, Rule 506(b) private placement sponsored by an affiliate of Livingston Street Capital, offering up to $17,310,000 of beneficial interests representing 100% of the ownership of a newly formed Delaware statutory trust. The Trust owns a fee-simple interest in Hearthstone Village, a 144-unit garden-style multifamily community marketed to active-adult and independent-living residents, located at 4000 Florence Drive in Latham (Town of Colonie), Albany County, New York 12110. Built in 2006 on a 14.776-acre parcel, the property comprises approximately 133,782 leasable square feet across three-story residential buildings, with 174 parking spaces (14 ADA) and community amenities including a clubhouse, kitchen, salon, billiards room, lounge and an outdoor swimming pool. The unit mix is 36 one-bedroom, 72 two-bedroom/one-bath and 36 two-bedroom/two-bath apartments, averaging 929 square feet and an in-place rent of roughly $2,152 per month. The Trust acquired the property on August 15, 2025 for a purchase price of $30,125,000, capitalized with $17,310,000 of investor equity and a $19,500,000 fixed-rate, interest-only first mortgage. Consistent with the DST structure, the property is 100% net-leased to a Sponsor-affiliated Master Tenant under a ten-year master lease, the Trust is passively managed by a Sponsor-affiliated Asset Manager, and day-to-day operations are handled by a third-party property manager. Because a DST interest is treated for federal income tax purposes as a direct interest in real property, the Offering is designed for accredited investors completing a Section 1031 tax-deferred exchange (minimum $100,000) as well as cash investors (minimum $50,000) who seek passive, income-oriented real estate exposure in the Greater Albany, New York market and who have no need for liquidity.
Highlights
The property is located in Latham, within the Town of Colonie in Albany County, part of the Greater Albany, Schenectady-Troy Metropolitan Statistical Area of upstate New York. The site sits near three major thoroughfares - US Route 9, Interstate 87 and Interstate 787 - providing convenient access to regional employment, retailers, restaurants and services, including Samaritan Hospital's Albany Memorial Campus approximately 5.2 miles south and the Albany-Rensselaer Amtrak station roughly 9.2 miles south, which offers rail service to New York City, Boston and Montreal. According to data cited in the PPM, the cost of living in the Albany area is approximately 20% lower than in New York City, and the appraiser characterizes the immediate submarket as relatively undersupplied with a favorable demand outlook, supported by a stable, government- and education-anchored regional economy and a metro unemployment rate in the low single digits.
Hearthstone Village is a 2006-vintage, 144-unit multifamily community set on 14.776 acres, offering roughly 133,782 leasable square feet across three-story buildings and 174 parking spaces (14 ADA). The community caters to active-adult and independent-living residents and features amenities including a clubhouse, kitchen, salon, billiards room, lounge and an outdoor swimming pool, along with patio and deck areas. The unit mix is balanced across 36 one-bedroom/one-bath homes (averaging 739 square feet), 72 two-bedroom/one-bath homes (948 square feet) and 36 two-bedroom/two-bath homes (1,082 square feet), with an overall average of 929 square feet and an average in-place rent of approximately $2,152 per month per the August 15, 2025 rent roll. Occupancy at the subject was reported near 91%, in line with a competitive set of comparable communities operating in the low-to-high 90s, positioning the asset as neither the newest nor the oldest property in its market with a quality and amenity package the appraiser describes as in line with the submarket.
The Trust financed the acquisition with a single first-mortgage loan of $19,500,000, representing a loan-to-value ratio of approximately 53.0% based on total capitalization of $36,810,000 (or roughly 64.7% of the $30,125,000 purchase price). The loan carries a fixed interest rate of 6.175% per annum and is interest-only for its entire term with no principal amortization; monthly payments range from approximately $93,654 to $103,689 depending on the number of days in the month. The loan matures September 6, 2035, with a balloon payment of $19,500,000 due at maturity. The fixed rate removes interest-rate reset risk during the hold and the interest-only structure supports current cash flow, while the loan requires a minimum 1.15x debt service coverage ratio (tested quarterly after May 2026) and imposes cash-management provisions and defeasance restrictions on any sale prior to May 6, 2035. Exchange investors are allocated a pro-rata share of the debt equal to $189,000 per 1.0% interest, which can help satisfy the replacement-debt requirement of a Section 1031 exchange.
The Offering is sponsored by an affiliate of Livingston Street Capital, a Radnor, Pennsylvania-based real estate firm that has originated multiple DST programs focused on multifamily, active-adult and independent-living residential assets. Asset management is provided by a Sponsor affiliate, Livingston Street Multi18 Asset Management, LLC, while property-level operations are handled by United Plus Property Management, LLC, the New York manager that operated the property for the seller and reportedly manages 48 properties and more than 5,000 units on the East Coast, earning industry recognition including a 'Best 55+ Lifestyle Program' award in 2024. Following the current management term, operations may transition to Allure Active Adult Communities, LLC, another Sponsor affiliate that specializes in 55+ active-adult operations and reportedly manages approximately 2,261 residential units across the Sponsor's affiliated DST properties in numerous markets. This vertically integrated platform gives the Sponsor direct operating experience in the active-adult niche, though investors should note these affiliations also create the conflicts of interest disclosed throughout the PPM.
The Offering is structured as a Delaware statutory trust specifically to accommodate Section 1031 tax-deferred exchanges. The Trust has obtained a tax opinion from special tax counsel concluding that an investor's acquisition of an interest 'should' be treated as a direct acquisition of an interest in the underlying real property for purposes of Section 1031, allowing exchangers to defer capital gains from the sale of relinquished property. No IRS ruling has been obtained, and the opinion is limited to Section 1031 treatment. Investors receive their pro-rata share of trust income as regular distributions and are allocated a pro-rata portion of the mortgage debt ($189,000 per 1.0% interest), which helps satisfy the exchange's equal-or-greater debt requirement. The minimum investment is $100,000 for exchange investors and $50,000 for cash investors. Prospective investors should note this DST does not disclose a Section 721 UPREIT roll-up exit; the anticipated exit is a sale of the property, generally aligned with the loan's 2035 maturity, at which point investors may seek to complete a subsequent 1031 exchange to continue deferral.
Analysis of LSC-Latham NY, DST
Insights
Treat LSC-Latham NY, DST as what it is in a portfolio: a levered, single-asset operating bet on active-adult apartments in one upstate market, not the bond-substitute its steady coupon implies - the distribution is manufactured by a Sponsor-affiliated Master Tenant's performance, not backstopped by outside credit. On the marketplace's screens it flatters: average income near 5.63%, peak yield, and growth all read Above Average against senior-living peers near 5.05% income and a 6.45% peak. Read those flags skeptically, because they hang on one number - a Year-10 print of 9.31%. Cash income opens thin at 4.7% and climbs only slowly (4.75% through Year 3, 5% by Year 5), so the 'average' is a decade-long IOU on rent step-ups landing as underwritten. Year-1 coverage isn't disclosed and the PPM concedes distributions may draw on reserves, so early income is partly return of capital, not yield. The 14.98% load - fifteen cents on the dollar - is heavy, and buys logistics, not alpha: pre-arranged fixed-rate debt, passivity, deadline certainty. The crux is that Master Tenant, capitalized as little more than a $250,000 demand note; the Trust relies on it entirely for rent, so there is scant cushion if the active-adult thesis underdelivers, and the 1.15x DSCR covenant (tested quarterly after May 2026) can trap cash and halt distributions - watch achieved rents and occupancy against the ~$2,152/~91% underwriting and any reserve draw. What the marketing buries: the Sponsor's four full-cycle deals returned ~8.5% a year at a ~1.38x equity multiple over an average hold of just ~4.2 years, yet this asks a ten-year hold - more than double anything the operator has round-tripped - on a fixed 6.175% interest-only loan that never amortizes into a $19.5M balloon at September 2035, with no 721/UPREIT off-ramp; the exit rides on Albany cap rates a decade out. Own it if you must place exchange equity and replacement debt on a deadline, prize income over control, and can sit still through ~2035; pass if you need covered day-one income, real diversification, or a defined roll-up exit - none of which is here.
Advantages
The Trust offers accredited 1031-exchange investors a fully structured, passive replacement property with pre-arranged financing, allowing an exchanger to close within tight identification and closing deadlines without negotiating debt or management. The property is a stabilized, income-producing 2006-vintage multifamily community in the Greater Albany MSA, an upstate New York market the appraiser describes as relatively undersupplied with favorable demand fundamentals and a cost of living roughly 20% below New York City. The unit mix is diversified across one- and two-bedroom floor plans with reported occupancy near 91%, and the community's active-adult and independent-living orientation targets a demographic with durable demand. Financing is a fixed-rate 6.175% first mortgage that is interest-only for its full term, eliminating rate-reset risk during the hold and supporting current distributions, with moderate leverage of roughly 53% of total capitalization. The Master Tenant is obligated to pay real estate taxes, utilities and insurance up to projected amounts, absorbing a degree of expense volatility. The Sponsor is vertically integrated through affiliated asset-management and active-adult operating platforms (Allure), and the property is run by an award-winning third-party manager already familiar with the asset. The DST structure provides Section 1031 tax deferral supported by a tax opinion, allocates replacement debt to help satisfy exchange requirements, and offers a relatively low minimum ($100,000 for exchangers) for investors seeking passive, income-oriented real estate exposure.
Concerns
An investment in the Interests is speculative, illiquid and involves a high degree of risk, including possible loss of principal. There is no public market for the Interests, transfer is restricted, and investors must be prepared to hold for an indefinite period. Under the DST structure investors have no control or voting rights over the Trust or the property and cannot remove the Sponsor or managers. The Trust relies entirely on a Sponsor-affiliated Master Tenant to pay rent, and that Master Tenant has minimal capitalization - largely a $250,000 demand note from the Sponsor - so a default, bankruptcy or insolvency of the Master Tenant could severely impair distributions. This is a single, non-diversified asset dependent on one submarket and one property type; occupancy was reported near 91%, and rent concessions or vacancy spikes would directly reduce cash flow. The property is highly leveraged with an interest-only loan that requires no amortization, leaving a $19,500,000 balloon due at the September 2035 maturity and creating refinancing or sale risk; failure to maintain the 1.15x debt service coverage ratio triggers a cash-management period that can trap cash and suspend distributions, and an early sale before May 6, 2035 could incur defeasance costs. Substantial fees and a meaningful sales load - including selling commissions up to 6.0%, a managing broker-dealer fee, wholesaling, marketing and due-diligence allowances, plus a 2.25% acquisition fee and ongoing asset-management and disposition fees - are paid to the Sponsor and affiliates regardless of investor returns and were not negotiated at arm's length, creating conflicts of interest. There is also bridge-loan risk tied to the Depositor, and Section 1031 tax treatment relies on an opinion, not an IRS ruling, and could be challenged. Distributions are not guaranteed and may be supported in part by reserves.
LSC-Latham NY, DST — Complete Offering Data
Offering & Structure
Investment NameLSC-Latham NY, DST
SponsorLivingston Street Capital
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusClosed
Last Updated2026-07-21
Size & Availability
Total Offering$36,810,000
Equity$17,310,000
Debt$19,500,000
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load14.98%
Initial Reserves1.87%
Property
Property TypeSenior Living
StrategyCore-Plus
LocationNY
Market TierTier 2
Income & Projections
Average Yield5.63%
Projected Yields (Y1–Y10)Y1 4.70% · Y2 4.70% · Y3 4.75% · Y4 4.75% · Y5 5.00% · Y6 5.25% · Y7 5.60% · Y8 5.95% · Y9 6.30% · Y10 9.31%
Tax-Adjusted Yield11.54%
Cap Rate Equivalent8.65%
Financing
In-Place LTV52.97% LTV
LenderBank of Montreal (Chicago Branch)
Loan TypeFixed
Interest Rate6.175% (Fixed)
Loan Term10 years
I/O Period10 years
AmortizationN/A (interest-only)
Y1 DSCR1.71x
Exit
Estimated Hold Period10 years
721 Exchange ExitNone
Benchmarks (vs sector median)
Avg. Income5.63% vs 5.05% market — Above Average
Growth98.09% vs 41.07% market — Above Average
Peak9.31% 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.
