Overview
A 94-unit senior-living / active-adult multifamily community known as Park Lane Senior Living at 680 East 100 South, Salt Lake City, Utah, built in 1987 on approximately 1.361 acres across seven parcels, comprising a single four-story apartment building with 61 parking spaces (eight ADA) and amenities including a large atrium, cafeteria, lounge, fitness center, and laundry rooms. Prior ownership invested $1.89 million in capital repairs. The Property was 98.9% occupied as of January 1, 2026 (above 95% for nine consecutive months) with a 2.1% loss-to-lease, in an affluent infill submarket (five-mile household income of $122,481 and home value of $693,698, with 4,661 age-qualified 75+ households in the primary market area). The Trust acquired the Property in fee simple on December 2, 2025 for $21,800,000. Capitalization is $12,970,000 of equity plus a $13,500,000 Natixis Real Estate Capital loan at a fixed 6.04%, interest-only for the full 10-year term, maturing December 6, 2035, representing a 51.0% loan-to-value on total funds (61.9% of purchase price), with no amortization during the term and defeasance friction on early payoff. The Property is leased 100% to an affiliated Master Tenant (Livingston Street Multi19 LeaseCo) under a master lease in which Base Rent covers debt service while Additional Rent and Bonus Rent fund investor distributions, and the Master Tenant pays property operating and uncontrollable expenses up to projected amounts. As a service-intensive senior-living operation, the asset generates Effective Gross Income of approximately $4.6 million against NOI of approximately $1.5 million (a roughly 32% margin). Distributions are forecast to ramp from 4.70% to 6.10% by Year 9 (Year 10 shows 7.31% inclusive of a reserve release), averaging 5.30%. Sponsored by Livingston Street Capital, a boutique commercial real estate private equity firm in Radnor, Pennsylvania that has acquired 18 active-adult and senior properties totaling over 2,800 units across 12 states, with a senior leadership team holding over 75 years of collective experience; the Managing Broker-Dealer is Orchard Securities, LLC. The exit is anticipated as a sale before the December 2035 loan maturity.
Highlights
The asset serves the demographically favored senior-living segment, targeting the 75+ cohort (with 4,661 age-qualified households in the primary market area) in an affluent Salt Lake City submarket where five-mile household income is $122,481 and home values average $693,698, supporting private-pay demand and pricing power. The independent-living format with dining and services tends to produce long resident tenure and durable occupancy.
The Property entered the offering effectively stabilized, at 98.9% occupied and above 95% for nine consecutive months, demonstrating consistent operations on a 1987-vintage asset that prior ownership supported with $1.89 million of capital repairs. The qualifier is that the loss-to-lease is only 2.1%, so embedded mark-to-market rent upside is modest relative to a deeper below-market rent roll.
The Trust owns the Property in fee simple, a cleaner ownership posture than ground-leasehold structures, and financed it with a fixed 6.04% Natixis loan that is interest-only for the full 10-year term, locking the cost of debt and supporting a 1.81x Year 1 coverage. The offsets are a relatively high coupon, meaningful leverage (51.0% of total capitalization, 61.9% of purchase price), a full-term interest-only balloon at the December 2035 maturity, and defeasance friction on early exit.
The location is an affluent infill site in Salt Lake City, a growing intermountain metropolitan market with strong demographics and a supportive private-pay senior base. The constraints are physical: a small 1.361-acre, seven-parcel site, a single older (1987) four-story building, and a low parking ratio of roughly 0.65 spaces per unit, which limit expansion and could affect marketability to certain operators or buyers.
The sponsor is a focused niche operator: Livingston Street Capital has acquired 18 active-adult and senior residential properties totaling over 2,800 units across 12 states, with senior leadership holding more than 75 years of collective experience, providing relevant operating depth in the segment. The offset is that the Property is operated under a master lease through a newly formed, thinly capitalized Sponsor affiliate, concentrating operational and credit dependency within the sponsor family.
Analysis
Insights
LSC-Salt Lake is a moderately leveraged, core-plus senior / independent-living multifamily DST whose return blends a modest, occupancy- and rent-growth-driven current yield (4.70% rising to 6.10%, approximately 5.30% average including a reserve-inflated terminal year) with terminal value, on a single stabilized 1987-vintage senior-living community in an affluent Salt Lake City submarket operated through an affiliated master lease. Distinct from passive net-lease DSTs, the asset is an operating senior-living business: roughly $4.6 million of Effective Gross Income yields only about $1.5 million of NOI (a roughly 32% margin), so returns are sensitive to wage, food, and utility inflation and to occupancy and operator execution. It is closest in profile to the sponsor's own Latham deal and the ledger's leveraged multifamily holdings, but is distinguished by a more service-intensive independent-living model, a smaller and older asset, fee-simple ownership (versus the ground-leasehold seen in some peers), a slightly lower coupon and average yield, and limited 2.1% loss-to-lease upside. On a risk-adjusted basis the deal pairs a demographically supported niche, affluent private-pay demographics, and a focused sponsor against single-asset and single-market concentration, operating-margin and operator-credit risk through a thinly capitalized affiliate, a 2035 interest-only balloon with defeasance friction, and a terminal-year distribution flattered by a reserve release. Macro fit is supportive given senior-housing demand and fixed-rate debt, but the dominant sensitivities are operating-margin durability, occupancy, the 2035 refinancing or sale and defeasance economics, and the exit pricing in a secondary market. Current distributions near 4.70% are supported by stabilized in-place NOI, but the ramp and terminal value carry the bulk of the return, and there is no 721 exit, the realization being a sale before 2035.
Advantages
The offering provides debt-advantaged exposure to a demographically tailwinded senior-living community in an affluent Salt Lake City submarket with strong private-pay demographics, entered effectively stabilized at 98.9% occupancy following $1.89 million of recent capital investment. The Trust owns the asset in fee simple and financed it with a fixed 6.04% interest-only loan that locks the cost of debt and supports a 1.81x Year 1 coverage. Distributions are forecast to ramp from 4.70% to 6.10% through Year 9 (5.30% average inclusive of a reserve-enhanced terminal year), and the deal is led by a focused boutique sponsor with a multi-property senior-housing track record across 12 states and experienced senior leadership.
Concerns
The asset is a service-intensive senior-living operation rather than passive real estate: Effective Gross Income of roughly $4.6 million produces NOI of only about $1.5 million (a roughly 32% margin), so returns are sensitive to wage, food, and utility inflation, operator execution, and occupancy in a way a net-lease asset is not. The Trust is a single asset in a single, smaller market (Salt Lake City), in a small (94-unit) and older (1987-vintage) building on a constrained 1.361-acre, seven-parcel site with a low 0.65 parking-space-per-unit ratio, and embedded rent upside is limited by a 2.1% loss-to-lease. The Property is operated under a master lease through an affiliated, newly formed and thinly capitalized Master Tenant, so investor distributions depend on operator performance and a tiered rent waterfall, and the Trust bears uncontrollable-expense overages above projected amounts. The coupon is relatively high at 6.04% with meaningful leverage (51.0% of total capitalization, 61.9% of purchase price), the loan is interest-only for the full term so the entire $13,500,000 balloons at the December 2035 maturity, and early exit requires defeasance. The distribution ramp from 4.70% to 6.10% depends on operational rent and occupancy growth rather than contractual income, the Year 10 figure of 7.31% is inflated by a reserve release and partial-period effect, and the going-in cash yield is modest at 4.70% as operating expenses and debt service absorb cash flow. The upfront load is high at 15.24% of equity (an 11.46% selling and offering block plus a 3.78% acquisition fee) before a disposition fee and bridge financing costs, in a less-liquid secondary market.
