LSC-Salt Lake UT, DST Overview
LSC-Salt Lake UT, DST is a Regulation D private placement offering up to $12,970,000 of beneficial interests -- representing 100% of the Trust -- to accredited investors, structured specifically to accommodate Section 1031 tax-deferred exchanges. The Trust, a newly formed Delaware statutory trust sponsored by Livingston Street Capital, owns a fee-simple interest in a four-story, 94-unit multifamily community located at 680 East 100 South in Salt Lake City, Utah. Built in 1987 and operated as an active-adult / independent-living community historically known as Park Lane Senior Living, the property sits on approximately 1.361 acres roughly 1.5 miles east of downtown Salt Lake City, with convenient access to I-15 and I-80, the University of Utah Hospital, and Salt Lake City International Airport. The unit mix is 81 one-bedroom and 13 two-bedroom apartments averaging 712 square feet, complemented by amenities including an atrium, cafeteria, lounge, fitness center, and on-site laundry. The Property was acquired on December 2, 2025 for a purchase price of $21,800,000 and was 98.9% occupied as of January 1, 2026, having exceeded 95% occupancy for nine consecutive months. The Trust leases the entire property to an affiliated Master Tenant (Multi19 LeaseCo, LLC) under a master lease running through December 31, 2035, with Stellar Park Lane Management, LLC serving as property manager and a Livingston Street affiliate serving as asset manager. Financing consists of a $13,500,000 interest-only, non-recourse first mortgage from Natixis Real Estate Capital LLC at a fixed 6.04% rate maturing December 6, 2035, producing a loan-to-value of roughly 51.0% of total offering funds ($26,470,000). The business plan centers on continued interior renovations, disciplined rent growth, and preservation of investor capital over a hold aligned to the loan and master-lease term. The offering suits accredited 1031 exchangers seeking passive, professionally managed senior-oriented multifamily exposure in a supply-constrained Salt Lake City submarket who can accept illiquidity, leverage, and reliance on the Sponsor and its affiliates.
Highlights
The property sits in one of the strongest large-metro economies in the United States. Salt Lake City was recently ranked #3 among large U.S. metros in the Milken Institute Best-Performing Cities Index, and Utah has been ranked the #1 state on several economic metrics. The location -- roughly 1.5 miles east of downtown Salt Lake City, near the I-15 and I-80 corridors -- offers residents direct access to the University of Utah Hospital (about 2.2 miles), major retail and dining, and Salt Lake City International Airport (about 7.6 miles, with more than 330 daily flights). Demographics reinforce the senior-housing thesis: according to ESRI, the population aged 55 and older within a five-mile radius is projected to grow 10.2% over the next five years (from 50,401 to 55,518) and to comprise 21.8% of the area's population by 2030. Average household income within that radius is approximately $122,481 and the average home value is about $693,698, supporting resident affordability. The appraisal characterizes the local senior submarket as undersupplied, with limited proposed competitive product.
The asset is a four-story, 94-unit active-adult and independent-living community built in 1987 on approximately 1.361 acres and zoned RMF-45 (moderate/high-density multifamily residential). Its unit mix is 81 one-bedroom/one-bath apartments (averaging 685 square feet at roughly $4,074 average in-place monthly rent) and 13 two-bedroom/one-bath apartments (averaging 883 square feet at roughly $5,492), for a blended average of 712 square feet and about $4,257 per unit per month. Community amenities include an atrium, cafeteria, lounge, fitness center, and on-site laundry rooms geared toward an older-adult resident base. Operating fundamentals are strong: the property was 98.9% occupied as of January 1, 2026 and has exceeded 95% occupancy for nine consecutive months, while the property manager implemented a 4.4% increase in market rents and a 4.8% increase in in-place rents effective January 1, 2026. A reported 2.1% loss-to-lease points to additional embedded rent upside. Prior ownership invested approximately $1.89 million in capital improvements since 2021, renovating 63 of the 94 units, and the Trust intends to complete renovations of the remaining units.
The Property is capitalized with a single first-mortgage loan of $13,500,000 from Natixis Real Estate Capital LLC, carrying a fixed interest rate of 6.04% per annum and maturing December 6, 2035. The loan is interest-only for its entire term -- with monthly interest payments ranging from roughly $63,420 to $70,215 -- and has no scheduled principal amortization, leaving a $13,500,000 balloon due at maturity. Leverage is moderate for a DST: approximately 51.0% loan-to-value based on the $26,470,000 of total offering funds, or about 61.9% based on the $21,800,000 purchase price. The loan is non-recourse to the Trust and Investors, with only a limited bad-boy and environmental guaranty provided by Pietro V. Scola, a principal of the Sponsor. Each 1.0% interest is allocated $129,700 of the loan, which can help exchangers replace debt carried on their relinquished property. The Trust also funded meaningful reserves at closing -- including a $500,000 capital reserve, a $460,345 replacement reserve, $133,875 for immediate repairs, a $31,188 environmental (radon) reserve, and $65,638 for taxes and insurance -- with escalating capital-reserve deposits programmed from years four through seven.
The offering is sponsored by Livingston Street Capital, a real-estate investment firm headquartered in Radnor, Pennsylvania that specializes in DST programs and active-adult / independent-living residential communities. The Sponsor and its affiliates fill the key roles: Livingston Street Multi19 Asset Management, LLC serves as asset manager, an affiliated entity (Multi19 LeaseCo, LLC) serves as master tenant, and Livingston Street Multi19 Services, LLC acts as signatory trustee, with Sorensen Entity Services, LLC as Delaware trustee and Chris Sorensen as independent trustee. Day-to-day operations are handled by Stellar Park Lane Management, LLC -- the operator that already managed the property for the seller -- a regional seniors-housing platform reported to run 41 communities totaling roughly 5,965 units across Arizona, Colorado, Idaho, Montana, New Mexico, Texas, Utah, and Washington. The Sponsor's affiliated DST portfolio comprises approximately 2,261 residential units across numerous markets in Texas, New York, Illinois, Oregon, Washington, Nevada, Maryland, Pennsylvania, Florida, and Colorado, and the Sponsor may later engage its affiliate Allure Active Adult Communities, LLC to operate the asset. Orchard Securities, LLC is the managing broker-dealer for the offering.
The Trust is structured to qualify as replacement property for investors completing a Section 1031 tax-deferred exchange, allowing them to defer capital-gains and depreciation-recapture taxes while acquiring a fractional beneficial interest treated for tax purposes as direct ownership of real estate. Special Tax Counsel has provided a tax opinion stating that an investor's acquisition of an Interest 'should' be treated as a direct acquisition of an interest in the Property for purposes of Section 1031, although no ruling has been or will be obtained from the IRS. The minimum investment is $100,000 for exchange investors and $50,000 for cash investors, and each 1.0% interest carries an allocated $129,700 of mortgage debt to help satisfy an exchanger's debt-replacement requirement. Investors receive their pro-rata share of net cash flow generated under the master lease, and any appreciation is realized upon an eventual sale of the Property. The debt structure permits defeasance on or after December 2, 2028 and prepayment without penalty after September 6, 2035, positioning a potential disposition around the loan's December 2035 maturity. Notably, the PPM does not describe a Section 721/UPREIT roll-up exit option; the anticipated exit is a straightforward sale of the asset.
Analysis of LSC-Salt Lake UT, DST
Insights
Stripped of its 1031 packaging, LSC-Salt Lake UT is a moderately levered bet on the durability of high-rent senior-housing cash flow in one of the country's strongest metro economies -- income-oriented in character, but closer to an operating business wearing a real-estate wrapper than to a passive net-lease bond-proxy. The relative-value read is reasonable rather than cheap: the ~5.3% average distribution merely meets the senior-living benchmark (about 5.05%), while the yield building to 7.31% by year ten and the growth profile both screen above average, so exchangers pay a market entry price for above-market back-end. Two things temper that. First, the all-in load is heavy -- roughly 15% total, of which about 11.5% is selling and offering expense -- so a real slice of every dollar funds fees and reserves before the asset performs, and the property must grow NOI and appreciate simply to return full 1031 basis. Second, distributions start modestly at 4.7%; the PPM discloses no explicit Year-1 payout ratio, but a 4.7% payout sitting well inside the ~8.6% cap-rate-equivalent suggests early income is covered by property cash flow rather than financed out of reserves. The outcome hinges on one nexus: sustained occupancy and rent at rich per-unit levels ($4,074-$5,492 per month) flowing through an affiliated, thinly capitalized Master Tenant (Multi19 LeaseCo, backed largely by a $250,000 sponsor demand note). The 98.9% occupancy, nine months above 95%, and 2.1% loss-to-lease are genuine support, but any softening in senior affordability or health passes straight through that affiliate to distributions -- watch occupancy against the Exhibit E forecast and the 1.20x DSCR cash-sweep trigger. The secondary variable is the exit: the loan is interest-only, so none of the 51% leverage amortizes, leaving a full $13.5M bullet at December 2035 -- the entire equity return rides on the value and cap rate achievable near maturity, with defeasance cost on any earlier sale. Two points the marketing won't foreground: the sponsor's realized record -- four full-cycle deals at roughly 1.38x equity and 8.5% annually -- was earned on ~4-year holds, a materially shorter duration than the ~10-year hold this deal underwrites; and versus net-lease or diversified DSTs, buyers here trade fee efficiency and tenant diversification for real organic rent growth and a tangible hard-asset story. Net: appropriate for a 1031 investor who wants passive, professionally managed, moderately levered senior-multifamily exposure in a supply-constrained Utah submarket and can live with single-asset concentration, an affiliated master tenant, a heavy load, an interest-only balloon, and a 'should'-level tax opinion. Investors needing diversification, contractually certain current income, near-term liquidity, or fee-light net-lease exposure should pass.
Advantages
- Turnkey Section 1031 replacement property: 100% of the Trust is offered to accredited exchangers, with a tax opinion supporting Section 1031 treatment and $129,700 of allocated debt per 1.0% interest to help replace relinquished-property leverage.
- Stabilized occupancy: the community was 98.9% occupied as of January 1, 2026 and has held above 95% for nine consecutive months, reducing lease-up risk at acquisition.
- Demonstrated rent momentum with embedded upside: market rents rose 4.4% and in-place rents 4.8% effective January 1, 2026, and a 2.1% loss-to-lease suggests room to push rents further as units renovate.
- Favorable, supply-constrained market: Salt Lake City ranks #3 among large U.S. metros (Milken Institute), the five-mile 55+ population is projected to grow 10.2% over five years, and the appraiser views the senior submarket as undersupplied.
- Moderate, fixed-rate, non-recourse leverage: a 6.04% fixed-rate, interest-only loan at roughly 51% LTV insulates cash flow from near-term rate volatility, and investors bear no personal loan liability.
- Passive, professionally managed structure: an experienced regional seniors-housing operator (Stellar Park Lane) already runs the asset and a Sponsor affiliate provides asset management under a master-lease structure, so investors have no landlord duties.
- Capital already invested and reserved: prior ownership spent about $1.89 million upgrading 63 of 94 units, and the Trust funded substantial replacement, operating, and immediate-repair reserves at closing.
- Meaningful sponsor experience in the active-adult/DST niche, with roughly 2,261 affiliated units across multiple states and an aligned property-level operator already in place.
Concerns
- Illiquidity: no public market exists or is expected for the Interests; investors must be prepared to hold for an indefinite period and can lose their entire principal.
- No control: investors cannot manage the Trust or the Property, cannot remove the Master Tenant or the managers, and depend entirely on the Sponsor and its affiliates.
- Single-asset concentration: the Trust owns one 1987-vintage senior/independent-living building in one Salt Lake City submarket, providing no diversification by property, tenant type, or geography.
- Reliance on an affiliated, thinly capitalized Master Tenant: Multi19 LeaseCo, LLC is a Sponsor affiliate whose capital is largely a $250,000 demand note from the Sponsor; a Master Tenant default, bankruptcy, or insolvency would directly impair distributions, and there is no assurance the Sponsor can fund the note.
- Leverage and balloon/refinance risk: the loan is interest-only with no amortization, leaving a $13,500,000 balloon at December 2035 maturity; a sale before September 6, 2035 can trigger costly defeasance, and a cash-management sweep applies if debt-service coverage falls below 1.20x.
- Fees and load: Selling and Offering Expenses total about $1,486,705 (roughly 11.5% of the offering), and substantial acquisition, asset-management, and disposition fees are paid to the Sponsor and affiliates regardless of investor returns, under arrangements not negotiated at arm's length.
- Bridge-loan overhang: the Depositor's contribution was funded by a Sponsor bridge loan; if interests are not fully sold by early 2027, unsold interests may be marketed and even sold below the minimum price, and unrelated defaults on the Sponsor's bridge facilities could indirectly harm the Property.
- Occupancy, concession, and market risk: maintaining occupancy may require material rent concessions, and higher inflation, higher interest rates, or recession could pressure senior residents' health and finances.
- Tax uncertainty and conflicts: the Section 1031 opinion is only a 'should' opinion with no IRS ruling, and conflicts of interest are pervasive among the Sponsor, Master Tenant, Asset Manager, and their affiliates.
LSC-Salt Lake UT, DST — Complete Offering Data
Offering & Structure
Investment NameLSC-Salt Lake UT, DST
SponsorLivingston Street Capital
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusClosed
Last Updated2026-07-21
Size & Availability
Total Offering$26,470,000
Equity$12,970,000
Debt$13,500,000
Available Equity$0 (0% of equity)
Minimum Investment$100,000
Total Load15.24%
Initial Reserves1.89%
Property
Property TypeSenior Living
StrategyCore-Plus
LocationUT
Market TierTier 2
Income & Projections
Average Yield5.30%
Projected Yields (Y1–Y10)Y1 4.70% · Y2 4.70% · Y3 4.75% · Y4 4.75% · Y5 4.80% · Y6 4.90% · Y7 5.30% · Y8 5.65% · Y9 6.10% · Y10 7.31%
Tax-Adjusted Yield11.54%
Cap Rate Equivalent8.60%
Financing
In-Place LTV51.00% LTV
LenderNatixis Real Estate Capital LLC
Loan TypeFixed
Interest Rate6.04% (Fixed)
Loan Term10 years
I/O Period10 years
AmortizationN/A (interest-only)
Y1 DSCR1.81x
Exit
Estimated Hold Period10 years
721 Exchange ExitNone
Benchmarks (vs sector median)
Avg. Income5.30% vs 5.05% market — Meets Average
Growth55.53% vs 41.07% market — Above Average
Peak7.31% 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.
