NexPoint Small Bay Industrial III DST
Investment Description
The parent DST owns two multi-tenant small-bay portfolios: a 407,669-sf, 136-unit property in Richardson, TX that was 92% leased, and a 102,245-sf, 41-unit property in Deerfield Beach, FL that was 95% leased. The properties total 509,914 sf and are cross-collateralized by a $41.0 million Argentic loan. NexPoint affiliates master-lease each property; the program identifies sponsor demand notes as the initial capitalization of the Master Tenants. An exchange entity may require a 721 transaction after one year, while holders can elect cash.
Projected Cash Flow
Highlights
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 notesThis is a multi-tenant, management-intensive industrial strategy rather than a traditional single-tenant net-lease DST. Vacancy, rollover, localized small-bay rents and tenant improvements govern cash flow, while the Deerfield asset also faces hurricane exposure. Leverage is moderate at 44.9% LTV and debt is fixed and interest-only, but maturity risk remains at year ten. The sponsor paid $41.7 million for Arapaho after its affiliate bought it for $40.05 million earlier in 2025, creating related-party basis scrutiny. The 12.20% total load includes the $1.434 million sponsor facilitation fee.