Olympus Tradewinds DST Overview
Olympus Tradewinds DST is a Regulation D, Rule 506(c) private placement offering up to $21,107,000 of Class A beneficial interests (21,107 interests at $1,000 each) in a Delaware statutory trust sponsored by Olympus Property. The trust owns a single, stabilized asset: Tradewinds Apartments, a 214-unit, Class A garden-style multifamily community located at 1808 S. Tradewinds Boulevard in Midland, Texas. The property was built in 2013 and spans approximately 192,882 rentable square feet across ten three-story buildings on about 10.35 acres, offering one-, two-, and three-bedroom floorplans that average 901 square feet. The trust acquired the property for $34,250,000 and capitalized it with a $19,021,000 Fannie Mae DUS loan from Berkadia Commercial Mortgage. The business plan is a straightforward income-and-hold strategy: the property is master-leased to an Olympus affiliate and managed by Olympus Property, with the trust targeting distributions beginning at 6.00% and rising to 6.60% of invested equity over an anticipated seven-year hold before a sale. Midland sits at the center of the Permian Basin, described in the memorandum as the most prolific oil and gas producing region in North America, which supports a high-income renter base. As a DST, the structure is purpose-built for accredited investors completing a Section 1031 exchange who want passive, fractional ownership of institutional real estate without day-to-day management responsibility, and who can accept illiquidity and reliance on the sponsor. Minimum investment is $250,000 for 1031 exchange investors and $25,000 for cash investors, subject to the trust's discretion.
Highlights
The offering is anchored to Midland, Texas, the economic hub of the Permian Basin, which the memorandum describes as the most prolific oil and gas producing region in North America, responsible for roughly 47% of U.S. oil output. Midland's metro recorded a 2023 per-capita personal income of $144,532, more than double the U.S. metropolitan average, alongside median household income of about $91,169 and unemployment near 3.0%. Major energy employers including Chevron, ExxonMobil, ConocoPhillips and Occidental Petroleum operate within roughly two to seven miles of the property, supporting a stable, high-income pool of renters. With a median home listing price near $406,250, the memorandum notes a meaningful affordability gap versus multifamily rents that reinforces demand for quality rental housing, positioning the stabilized asset to draw on durable local wage growth.
Tradewinds Apartments is a Class A, 2013-vintage community that, according to the memorandum, has historically maintained occupancy in the mid-90% range and was approximately 90.65% occupied as of September 2025. The 214 units feature granite countertops, modern black appliance suites, kitchen islands with bar seating, dark wood cabinetry, large walk-in closets, in-unit washer/dryer connections, central air conditioning, and private patios or balconies. Community amenities include a resort-style swimming pool, a fitness center, a clubhouse with business and resident facilities, landscaped courtyards with gazebos, and barbecue and picnic areas. Parking totals 424 spaces, including 54 garages, with controlled-access entry. A third-party needs assessment characterized the property as being in overall fair-to-good condition with a remaining useful life of at least 50 years, and the trust established reserves to fund identified repairs and recurring capital items.
The property is financed with a single $19,021,000 loan from Berkadia Commercial Mortgage under the Fannie Mae DUS program, carrying a fixed interest rate of 4.950%. The loan is interest-only for its entire term and is nonrecourse to the trust, and it matures on November 1, 2032, broadly aligning with the anticipated seven-year hold. Leverage is moderate: the memorandum cites a loan-to-purchase-price ratio of approximately 50.39% net of reserves (about 47.40% including the trust reserves) and a loan-to-cost ratio of roughly 55.54% measured against the $34,250,000 acquisition price. Fixed-rate, interest-only agency financing at this leverage level helps insulate cash flow from interest-rate volatility during the hold and supports current distributions, though it also means no principal amortization and a balloon repayment at maturity that the trust is not permitted to refinance.
The offering is sponsored by Olympus Property, a Class A multifamily investment and management firm founded in 1992. According to the memorandum, Olympus manages a portfolio valued at over $8.5 billion comprising more than 35,000 units under ownership, development or management across 16 states, and the firm states it maintains equity alongside its partners in every property it manages. Its prior-performance table lists 54 full-cycle realized investments since 2006 with a weighted-average realized net IRR of approximately 25.7%, and the sponsor reports achieving three decades of results without a single capital call. Day-to-day operations are handled by an Olympus affiliate under the master lease, aligning the operator's multifamily experience with the property. Investors should note that the trust and trust manager entities themselves are newly formed and have no operating history of their own.
The interests are structured to qualify as replacement property for investors completing a like-kind exchange under Code Section 1031, allowing accredited investors to defer capital gains from the sale of prior real estate while obtaining fractional ownership of institutional multifamily real estate and an allocable share of the trust's nonrecourse debt. Because the trust holds real property through a Delaware statutory trust in reliance on IRS Revenue Ruling 2004-86, a holder's beneficial interest is intended to be treated as direct real estate ownership for exchange purposes. The structure also contemplates a potential tax-efficient exit: beginning two years after the offering closes, the trust manager may exercise a fair-market-value option to acquire holders' interests for cash or, at the holder's election, units in an exchange entity, offering a possible avenue to continue tax deferral rather than recognizing gain upon a sale of the property.
Analysis of Olympus Tradewinds DST
Insights
Read this as a bond substitute in real-estate wrapping: a seven-year, low-6% coupon on a single stabilized Class A asset atop the Permian Basin, where the exchanger trades appreciation and control for current income and agency leverage. The 6.00% start rising to 6.60% (a 6.24% average) screens Above Average on both starting income (versus a 4.85% benchmark) and peak yield (versus 5.55%), and unlike many DSTs it reads as covered, not financed: the $2,860,000 master-lease rent clears the ~$1.27M Year-1 distribution and ~$0.94M of interest-only debt service, with the 9.22% cap-rate-equivalent above the payout. What you surrender is growth (Below Average) and price: a heavy 16.93% all-in load, bought for an institutional sponsor, a passive structure, and packaged exchange debt, not upside. Leverage is conservative at 47.4%, fixed at 4.950%, interest-only and nonrecourse, so rate risk is off the table, but nothing amortizes and the unrefinanceable November 1, 2032 balloon sets the exit clock. The crux is occupancy: the model assumes stabilization near 95% while the property sat at 90.65% in September 2025, and because the coupon runs through an Olympus-affiliate master tenant holding just $25,000 of cash and a $500,000 demand note, any sustained NOI shortfall gets plugged by a shell; Midland occupancy and commodity demand are what we'd watch. The buried number is basis: capitalization near $40.1M sits against a $34.9M as-is appraisal, so the buyer starts roughly 15% above the bricks and must grow through that gap and the load to reach par. Olympus's 54 full-cycle exits at a 25.7% average net IRR are real, but those were operator-driven value-add deals, not flat-coupon DSTs — they vouch for the manager, not this return. Own it for deferral, passive income, and a deep operator over control if you can stomach Permian cyclicality and illiquidity; pass if you underwrite appreciation, principal paydown, diversification, or an entry near asset value.
Advantages
The offering pairs a stabilized, Class A multifamily asset with a moderate, fixed-rate agency capital structure and an experienced multifamily sponsor. Tradewinds Apartments is a 2013-built, 214-unit community that the memorandum reports has historically run in the mid-90% occupancy range, located in Midland, a high-income Permian Basin market where per-capita income is roughly double the national metro average and major energy employers sit within a few miles. Financing is a single $19,021,000 Fannie Mae DUS loan fixed at 4.950%, interest-only and nonrecourse, which stabilizes debt cost and supports current income during the hold. The trust targets distributions beginning at 6.00% of equity and rising to 6.60% over an approximately seven-year hold, backed by a master lease with base rent starting at $2,860,000 plus percentage rent. For a 1031 exchanger, the DST delivers genuinely passive ownership, an allocable share of nonrecourse debt to help satisfy exchange requirements, comparatively low minimums relative to acquiring a whole replacement property ($250,000 for exchange investors), and a potential fair-market-value option to roll into exchange-entity units for continued deferral. The sponsor's stated track record - over $8.5 billion in assets, more than 35,000 units and 54 realized full-cycle deals averaging roughly 25.7% net IRR since 2006 - adds institutional depth and operational alignment to the offering.
Concerns
The interests are illiquid and speculative: no public market exists, transfers are restricted under securities laws and the loan documents, holders have no redemption rights, and the number of holders is capped at 480, so investors must be prepared to hold for an indefinite period and can lose their entire investment. Holders have no voting rights and no control - the trust manager makes all decisions, including whether and when to sell, and neither the trust manager, the master tenant nor the Delaware trustee owes holders a fiduciary duty. The investment is undiversified, resting on a single property in Midland, a cyclical market the memorandum notes is heavily dependent on oil and gas prices and production. The property carries interest-only leverage that never amortizes and matures November 1, 2032 with a balloon payment the trust cannot refinance, forcing a sale or a conversion to a Springing LLC that would end 1031 eligibility. The DST is inflexible: the trust cannot accept new capital, and various events - a master lease termination, a loan default or a lender cash sweep - can reduce distributions to zero and trigger conversion. The offering also carries meaningful load and fees, including selling commissions and expenses of up to 8.75%, an acquisition fee, a 2% disposition fee and other affiliate compensation paid regardless of profitability. The trust and trust manager are newly formed with no operating history; the master tenant is thinly capitalized ($25,000 in cash plus a $500,000 demand note); the appraised as-is value ($34,900,000) is below the value at which interests are offered; assumed stabilized occupancy of about 95% exceeds the current 90.65%; and the favorable 1031 treatment relies on a tax opinion and Revenue Ruling 2004-86 that the IRS could challenge.
Olympus Tradewinds DST — Complete Offering Data
Offering & Structure
Investment NameOlympus Tradewinds DST
SponsorOlympus Property
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusUnder Review
Last Updated2026-06-21
Size & Availability
Total Offering$40,128,000
Equity$21,107,000
Debt$19,021,000
Available Equity$21,107,000 (100% of equity)
Minimum Investment$25,000
Total Load16.93%
Initial Reserves3.99%
Property
Property TypeMultifamily
StrategyCore-Plus
LocationTX
Market TierTier 3
Income & Projections
Average Yield6.24%
Projected Yields (Y1–Y10)Y1 6.00% · Y2 6.02% · Y3 6.13% · Y4 6.22% · Y5 6.31% · Y6 6.43% · Y7 6.60%
Tax-Adjusted Yield12.84%
Cap Rate Equivalent9.22%
Financing
In-Place LTV47.40% LTV
LenderBerkadia Commercial Mortgage LLC (Fannie Mae DUS)
Loan TypeFixed
Interest Rate4.95% (Fixed)
Loan Term7 years
I/O Period7 years
AmortizationN/A (interest-only)
Y1 DSCR2.48x
Exit
Estimated Hold Period7 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income6.24% vs 4.85% market — Above Average
Growth10.00% vs 24.76% market — Below Average
Peak6.60% vs 5.55% 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.
