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Passco Allure DST property photo

Passco Allure DST

Sponsored by Passco
Minimum Investment$25,000
Total Offering$106,925,000
Available Equity$50,000,000 85.36% available
Equity$58,575,000
Debt$48,350,000
In-Place LTV45.22% LTV
Average Yield4.40%
Est. Tax-Adjusted Yield¹11.19%
Cap Rate Equivalent8.25%
LocationVA
Estimated Hold Period10 years
721 Exchange ExitOptional
Total Load15.01%
StrategyCore-Plus
StatusAvailable

Overview

Allure at Edinburgh is a 280-unit luxury multifamily community completed in 2024/2025 on approximately 11.74 acres in Chesapeake, Virginia. The property offers one-, two-, and three-bedroom apartments averaging 973 square feet and was 98.57% occupied as of April 27, 2026. Residents have access to a resort-style pool, fitness and yoga facilities, golf simulator, movie theater, arcade, coworking areas, pet amenities, EV charging, and other high-end features. Passco acquired the property for $94.095 million and financed it with a $48.35 million fixed-rate Fannie Mae loan. The business plan targets rent growth, ancillary-fee increases, resident retention, amenity enhancements, and disciplined expense management over approximately ten years. Offered under Rule 506(b).

Highlights

Newly constructed 280-unit luxury multifamily asset with 98.57% occupancy.

Affluent resident base with approximately $115,080 median household income and a 21.69% rent-to-income ratio.

Fixed 4.98% Fannie Mae financing with seven years of interest-only payments.

Chesapeake submarket forecasts approximately 2.8% annual rent growth through 2030.

Optional FMV exit permitting cash or affiliated exchange-entity units.

Analysis

Insights

A stabilized luxury multifamily investment with modest current yield and limited operating cushion. Success depends on maintaining occupancy, achieving rent growth, controlling taxes and insurance, and selling before the May 2036 balloon. The affiliated master tenant has limited capitalization, while most reserves initially take the form of a six-month sponsor-funded note.

Advantages

New construction; high occupancy; affluent tenancy; extensive amenities; fixed-rate financing; strong initial debt-service coverage; and an optional tax-efficient exit.

Concerns

Single-asset concentration; investor basis materially exceeds the $92.9 million appraisal; projected distributions require reserve support; returns decline when amortization begins; the master lease is not triple-net; and the DST cannot refinance the loan.

Projected Distributions

Average Yield4.40%
Est. Tax-Adjusted Yield¹11.19%
Cap Rate Equivalent8.25%
Y14.35%
Y24.44%
Y34.40%
Y44.49%
Y54.50%
Y64.60%
Y74.70%
Y84.05%
Y94.19%
Y104.31%

Projected, not guaranteed. Distribution rates are the sponsor’s projections, are not a promise of performance, and can be reduced or suspended. ¹ Estimated Tax-Adjusted Yield reflects the projected impact of depreciation and amortization deductions at an assumed combined federal and state tax rate; individual tax outcomes vary — consult your CPA regarding your specific situation. Cap Rate Equivalent is a Baker 1031 Investments calculation intended to allow comparison with direct property ownership; it is not a sponsor-reported figure and does not represent a rate of return. See the private placement memorandum for the assumptions behind these figures.

Financing

LenderKeyBank, National Association (Fannie Mae DUS)
Interest Rate4.98% (Fixed)
Loan Term10 years
I/O Period7 years
Amortization30 years
Y1 DSCR2.10x

Benchmarks

Avg. Income
This deal4.40%
Market4.99%
Below Average
Growth
This deal8.05%
Market25.67%
Below Average
Peak
This deal4.70%
Market5.34%
Below Average

Benchmarks compare this offering’s projected figures against sector medians computed across current offerings tracked by Baker 1031 Investments as of the last-updated date shown. Benchmark data is internal, unaudited, and subject to change.

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