Passco Toscana DST Overview
Passco Toscana DST is a Regulation D 1031 exchange offering from Passco Companies, the Irvine, California-based multifamily sponsor with roughly $4.3 billion of assets under management across 17 states. The trust owns Novella at Tuscan Village (formerly Hanover Toscana), a 230-unit, six-story Class A apartment community completed in 2024 by The Hanover Company in Salem, New Hampshire. The property sits inside Tuscan Village, the roughly 170-acre master-planned, mixed-use district rising on the former Rockingham Park racetrack site just off Interstate 93 at the Massachusetts border, about 35 miles from downtown Boston. Residences run from studios to three-bedroom homes with nine- to eleven-foot ceilings, premium appliances, and custom walk-in closets, supported by three resort-style courtyards, a resident lounge with a gourmet entertaining kitchen and modern workspaces, a fitness center, dog park, smart package room, and EV charging. The offering seeks $77.4 million of investor equity at a sponsor-stated 47.04% loan-to-value with fixed-rate financing, projects 4.40% first-year cash flow, and carries minimums of $100,000 for 1031 exchange investors and $25,000 for cash investors.
Highlights
Brand-new, institutionally built real estate: the property was completed in 2024 by The Hanover Company, one of the country's most respected private luxury multifamily developers, and acquired by Passco in early 2026. The six-story midrise houses 230 residences from studios to three-bedrooms with nine- to eleven-foot ceilings, premium appliances, custom walk-in closets, and built-in desks, managed by Greystar. A 2024 vintage means modern systems, no deferred maintenance, and minimal near-term capital expenditure risk.
A prime position inside Tuscan Village, southern New Hampshire's marquee mixed-use development. The roughly 170-acre district, built on the former Rockingham Park racetrack site in Salem, is a regional destination anchored by Whole Foods, national retail and dining, offices, and a major Mass General Brigham ambulatory care campus. Residents step out the door into a walkable live-work-play environment that is rare in New England's suburbs — an amenity base that supports premium rents without the trust owning any of it.
New Hampshire's tax climate is a structural demand driver: the state levies no tax on wage income and no general sales tax, and U.S. News ranks it the #2 state in America overall. Salem sits directly on the Massachusetts border along I-93, a natural landing spot for Boston-area households and employers seeking tax relief without giving up metro access. Rockingham County is New Hampshire's wealthiest county by median household income and among its fastest growing, with nationally ranked tech and pharma employment concentrations.
Tier 1 metro scarcity instead of Sunbelt supply risk. Salem lies within the Boston metropolitan orbit, one of the most supply-constrained apartment markets in the country, where zoning, land scarcity, and permitting keep new deliveries structurally low. While Sunbelt metros digest a historic supply wave that has flattened rents, New England Class A product competes against a thin pipeline — a barrier-to-entry profile that protects occupancy and rent growth and differentiates Toscana from most multifamily DSTs on the shelf.
Conventional DST structure from a 28-year sponsor. Passco has operated since 1998 and manages roughly $4.3 billion across 17 states. The trust is raising $77.4 million of equity (SEC Form D filed March 17, 2026; first sale April 20, 2026) at a sponsor-stated 47.04% loan-to-value with fixed-rate financing — squarely in the range most exchangers need for debt replacement. Projected first-year cash flow is 4.40%, with minimums of $100,000 for 1031 investors and $25,000 cash; roughly three quarters of the equity was subscribed within about four months of launch.
Analysis of Passco Toscana DST
Insights
The thesis here is scarcity, not yield. Passco is offering something the DST shelf almost never carries: brand-new, Hanover-built Class A multifamily inside the Boston metropolitan orbit, in a state whose tax regime actively recruits its neighbor's residents. Most multifamily DSTs of the past two years sit in Sunbelt metros digesting record supply; Toscana competes against a structurally thin New England pipeline, which is why its 4.40% first-year cash flow — unremarkable on its face — buys a materially different risk profile than the same number on a Phoenix or Atlanta lease-up. On relative value, compare it inside Passco's own 2026 stable: Preston Ridge (NC) and Allure (VA) are the Sunbelt growth stories; Toscana is the barriers-to-entry play, and buyers noticed — roughly three quarters of the $77.4 million raise was absorbed in four months. The crux risk is basis: implied capitalization near $146 million, about $635,000 per unit, prices the scarcity in, so the exit rides on premium rents compounding and cap rates for trophy suburban product staying tight — while four sister communities inside the same 170-acre village bid for the same renters. The non-obvious point: Massachusetts' millionaires tax and cost-of-living migration act as a demand subsidy specific to border towns like Salem — few DSTs anywhere have state-line tax arbitrage built into tenant demand. This fits a leveraged exchanger who needs roughly 47% fixed-rate debt replacement and values asset quality over maximum income across a decade-long hold. Income-first investors and anyone needing high-LTV or zero-coupon debt should pass — and until the PPM loan terms, hold period, and load are verified, it belongs Under Review rather than on the Available shelf.
Advantages
The deal pairs very new physical product with a hard-to-replicate location: a 2024 Hanover-built Class A midrise inside Tuscan Village, beside Whole Foods and a Mass General Brigham campus, on I-93 at the Massachusetts line. New construction means minimal deferred maintenance and low near-term capex, protecting early-year cash flow. The demand story is structural — New Hampshire's zero wage-income-tax, zero-sales-tax regime keeps pulling Boston-area households across the border, and Rockingham County is the state's wealthiest and among its fastest-growing. New England's supply barriers are the mirror image of the Sunbelt's glut, giving rent growth assumptions a defensible footing. The 47.04% fixed-rate leverage suits exchangers needing meaningful debt replacement without high-LTV refinancing risk. And the market has voted: the $77.4 million raise went from $75 million available in late April to roughly $15-20 million remaining by the end of July.
Concerns
First-year cash flow of 4.40% is modest — debt-free net-lease DSTs and some Sunbelt multifamily deals pay more day one, so investors are trading current yield for asset quality. The stated 47.04% LTV against $77.4 million of equity implies total capitalization approaching $146 million, roughly $635,000 per unit — a full basis that depends on premium rents holding (studios start around $2,461). Competition is literally next door: Tuscan Village also contains the Hanover Tuscan Village, Siena, Caro, and Corsa communities chasing the same renters, and a 2024-vintage building may still be burning off lease-up concessions. It is a single asset in a single submarket, in a smaller New England node with thinner institutional exit liquidity, and New Hampshire's high property taxes offset part of its income-tax appeal. Several PPM-level terms — lender, rate, maturity, interest-only period, hold period, and total load — remain unverified in our review; SEC filings show estimated selling commissions near $5.9 million plus about $10.6 million of depositor-paid costs.
Passco Toscana DST — Complete Offering Data
Offering & Structure
Investment NamePassco Toscana DST
SponsorPassco
StructureDelaware Statutory Trust (DST)
Offering Type506(b)
StatusLimited Availability
Last Updated2026-08-10
Size & Availability
Total Offering$146,150,000
Equity$77,400,000
Debt$68,750,000
Available Equity$10,000,000 (12.9% of equity)
Minimum Investment$100,000
Total Load12.20%
Initial Reserves7.63%
Property
Property TypeMultifamily
StrategyCore
LocationNH
Market TierTier 1
Income & Projections
Average Yield4.40%
Projected Yields (Y1–Y10)Y1 4.40%
Tax-Adjusted Yield11.24%
Cap Rate Equivalent8.33%
Financing
In-Place LTV47.04% LTV
Loan TypeFixed
Exit
721 Exchange ExitUnclear
Benchmarks (vs sector median)
Avg. Income4.40% vs 4.85% market — Below Average
Growth0.00% vs 24.76% market
Peak4.40% vs 5.55% market — Below 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.
