Overview
A 144-unit, newly constructed low-rise / garden-style multifamily community ("The Banks on Bradley," 355 Bradley Blvd., Richland, WA) with a mix of studio, one-, and two-bedroom units, located in the Benton-Franklin (Tri-Cities) market of southeastern Washington. The Property is leased to an affiliate Master Tenant under a master lease that subleases units to residents, with the Trust holding the asset on a Freddie Mac Conventional fixed-rate loan (originated by KeyBank) at 46.09% loan-to-cost—5.11% fixed, seven-year interest-only, 30-year amortization, 10-year term maturing December 2035. The investment thesis is to stabilize a recently delivered asset from a Year-1 economic occupancy of ~80.5% (heavy initial concessions) toward ~90% as concessions burn off, capturing Tri-Cities rent growth (CIVAS forecasts Richland submarket vacancy near 4.2% and rent growth ~2%). Acquired at a positive going-in basis—the ~$34.7M-$35.3M purchase sits below the $36.7M as-is appraisal. Sponsored by Starboard Realty Advisors; 10-year hold.
Highlights
The offering enters at a positive going-in basis, an uncommon equity cushion. The purchase value (~$34.7M contribution / $35.3M in the use-of-proceeds) sits below the appraised "as-is" market value of $36,700,000 (September 2025), corroborated by a second appraisal of $36,740,000 (November 2025), meaning investors acquire below independently assessed value rather than at a premium to it.
The asset is newly constructed, minimizing near-term capital exposure. As a recently delivered community, it carries limited deferred maintenance and low functional-obsolescence risk over the hold, with the capital plan oriented toward stabilization rather than remediation—reducing the likelihood of unbudgeted capital calls that can erode DST distributions.
The submarket exhibits supply-constrained fundamentals. CIVAS forecasts the Richland submarket vacancy at roughly 4.2% over the coming year with rent growth near 2%, and demand is projected to outpace supply in the Benton-Franklin market—characteristics of a smaller, less-overbuilt Pacific Northwest market that support the lease-up and rent thesis.
The capital structure is moderately levered with fixed-rate agency debt. The Freddie Mac loan is fixed at 5.11% with a seven-year interest-only runway at 46.09% loan-to-cost, producing a 2.00x Year-1 debt-service coverage ratio that rises to 2.25x by Year 7 before amortization—substantial coverage headroom and insulation from rate volatility through the I/O window.
Concession burn-off provides a defined stabilization runway. Year-1 economic occupancy of 80.5%, depressed by ~9% concessions on a lease-up asset, is modeled to normalize toward ~90% as concessions fall to ~1%, driving the projected distribution from 4.43% to a 5.54% peak—an identifiable, execution-driven income ramp rather than reliance on speculative market appreciation.
