Analysis of Investments

Mesa Ridge DST

Starboard Realty Advisors

Starboard Realty Advisors Mesa Ridge is an investment into two retail buildings that are occupied by multiple tenants. The properties total 29,408 square feet and include smaller tenants. The major anchor tenants at the properties are not owned by the trust.

Investment Highlights

  • Yr. 1 Cash-on-Cash 6.14%
  • Initial Occupancy 100.00%
  • Est. Time Horizon None YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.98%
  • Investor Purchase Price $11,700,000
  • Total Offering Size $5,600,000

Loan Information

The loan totals $6,100,000 and is from Cantor Commercial Real Estate Lending LP. The term is for a total of 10 years with the first 5 years being interest only. When amortization begins it will be based on a 30 year schedule. The interest rate is fixed at 5.25%.

  • Yr. 1 DSCR 2.1
  • Loan-to-Offering 52.14%
  • Hold Period DSCR 2.09

Tenant Information & Lease Terms

All of the tenants in this investment are non-investment grade and are small local tenants. The anchors of the shopping centers are not owned by the trust which creates more risk. The current leases on these properties will all expire by 2022.

 

Key Positives

  • This property is currently 100% leased and occupied.

  • The area has strong population growth and is located in an area of high visibility.

Key Risks to Consider

  • The cap rate to investors is low (5.98%).

  • The purchase price of the property was about $1.2 Million above appraised value.

  • The upfront cost on this investment is high (14.95%).

Investment Sponsor Information

Starboard Realty Advisors

According to the sponsor's website: "Starboard Realty Advisors is a commercial real estate investment and operating company, providing shopping center and Class A/B apartment investment opportunities to our clients. We acquire, invest, manage and sell commercial real estate properties and specialize in offering 1031 exchange investment options to Accredited Investors.

Founded by Bill Winn and Steve Carlton, Starboard Realty brings 40 years combined experience in the commercial real estate industry. 

Starboard Realty Advisors acquires primarily multi-tenant retail shopping centers and NNN Single Tenant Retail and Multi-family properties. We offer commercial real estate investment opportunities to Accredited Investors, Family Offices, and Institutional Partners in a joint venture, partnership or Delaware Statutory Trust structure."

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