NAI Capital Beach House DST
About Our DST
Strategic Relocation
Ideally situated a few blocks from the Ocean in Santa Barbara, walking distance to the Marina, the Pier, and historic State Street. The rooms are undergoing the final phases of a substantial renovation, providing a clean and modern look.
Long-Term Lease
DST’s require passive investment structures to qualify for 1031 treatment as Fixed Investment Grantor Trusts, and not as a “Partnership.” Therefore, the hotel is master leased to an Operating Company, that will handle all day to day operations. The Lease is an all-net Lease, with all operational expenses carried by the Operator. A significant cash reserve of $2.75M has been created inside the Operating Company to provide stable monthly payments to investors. The Lease has a 10 year term with 3 renewal options of 5 years each. Rates increase by 10% every 5 years
Attractive Rate Of Return
The Lease provides for a 6% return on invested equity, with a 10% increase every 5 years.
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The Future of Santa Barbara
◀ Tech and Innovation Hub: Santa Barbara has quietly formed into a tech hub thanks to its highly educated workforce and proximity to both Silicon Valley and Los Angeles. The city attracts software development, Biotech and green energy opportunities.
◀ Real Estate Development: Santa Barbaras real estate market has always been in high demand due to its desirability, but there has been a notable shift in the type of commercial properties being developed, such as Mixed Use, Luxury and Boutique Hotels, Tourism-Driven Growth, Green Economy and Sustainability, Health and Wellness Industry, Education and Research, Cultural and Event Tourism.
The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof (“issuer”). All potential investors must read the PPM, and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some, or all the principle invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees, expenses and other pertinent information with respect to any investment. Past performances have no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made based on confidential private placement memorandums issued by issuer, or one of its partners/ issuers. Issuer does not guarantee the accuracy or completeness of the information contained herein. DST Units may be sold only to “accredited investors,” as defined in Regulation D under the U.S. Securities Act of 1933, as amended (the “Securities Act”), which, for natural persons, refers to investors who meet certain minimum annual income or net worth thresholds. DST Units are being offered in reliance on an exemption from the registration requirements of the Securities Act and the laws of any U.S. State or non-U.S. jurisdiction, and are not required to comply with specific disclosure requirements that apply to registration under the Securities Act. Neither the U.S. Securities and Exchange Commission nor any other regulatory authority has passed upon the merits of an investment in the DST Units, has approved or disapproved of the DST Units or passed upon the accuracy or adequacy of the offering materials describing the securities. The securities are subject to legal restrictions on transfer and resale in accordance with the governing documents of the Delaware Statutory Trust and applicable securities laws, and investors may be unable to sell or transfer their DST Units. In addition, there is no public market for the DST Units and no such market is expected to develop in the future. Investing in the DST Units involves risk, and investors should be able to bear the loss of their investment.
