STARBOARD MESA RIDGE DST
6805-7045 Mesa Ridge Parkway, Fountain, CO
Loan: $6,100,000
Total Equity: $5,600,000
- Loan-to-Offering Price Ratio: 52.14%
- Cash Flow: 5.30%
- Minimum Investment [1031]: $100,000
- Projected Distributions: 6.18% - 7.70% Annualized
Starboard offers multi-tenant neighborhood centers with a diversification of regional and national tenants. Neighborhood centers provide customers with life’s essentials such as food and personal services which are typically difficult to purchase on the internet.
MESA RIDGE PROPERTY
Starboard Mesa Ridge DST intends to acquire Buildings B & D at Markets at Mesa Ridge Shopping Center in Fountain, Colorado (“Mesa Ridge”) for $11,700,000 June 10, 2016. Starboard Realty Advisors (“Starboard”), the sponsor/manager, is offering up to $5,600,000 of equity interests.
INVESTMENT HIGHLIGHTS
• Invest in a 100% leased property with annual tenant rent growth
• Invest in a community with a growing population & jobs
• Professionally managed by experienced sponsor principals & local professional 3rd party property managers
• Markets at Mesa Ridge benefits from its location in the city of Fountain’s retail corridor & is a prominent grocery anchored center in trade area
• Annual rent increases in 15 of 17 tenant leases representing 88+% of tenants
DELAWARE STATUTORY TRUST (“DST”) INVESTMENT STRATEGY
Starboard’s investment strategy for DSTs strives to meet investor objectives and the changing real estate cycle fundamentals of rising interest rates.Historically, a ½ of 1% increase in the 10 Year Treasury Bill will generally cause a 1% increase in capitalization rates*. Since 2008, real estate values have increased largely through cap rate compression. Going forward, we believe value will be created through property performance, revenue growth and in reasing the net operating income (“NOI”).We believe that NOI growth can offset downward pressure on property value caused by rising interest rates and rising capitalization rates.
Starboard’s strategy is to acquire multi-tenant retail shopping centers which historically have three to ten year lease terms and annual rent increases in the tenant leases. The DST will not own the anchor because it usually represents 40-60% of the centers’ income. When an anchor owns their own store, we believe they are more committed to the location and will invest more capital in the store than if it was leased. Our acquisition strategy is preferred to single net lease properties because they typically do not have annual rent increases in their leases. Grocery anchored centers have the opportunity to increase rents during the hold period when tenants renew, or by attracting new tenants that can pay higher rents.
STARBOARD INVESTMENT STRATEGY
Multi-Tenant Retail Neighborhood Centers
Starboard offers multi-tenant neighborhood centers with a diversification of regional and national tenants. Neighborhood centers provide customers with life’s essentials such as food and personal services which are typically difficult to purchase on the internet. Typical neighborhood center tenants have annual rent increases which facilitates the growth of net operating income and property cash flows. If higher interest rates and inflation return, commercial real estate with rent growth has proven to be a good hedge against rising interest and cap rates and its impact on real estate values.
PROPERTY OVERVIEW
MESA RIDGE PROPERTY
Starboard Mesa Ridge DST intends to acquire Buildings B & D at Markets at Mesa Ridge Shopping Center in Fountain, Colorado (“Mesa Ridge”) for $11,700,000 June 10, 2016. Starboard Realty Advisors (“Starboard”), the sponsor/manager, is offering up to $5,600,000 of equity interests. The offering may qualify as a 1031 exchange replacement property. Mesa Ridge is anchored by Safeway Grocery Store* (NAP); in-line tenants include Pizza Hut, ENT Federal Credit Union, Subway The UPS Store, Fantastic Sam’s, Wells Fargo ATM, and Little Caesars just to name a few. Other co-tenants (not part of the offering) in the center include Carl’s Jr., Chic-Fil-A, Jersey Mikes, Starbucks, Taco Bell, and Sonic. Starboard acquires anchored multi-tenant neighborhood centers for diversification of income and rent growth opportunities.
PROPERTY DESCRIPTION
• Anchored shopping center* in Fountain, Colorado
• 29,428 Square Feet
• 2 Buildings
• 4 Parcels on 10.03 Acres
• 17 tenant spaces
• 100% occupied
• Built in 2001
• Triple Net Leases
• 52% Credit & National Chain tenants including Pizza Hut, Fantastic Sam’s, The UPS Store, Wells Fargo, & Safeway (for common area maintenance expenses)
• Mesa Ridge parcels B&D have historical occupancy of from 2011– 2015 of 89%
• Safeway responsible for the maintenance of common area of its own parcel
* SAFEWAY GROCERY STORE BUILDING & LAND ARE OWNED BY SAFEWAY & ARE NOT-A-PART OF THIS PURCHASE.
ABOUT Starboard Realty Advisors, LLC
The Sponsor is Starboard Realty Advisors,LLC, headquartered in Irvine, California, a privately held, fully integrated real estate firm, whose principals have more than 30 years of hands-on, cycle-tested experience in acquiring, developing, leasing, repositioning, managing, financing and disposing of retail, multi-family, office and industrial real estate. The principals of Starboard are William H. Winn and Stephen Carlton. Starboard acquires multi-family, multi-tenant retail shopping centers, and NNN lease properties.
Starboard’s mission is to acquire well located properties primarily in the western U.S., in which current rents have growth potential and which can be acquired at below replacement cost. Starboard acquires primarily stabilized properties with a 7 to 10 year hold period for its 1031 exchange clients and value added properties with a 1 to 5 year hold.