Power 5 Conference Student Housing I, DST

Strategic 1031 Properties, LLC

1031 Exchange Investor: $100,000

Equity Offering: $59,200,000

  • Cash Investor: $25,000
  • Fully-Loaded LTV: 51.97%
  • $4,250,000 up front for future capital expenditures and unforeseen repairs.

UNIVERSITY OF MICHIGAN

  • 3 blocks from the University of Michigan
  • Constructed in 2009
  • Fully furnished, energy-efficient appliances
  • 10-story building with 93,780 square feet
  • 97 units / 345 beds
Strategic 1031 Properties, LLC

UNIVERSITY OF SOUTH CAROLINA

  • 1 block from the University of South Carolina
  • Constructed in 2009
  • Fully furnished, energy-efficient appliances
  • 4-story property with 366,442 square feet
  • 400 units / 760 beds

Property Description

WHY UNIVERSITY OF MICHIGAN?

  • Michigan is an NCAA Division I FBS school with an endowment of $10.9 billion as of 2017
  • Michigan’s 2017 enrollment was 46,002 students
  • Michigan is a member of the Big 10 Conference
  • Michigan is one of the world’s leading research universities and offers highly ranked graduate programs that include business, law, medicine, and engineering

Michigan Property Summary

  • Investment Product: Purpose-Built Student Housing
  • Location: Three blocks from University of Michigan
  • Address: 411 E Washington St Ann Arbor, MI 48104
  • Enrollment: 46,002
  • Year Built: 2009
  • Occupancy: 98% Leased
  • Total Units / Beds: 97 / 345 Fully Furnished
  • Interest Rate: 4.34% Fixed Rate
  • Loan Terms: 10 year Fannie Mae with 5 year interest only, 30 year amortization thereafter
  • Interior Finishes: Full kitchen in each unit with granite counters, dishwasher and microwave, flat-panel HDTV, Wi-Fi, key card entry, energy efficient lighting
  • Community Amenities: 10th floor sky lounge with fitness center, big screen TV, study room, laundry facilities, attended lobby and cameras, onsite retail and restaurants

WHY UNIVERSITY OF SOUTH CAROLINA?

  • South Carolina competes in NCAA Division I athletics in the Southeastern Conference (SEC)
  • South Carolina’s 2017 enrollment was 34,099
  • The Carnegie Foundation awarded South Carolina the highest rating for research activity
  • The University participates in the SmartState Program which creates Centers of Excellence to advance research and boost the state’s economy

South Carolina Property Summary

  • Investment Product: Purpose-Built Student Housing
  • Location: One block from University of South Carolina
  • Address: 1000 Whaley St Columbia, SC 29201
  • Enrollment: 34,099
  • Year Built: 2009
  • Occupancy: 100% Leased
  • Total Units / Beds: 400 / 760 Fully Furnished
  • Interest Rate: 4.14% Fixed Rate
  • Loan Terms: 10+ year Fannie Mae with 5+ year interest only, 30 year amortization thereafter
  • Interior Finishes: Full-size washers and dryers, hardwoodstyle kitchen floors, electronic key locks, modern appliance package, private balconies, Wi-Fi and cable
  • Community Amenities: Resort-style swimming pool with courtyards and grilling station, club room, business center with computer lab, 24-hour fitness center

ABOUT Michigan & South Carolina

Equity Offering: $59,200,000 of beneficial interests in the Trust
Minimum Investment: 1031 Exchange Investor: $100,000
Cash Investor: $25,000
Fully-Loaded LTV: 51.97%
Reserves: $4,250,000 up front for future capital expenditures and unforeseen repairs. An additional $143,684 per year will be reserved for FFE (Furniture, Fixtures and Equipment) replacement and scheduled repairs and maintenance.