Kay Properties & Investments has brought a DST offering full cycle

Winston-Salem, NC Kay Properties & Investments has successfully brought one of its custom Kay Properties DST offerings full cycle on behalf of multiple 1031 exchange and cash investors. 

“Full Cycle” is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time. For example, Kay Properties recently brought this Tacoma Data Center full cycle in similar fashion. 

Dwight Kay, founder and CEO of Kay Properties & Investments, said the Winston-Salem industrial distribution facility DST, sold on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the day that the property was purchased, realized a 126.72% total return, or a 7.19% percent annualized return from their DST 1031 investment. 

“We are proud to have provided another successful custom DST investment opportunity to our clients that resulted in a quality full-cycle return. While past performance does not guarantee or indicate the likelihood of future results, this particular investment is a great example of how Kay Properties’ clients have access to custom DST offerings that are exclusively available to investors working with Kay Properties. The DST offering was made available to Kay Properties clients as a custom DST investment in 2018 on our kpi1031.com platform, and successfully went full cycle in 2022. The positive return marks a significant victory for our investors and another successful outcome for the entire Kay Properties team as we approach, God willing, another record-breaking year,” said Kay. 

Kay said that Kay Properties & Investments offered this custom DST to both 1031 Exchange and direct cash investors. The DST investment included a 30,947 s/f distribution facility that was located in a dense industrial corridor surrounded by numerous distribution-related tenants and just one mile away from Wake Forest University. In addition, the industrial property was 100% leased to an investment grade tenant with a BBB rating by Standard and Poor’s, and was available to accredited investors as an all-cash/debt-free DST offering that provided investors no risk of lender foreclosure. 

Chay Lapin, president and DST specialist with Kay Properties & Investments, said that the combination of a favorable location that was also secured by a long-term lease that was corporately guaranteed by a national tenant, and with an attractive price point per s/f made this industrial distribution facility DST a particularly attractive investment for Kay Properties. 

“We originally acquired the Winston-Salem industrial property approximately four years ago because we saw the asset possessed core real estate value with a stable, investment grade tenant, and strategically connected to Smith-Reynolds Airport via a major transportation artery running through the heart of the Winston-Salem sub-market,” said Lapin. 

“We are very pleased to have provided our investors with stable, uninterrupted monthly distributions throughout the entire hold period and throughout the COVID-19 pandemic. While past performance is certainly no guarantee of future results, and any real estate investment comes with risks, we were pleased to successfully go full cycle and deliver attractive returns on a debt free DST investment for our clients,” said Lapin. 

Senior vice president with Kay Properties & Investments, Jason Salmon said,“since its founding, Kay Properties has always advocated for investors to take a potentially more defensive position by investing in a diversified* portfolio of multifamily, net lease, industrial and other DST offerings as opposed to the more riskier asset DST investments like hospitality, senior care, or oil & gas. This investment offering was a great example of this strategy*, and as our team anticipated, logistics and distribution assets proved to be much more resilient to ‘black swan’ events as COVID-19,”.

Betty Friant, who also is a DST 1031 specialist and oversees the Kay Properties & Investments Washington D.C. office, explained that the Winston-Salem distribution DST was representative of the types of DST investment opportunities that accredited investors can find on Kay Properties & Investments investment marketplace. 

“The power of the Kay Properties platform is really a valuable portal for accredited investors to investigate DST 1031 exchange properties and all-cash/debt-free investments. Thousands of accredited investors, like those who benefited from this particular investment, have registered for an account and received valuable access to the marketplace of Delaware Statutory Trust offerings from over 25 different DST sponsor companies. In addition, they are also able to access custom Delaware Statutory Trust offerings that are only available to clients that work with Kay Properties. It really is a powerful platform, and this latest full cycle investment is a great example of its usefulness to accredited investors,” said Friant.