Moody Village Towers DST is a 506(c) offering available to accredited investors only through a registered investment advisor or licensed financial advisor.
A DST, or Delaware Statutory Trust, is a separate legal entity created under Delaware statutory law. The structure allows investors to diversify their exchange proceeds into pieces of institutional quality real estate managed by qualified real estate companies (“sponsors”), and have the opportunity to receive passive income. Rev. Rul. 2004-86 compliance states (i) the DST will be classified as a trust rather than a partnership for purposes of Section 1031 and (ii) each beneficial interest owner will be treated as owning an undivided interest in each asset that is held by the DST.
DST Facts
The investor is not required to create its own special purpose entity. Instead, the investor will own a beneficial interest in the DST. This avoids the complexity of each investor forming and maintaining its own special purpose entity to hold its interest in the property.
The structure is not subject to the decisions of other investors.
The lender will underwrite the property and does not have to underwrite each investor.
In some cases lenders may be able to offer more favorable loan terms. Further, the investor does not have personal liability on the nonrecourse carveouts.
The DST can have up to 2,000 investors which is significantly greater than the 35 investor TIC limit. This allows smaller investments and greater diversification.
Management decisions are made exclusively by the manager/signatory trustee. Thus, the threat of a holdout or rogue investor is eliminated.
A separate deed is not required to transfer the property.
It is easier to invest into multiple DSTs for both diversification and to solve mortgage boot issues.
Executive Summary
What is a 1031 Exchange?
About the Sponsor
Village Towers Tenants
Important Risk Disclosure
The Trust is speculative and prospective investors should be able to afford the loss of all or a substantial part of their investment. The Interests are subject to restrictions on transferability and resale and holders may have to hold their investment for an indefinite period of time. This is not an offer to sell securities. An offer to sell Class A beneficial ownership interests (the “Interests”) of Moody Village Towers DST (the “Trust”) may be made only pursuant to the Moody Village Towers DST Confidential Private Placement Memorandum, as amended and supplemented (the “Memorandum”). The information contained herein is qualified in its entirety by the Memorandum and the Memorandum contains more complete information regarding an investment in Interests.
Securities offered by Moody Securities, LLC, an affiliate of the Trust. Member FINRA/SIPC.
An investment in Interests involves substantial risk including, but not limited, to the following: The Trust is speculative and prospective investors should be able to afford the loss of all or a substantial part of their investment. • There will be no public market for the Interests. • The Interests are subject to restrictions on transferability and resale and holders may have to hold their investment for an indefinite period of time. • Delaware statutory trusts are a relatively recent vehicle for real estate investment and are inflexible vehicles to own real Property. • Investors will have no voting rights or control over management of the Trust or The Village Towers (the “Property”). • There is no guarantee that investors will receive any return. • The performance of the Trust will depend on the Property’s ability to generate rent. • The property will be subject to the risks generally associated with the acquisition, ownership, financing and operation of real estate including, without limitation, environmental concerns, competition, occupancy, easements and restrictions and other real estate related risks. • An investment in the Trust will not be diversified. • The manager for the Trust (the “Trust Manager”) and its Affiliates will receive substantial compensation in connection with the Offering of Interests and operation of the Project. • The Trust Manager is a newly formed entity with no history of operations, no experience managing Delaware statutory trusts and limited capital. • An investment in the Interests involves certain tax risks. • The uncertain impact of the COVID-19 virus. • Potential adverse impacts due to inflation and rising interest rates on the Trust’s operations. • The Project was acquired from affiliates of the Trust. • There may be conflicts of interest among the Trust Manager, the master tenant and their affiliates. • Recent geopolitical conflicts and the potential for cyber attacks have created an air of uncertainty concerning the security and stability of the United States economy. See the Memorandum for more details.
The offering of Interests in the Trust will not be registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any state and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and such state laws. Certain disclosure requirements which would have been applicable if the Interests were registered are not required to be met. Neither the Securities and Exchange Commission nor any other federal or state agency has passed upon the merits of or given their approval to the Interests, the terms of the Offering or the accuracy or completeness of the Memorandum. Securities offered through Moody Securities, LLC, a member of FINRA and SIPC. The information contained herein is not an offer or a solicitation related to the sale of any securities. Such an offer or solicitation can be made only through the Memorandum, which is always controlling and supersedes the information contained herein in its entirety. The information contained herein is not to be construed as tax or legal advice, as neither Moody Securities, LLC, nor any of its associated persons are qualified tax or legal professionals. Subject to certain regulatory requirements, the information contained herein is confidential, and only for the use of its intended recipient(s).
NEITHER THE ATTORNEY GENERAL OF THE STATE OF NEW YORK NOR ANY OTHER STATE REGULATORS HAVE PASSED ON OR ENDORSED THE MERITS OF THIS OFFERING. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
Not a deposit – Not FDIC Insured – Not Bank Guaranteed – May Lose Value