Your 1031 DST Authority
NewStar 17 Sweetwater Springs DST
Offering Overview
NewStar 17 Sweetwater Springs DST is a $39.4 million Delaware Statutory Trust offering Sweetwater Springs, a 95-townhome residential community (171,271 sq ft on 7.47 acres) built in 2021 at 1510 Duluth Highway in Lawrenceville, Georgia, in the Atlanta metro. Sponsored by NewStar Exchange - an Atlanta-based, vertically integrated real estate firm founded in 2021 by former Preferred Apartment Communities executives - the trust is capitalized with $21.8 million of equity and a $17.6 million Freddie Mac fixed-rate, interest-only loan at 5.10%. It projects a 4.40% first-year distribution rising to 6.02% by year 10 (4.73% average), with a $100,000 minimum for 1031 investors.
Investment Highlights
- 95-townhome community built in 2021 in Lawrenceville, GA, in the high-growth Atlanta metro.
- 4.40% first-year distribution rising to 6.02% by year 10 (4.73% average).
- $17.6M Freddie Mac fixed-rate (5.10%), interest-only loan; 44.7% LTV; roughly 2.06x Year-1 DSCR.
- Sponsored by NewStar Exchange - Atlanta-based, vertically integrated, founded by former Preferred Apartment Communities (NYSE: APTS) executives.
- $100,000 minimum (1031); 2021-built townhomes with private garages and smart-home features.
Forecasted Cash Flow
Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.
Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.
Analyst Notes
A smaller, growth-oriented Atlanta townhome DST from an experienced-but-new sponsor. The rising yield and 2021 construction appeal to income investors comfortable with a newer sponsor and a single-asset, no-721 structure.
Pros
Newer (2021) townhome product in a fast-growing Atlanta submarket; long-term fixed-rate agency (Freddie Mac) debt; experienced ex-PAC management team; rising distribution schedule.
Cons
Newer DST sponsor with a limited DST track record; roughly 10.25% load on equity; no affiliated-REIT 721 exit; smaller single-asset offering; interest-only loan with balloon maturity in 2036.
Financing
Financing terms for this offering are summarized below.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 4.73% | 5.03% | −5.96% |
| Max Yield | 6.02% | 5.29% | +13.80% |
| 10-Yr Income Growth | 36.82% | 24.74% | +48.83% |
Benchmark reflects the average of comparable Multifamily offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
NewStar is a vertically integrated, full-service real estate firm based in Atlanta, Georgia, founded in 2021 by former executives of Preferred Apartment Communities (NYSE: APTS). Through its NewStar Exchange affiliate it sponsors 1031/DST offerings in income-producing residential communities across fast-growing Southeastern markets. As of February 2026 it manages 15 residential investments totaling more than 1,100 units and roughly $350 million in total cost.
This page describes a specific Delaware Statutory Trust offering (NewStar 17 Sweetwater Springs DST) and is provided for informational purposes only. It does not constitute an offer to sell or a solicitation of an offer to buy any security. Any offering is made solely to verified accredited investors and only by means of a confidential private placement memorandum (PPM).
All figures shown — including minimum investment, cash-flow projections, tax-equivalent yield, loan-to-value, and hold period — reflect the sponsor's current estimates and assumptions and are not guarantees of future performance. Tax-equivalent yield depends on each investor's tax circumstances; projected distributions may not be achieved and actual results will vary. Sponsor track record, benchmark data, and full-cycle averages describe prior programs and are not indicative of the results of this offering.
An investment in a DST is speculative, illiquid, and involves a high degree of risk, including the possible loss of the entire amount invested. There is no public market for these interests, distributions are not guaranteed, and investors have no control over property operations. 1031 exchange and tax treatment depend on each investor's individual circumstances and on tax laws that are subject to change; consult your own tax and legal advisors.
Tax-equivalent yield represents the pre-tax yield a fully taxable investment would need to generate in order to match the after-tax cash flow of this offering. It assumes that a portion of distributions is sheltered by depreciation and other deductions, and it depends entirely on each investor's individual tax bracket, state of residence, and holding structure. It is illustrative only and is not a projection of return. Cap rate equivalent is the implied capitalization rate (net operating income divided by purchase price) shown solely for comparison to direct real estate; it is not a distribution rate, a yield, or a measure of investor return.
This offering and all terms shown are subject to change, withdrawal, or cancellation at any time without notice, and availability is not guaranteed. Nothing on this page creates a commitment or reservation. An investment is confirmed only upon the sponsor's acceptance of fully executed subscription documents; no other communication, indication of interest, or reservation constitutes a binding investment.