NexPoint Marina DST

Offering Overview

NexPoint Marina DST is a two-property, debt-free portfolio of marina and boatyard operating assets held in a parent DST over two operating sub-DSTs (Eufaula and Grafton). Eufaula Cove Marina (400 & 610 Lakeshore Drive, Eufaula, OK; ~145 acres, 459 wet slips plus 8 jet-ski slips, ~14,200 NRSF; developed 1988/2010) sits on Lake Eufaula in McIntosh County within four hours of Tulsa, Oklahoma City, Dallas and Little Rock, incorporates a Camp Jellystone-franchised camp-resort, and runs roughly 80% occupancy on seasonal leases. Grafton Harbor (215 West Water Street, Grafton, IL; ~5.48 acres, 252 slips plus 25 jet-ski slips, ~5,000 NRSF; developed 2006) sits on the Mississippi River in the St. Louis MSA and is effectively 100% occupied with an active waitlist. Both assets are held as leasehold interests in improvements rather than fee simple, under long-dated municipal ground leases (Eufaula to 2071 plus a 50-year renewal; Grafton to 2100 plus a 98-year renewal), with the DSTs owning the improvements and leaseholds, not the underlying land or water. The portfolio was acquired for $36.0M ($25.0M Eufaula / $11.0M Grafton) against a $36.5M aggregate appraisal, capitalized entirely with $42,710,095 of equity on a debt-free basis, against $3.07M of Year-1 NOI. The thesis is to institutionalize fragmented owner-operated marina assets in supply-constrained waterfront corridors, driving mark-to-market rent on annual slip leases, lifting Eufaula seasonal occupancy, and expanding ancillary revenue (boat rental, fuel, F&B, liquor, camp-resort) under specialist manager New Haven Property Management, with disposition targeted within five to ten years via sale or a discretionary Section 721 UPREIT into the NexPoint REIT platform.

Investment Highlights

• Marina supply is structurally constrained: new development demands deep protected water, upland area for parking and services, and difficult entitlements, leaving near-zero replacement supply in established corridors. The two assets occupy scarce, hard-to-replicate positions on Lake Eufaula and the Mississippi River at Grafton, conferring durable pricing power; the qualification is that this barrier protects the existing footprint rather than enabling expansion, capping organic growth to rate and ancillary-revenue gains.
• Marina income is diversified across slip and jet-ski rental, boat rental, fuel, F&B, liquor at Grafton, restaurant and service leases, and the Eufaula Camp Jellystone camp-resort, reducing single-stream dependence. The trade-off is operating-business exposure absent from pure net lease, including roughly $0.8M of Year-1 cost of goods sold, so a portion of the headline yield is operating margin rather than contractual rent.
• Grafton is effectively 100% leased with a waitlist while Eufaula runs roughly 80% on seasonal leases, leaving a concrete occupancy-lift opportunity at the larger asset. Annual lease tenor permits rapid mark-to-market repricing, and Grafton average tenant tenure of about 4.1 years (54%+ at five or more years) evidences sticky demand that supports retention through rate increases.
• The all-equity capitalization eliminates refinancing, maturity, rate-cap and foreclosure risk and removes the equal-or-greater-debt replacement requirement for 1031 investors, delivering certainty of distributable cash. The structural cost is the absence of positive leverage, so the roughly 7.98% average cash-on-cash is an unlevered yield with no debt amplification of equity returns.
• Both properties are municipal leaseholds: the DSTs own improvements and long-dated City Leases (Eufaula to 2071, Grafton to 2100) rather than land and water. The long tenor and renewal options preserve a multi-decade runway well beyond the hold, but the leasehold introduces a depreciating-interest profile, reversion considerations, and a 1031 real-property characterization investors should confirm with tax counsel.

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

The offering is a debt-free, income-first allocation to a niche, supply-constrained specialty class, and its roughly 7.98% average distribution is genuinely unlevered, attractive on a risk-adjusted basis relative to leveraged net-lease DSTs precisely because it carries no refinancing or rate exposure in a higher-for-longer environment. The analytical tension is that the real estate is in substance a leasehold operating-business portfolio: yield durability depends on seasonal leisure demand, fuel/F&B/camp-resort margins, and a recently established manager, not long-dated credit-tenant leases, so cash-flow quality is lower than the headline yield implies even as the absolute level is high. Feasibility rests on lifting Eufaula occupancy, executing annual mark-to-market across both marinas, and growing ancillary revenue faster than cost of goods, plausible given documented scarcity and sticky tenure but unproven under institutional ownership. The municipal ground-lease tenor (2071/2100) comfortably exceeds the five-to-ten-year hold, and the debt-free structure plus the NexPoint REIT-platform 721 optionality provide tangible exit flexibility; the leasehold characterization, affiliate-seller dynamics, and two-asset concentration are the idiosyncratic items least reflected in the distribution rate.

Financing

This offering is unleveraged — the DST holds its assets debt-free (0% loan-to-value), so no mortgage financing applies.

Benchmark Comparison

Benchmark reflects the average of comparable Marina offerings. Differences are relative to the benchmark.

Offering Documents

Offering Documents Available By Request

About the Sponsor

NexPoint

NexPoint is a Dallas alternative manager—an affiliate of the former Highland Capital complex—overseeing roughly $15 billion across listed and non-listed REITs, DSTs, 1031 exchanges, interval funds and a BDC. Its breadth across real estate and credit, paired with significant own-capital co-investment, gives it institutional heft in the exchange channel, and its concentrated Dallas/Uptown asset base reflects conviction in its home market. For exchangers, the platform offers a diversified menu backed by a sizable alternatives manager.