Your 1031 DST Authority
Starboard Bradley DST
Offering Overview
A 144-unit, newly constructed low-rise / garden-style multifamily community ("The Banks on Bradley," 355 Bradley Blvd., Richland, WA) with a mix of studio, one-, and two-bedroom units, located in the Benton-Franklin (Tri-Cities) market of southeastern Washington. The Property is leased to an affiliate Master Tenant under a master lease that subleases units to residents, with the Trust holding the asset on a Freddie Mac Conventional fixed-rate loan (originated by KeyBank) at 46.09% loan-to-cost—5.11% fixed, seven-year interest-only, 30-year amortization, 10-year term maturing December 2035. The investment thesis is to stabilize a recently delivered asset from a Year-1 economic occupancy of ~80.5% (heavy initial concessions) toward ~90% as concessions burn off, capturing Tri-Cities rent growth (CIVAS forecasts Richland submarket vacancy near 4.2% and rent growth ~2%). Acquired at a positive going-in basis—the ~$34.7M-$35.3M purchase sits below the $36.7M as-is appraisal. Sponsored by Starboard Realty Advisors; 10-year hold.
Investment Highlights
- The offering enters at a positive going-in basis, an uncommon equity cushion. The purchase value (~$34.7M contribution / $35.3M in the use-of-proceeds) sits below the appraised "as-is" market value of $36,700,000 (September 2025), corroborated by a second appraisal of $36,740,000 (November 2025), meaning investors acquire below independently assessed value rather than at a premium to it.
- The asset is newly constructed, minimizing near-term capital exposure. As a recently delivered community, it carries limited deferred maintenance and low functional-obsolescence risk over the hold, with the capital plan oriented toward stabilization rather than remediation—reducing the likelihood of unbudgeted capital calls that can erode DST distributions.
- The submarket exhibits supply-constrained fundamentals. CIVAS forecasts the Richland submarket vacancy at roughly 4.2% over the coming year with rent growth near 2%, and demand is projected to outpace supply in the Benton-Franklin market—characteristics of a smaller, less-overbuilt Pacific Northwest market that support the lease-up and rent thesis.
- The capital structure is moderately levered with fixed-rate agency debt. The Freddie Mac loan is fixed at 5.11% with a seven-year interest-only runway at 46.09% loan-to-cost, producing a 2.00x Year-1 debt-service coverage ratio that rises to 2.25x by Year 7 before amortization—substantial coverage headroom and insulation from rate volatility through the I/O window.
- Concession burn-off provides a defined stabilization runway. Year-1 economic occupancy of 80.5%, depressed by ~9% concessions on a lease-up asset, is modeled to normalize toward ~90% as concessions fall to ~1%, driving the projected distribution from 4.43% to a 5.54% peak—an identifiable, execution-driven income ramp rather than reliance on speculative market appreciation.
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 reads as a core-plus multifamily DST structured as a lease-up/stabilization play on a newly delivered asset, levered moderately with fixed-rate agency debt. The risk-adjusted profile is distinguished by a rare positive going-in basis (purchase below appraisal) and a supply-constrained Tri-Cities submarket, balanced against genuine execution risk on absorbing Year-1 economic occupancy of ~80.5% toward ~90% and reliance on a thinly capitalized affiliate master tenant. Feasibility of the 4.43% to 5.54% distribution schedule hinges on concession burn-off and Richland rent growth materializing as forecast; the Year-8 amortization step-down (to 4.67% cash-on-cash and 1.84x DSCR) and the December 2035 loan maturity define the exit window. The 4.92% average cash-on-cash reflects moderate leverage and the early-year lease-up drag, while the seven-year interest-only period and the appraisal cushion provide downside support relative to a stabilized, full-priced acquisition.
Pros
The offering pairs a newly delivered 144-unit multifamily asset with a positive going-in basis to appraisal and moderate fixed-rate agency leverage. The Freddie Mac loan (5.11% fixed, seven-year interest-only, 46.09% loan-to-cost) insulates cash flow from rate volatility and produces a 2.00x ascending-to-2.25x DSCR through the I/O period. The Tri-Cities submarket offers forecast low vacancy (~4.2%) and positive rent growth, and the business plan rests on a concrete concession-burn-off stabilization path from ~80.5% to ~90% economic occupancy. New construction limits near-term capital risk, the purchase below appraised value provides an equity cushion, and the distribution schedule rises from 4.43% to a 5.54% peak over the hold.
Cons
The entire return thesis depends on lease-up execution: Year-1 economic occupancy of just 80.5% (with ~9% concessions) must climb to ~90% as concessions fall to ~1%, and a slower-than-modeled absorption of this newly delivered asset would directly compress distributions. Revenue flows through a newly formed, thinly capitalized affiliate Master Tenant, so the Trust's cash flow depends on the Master Tenant performing under the master lease while bearing the residential lease-up risk. The investment is a single 144-unit asset in the secondary Tri-Cities market, economically anchored to Hanford-site / PNNL government and agricultural employment—a narrower, single-employer-sensitive demand base than primary multifamily markets. Amortization onset in 2033 (Year 8) lifts total debt service from ~$1.00M to ~$1.26M, cutting cash-on-cash from 5.54% (Year 7) to 4.67% (Year 8) and DSCR from 2.25x to 1.84x. Finally, the loan matures December 1, 2035 with yield-maintenance prepayment penalties through mid-2035, so the 10-year hold must thread a sale or refinancing around the maturity and prepayment window, and the loan-to-appraised-value (~52.6%) exceeds the 46.09% loan-to-cost basis.
Financing
Financing terms for this offering are summarized below.
Benchmark Comparison
| Metric | This Offering | Benchmark | Difference |
|---|---|---|---|
| Average Yield | 4.92% | 5.03% | −2.19% |
| Max Yield | 5.54% | 5.29% | +4.73% |
| 10-Yr Income Growth | 25.06% | 24.74% | +1.29% |
Benchmark reflects the average of comparable Multifamily offerings. Differences are relative to the benchmark.
Offering Documents
Offering Documents Available By Request
About the Sponsor
Starboard Realty Advisors is an Irvine fully integrated firm, founded in 2014 and led by a CEO with prior Passco pedigree, acquiring multifamily and multi-tenant/NNN retail for 1031 clients, with more than $500 million in acquisitions and over 1,900 units. Its differentiation includes a DST Bridge Fund that supplies preferred equity, an ADU-driven multifamily value-add angle, and a disciplined 7-to-10-year stabilized hold model. The leadership lineage and integrated execution position it as a focused mid-market sponsor.
This page describes a specific Delaware Statutory Trust offering (Starboard Bradley 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.