Starboard Makley DST

Offering Overview

Makley Place is a recently delivered, six-story Class A mixed-use asset at 210 West 5th Avenue in Columbus, Ohio (43201), comprising 140 studio/one-/two-bedroom residential units across ~102,768 NRSF, three ground-floor commercial suites totaling ~6,128 NRSF, and 111 parking spaces on a 1.178-acre infill parcel; the amenity package (clubhouse, fitness center, business center, secured bicycle storage) targets the OSU-adjacent renter cohort. Sited ~2.5 miles north of the Columbus CBD and proximate to The Ohio State University (Franklin County's largest employer, with a ~$6.8B endowment), alongside the State of Ohio and JPMorgan Chase employment bases, the submarket draws on a deep, demographically resilient renter pool spanning university, healthcare, public-administration, and an expanding technology footprint (Battelle, regional semiconductor investment). The asset carries a City of Columbus Community Reinvestment Area agreement abating 100% of the assessed-value increment for 15 years from certificate of occupancy in exchange for 28 income-restricted units (14 at <=80% AMI, 14 at <=100% AMI). The operating thesis is stabilization-and-optimization: closing the ~260 bp gap between in-place (91.4%) and stabilized (94%) occupancy and layering two new ancillary revenue lines (a furnished corporate-rental program on five units via Landing/AMG and a Lloyd's-backed Resident Protection Plan netting ~$11/unit/month) under a Sponsor-affiliated master-lease structure financed with fixed-rate, interest-only Freddie Mac debt.

Investment Highlights

• The Community Reinvestment Area abatement is the single most consequential structural advantage: shielding 100% of the assessed-value increment from real property taxation for 15 years post-CO compresses the asset's largest non-controllable expense during the early-to-mid hold, evidenced by modeled property taxes holding near $49,000-$53,000 through Year 6 before stepping toward $163,000 by Year 10 as the benefit phases out. The 28-unit affordable set-aside (20% of unit count) is the consideration for that shield, but at <=80%/<=100% AMI bands in a supply-constrained, OSU-driven submarket the effective rent give-up is modest relative to the tax savings captured, producing an NOI uplift the Colliers appraisal explicitly capitalized into $3.75M of the $39.1M as-is value.
• Submarket positioning rests on a quasi-captive demand base: proximity to a 1,764-acre OSU main campus with a large, perennially renewing student and graduate-employee population yields structurally low demand elasticity and durable absorption, while the intact, walkable urban fabric of near-north Columbus and constrained infill land supply elevate replacement-cost barriers to competing product. Franklin County's employer diversification across education, state government, healthcare, financial services (JPMorgan Chase), and a growing R&D/technology cluster (Battelle) dampens single-sector cyclicality, lending support to the 2.4%-3.0% forward rent-growth assumptions.
• The financing is a defensive feature in the current rate regime: a $23,684,000 Freddie Mac Conventional Fixed Rate Program loan at a fixed 5.44% for the full ~10-year term (maturing September 1, 2035), fully interest-only with zero scheduled amortization, maximizes current distributable cash and eliminates the floating-rate and cap-renewal exposure that has impaired peer 2021-2023 vintage syndications. A $473,680 interest-rate buydown was funded at closing to achieve the coupon, and the Actual/360 convention is reflected in the ~$1.31M annual debt service, generating a Year 1 DSCR of 1.75x that expands to 2.10x by the terminal year as NOI grows against a static interest burden.
• The three ground-floor commercial suites provide diversified, expense-recovering income, with tenants reimbursing their proportionate share of operating expenses, taxes, and maintenance, insulating residential cash flow from commercial cost inflation. Lease laddering is favorable: Kida House (1,945 SF) carries a long initial term to 6/30/2035 with escalations from $47,128 to $58,954 and three five-year renewal options, while Sweetly Bronzed (2,089 SF) runs to 10/31/2029 stepping to $46,906; the small commercial footprint (~6% of NRSF) limits retail-specific downside while preserving mixed-use placemaking value.
• The Supplement-introduced revenue overlay is a low-capex margin enhancement: the Landing/AMG furnished corporate-rental program targets premium, higher-turnover rents on five units with limited owner capital outlay, supported by Columbus comparables generating $93,000-$105,000 of incremental owner revenue at four-to-five-unit deployments, while the Lloyd's-backed Resident Protection Plan converts a renters-insurance line into ~$11/unit/month of high-margin income with a damage-waiver benefit that also mitigates uncollected-damage leakage. Both initiatives front-load into Master Lease Year 1 with a true-up/special-distribution mechanic, accelerating the distribution ramp independent of base-rent growth.

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 risk-adjusted profile is that of a stabilized-core multifamily asset wrapped in a tax-advantaged DST with a modest operational-optimization overlay, appropriately Core-Plus rather than Core given residual lease-up and unseasoned ancillary revenue. Leverage economics are roughly neutral: a Year 1 NOI yield of ~5.85% on appraised value and ~6.00% on purchase price against a 5.44% fixed cost of debt implies a thin but positive going-in spread that improves as NOI compounds against static interest. The defining tension is temporal: the underwriting back-loads returns (distributions ramping 4.52%-5.77%, DSCR 1.75x-2.10x) as the tax abatement decays and an interest-only balloon matures, leaving terminal value highly sensitive to the 2034-2035 exit pricing and rate environment. Forward rent-growth assumptions of 2.4%-3.0% are defensible against Columbus's demographic and employment trajectory, but the incremental revenue from the five-unit Landing program and the resident-insurance line, while plausibly supported by third-party comparables, is not yet demonstrated at this property and represents the principal upside-case dependency. The optional Section 721 exit affords a potential tax-deferred liquidity path beyond a straight third-party sale, though it remains discretionary to the Administrative Trustee and unquantified.

Financing

Financing terms for this offering are summarized below.

Benchmark Comparison

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

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.