Press Release: Versity Invest, LLC Introduces New Increased Yield Enhancement Feature of 6.5% for Hayworth Tanglewood DST
Recent census data released by the Greater Houston Partnership reveals that the Houston region experienced the second-largest population growth among major metros in the U.S. between the summers of 2021 and 2022.
With over 200 people relocating to Houston daily, The Hayworth offers a sophisticated living experience for those seeking luxury.
Thanks to the meticulous attention to detail provided by the on-site team, the property boasts an impressive occupancy rate of over 97%. In light of this success, management has raised amenity fees and plans to optimize spending on contracted services.
The introduction of the Yield Enhancement feature comes in response to recent data from industry sources Robert A. Stanger & Co. and Mountain Dell Consulting, indicating a slowdown in capital formation for DST programs.
As DSTs sit on the shelf for extended periods, sponsors accumulate preferred and/or bridge equity costs. Recognizing the challenges posed by this economic environment, Versity identifies an opportunity to offer a win-win solution to investors.
"We view this as a win-win scenario because investors will benefit from increased returns, and the sponsor can redirect funds to reward investors rather than paying fees to preferred equity and bridge lenders. Our objective is to navigate this challenging economic climate while ensuring the best possible outcomes for all stakeholders."
The sustainability of this payment for the next 24 months will be supported by the Master Tenant Hayworth Tanglewood Leaseco, LLC, an affiliated entity of Versity Invest, LLC. The Master Tenant generates ample revenue from the property’s operations to cover the Base Rent (Debt Service) and the entirety of the previous Stated Rent (4.00%). The Sponsor will cover the difference between the Yield Enhancement (6.5%) and the DST’s original Stated Rent plus Bonus Rent (4%).
Versity Invest, LLC is confident in its ability to fulfill its commitment to investors through available cash-on-hand, future revenue-generating activities, and other product offerings. Any outstanding performance of the property by the Master Tenant will offset the impact of the Yield Enhancement to the Sponsor.
The Yield Enhancement feature will take effect immediately and will be in place for a duration of 24 months. Versity Invest, LLC is excited to provide enhanced returns to Hayworth Tanglewood DST investors and seize the opportunities presented by the thriving Houston real estate market.
About Versity Invest
Offering Disclosure:
The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof (“Issuer”). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified. Past performance are no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.Securities offered through Wealthforge, LLC Member: FINRA/SIPC. Only available in states whereWealthforge, LLC is registered. Wealthforge is not affiliated with any other entities identified in this communication.
Real Estate Risk Disclosure:
- There is no guarantee that any strategy will be successful or achieve investment objectives including, among other things, profits, distributions, tax benefits, exit strategy, etc.;
- Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
- Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
- Potential for foreclosure – All financed real estate investments have potential for foreclosure;
- Illiquidity – These assets are commonly offered through private placement offerings and are illiquid securities. Private Placements are Speculative.
- There is no secondary market for these investments;
- Private placements carry a high degree of risk
- Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
- Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits;
- Stated tax benefits – Any stated tax benefits are not guaranteed and are subject to changes in the tax code. Speak to your tax professional prior to investing.
