Kay Properties & Investments brought custom DST offerings full cycle on behalf of multiple 1031 exchange and cash investors

Chicago, IL Kay Properties & Investments, a nationally recognized Delaware Statutory Trust 1031 Exchange investment firm, successfully brought one of its custom Kay Properties DST offerings full cycle on behalf of multiple 1031 exchange and cash investors.

“Full Cycle” is the name used to describe a Delaware Statutory Trust property that is purchased and then sold on behalf of a group of accredited investors after a period of time.

According to Dwight Kay, founder and CEO of Kay Properties & Investments, the property, Airport Distribution 21 DST, sold on behalf of a group of DST accredited investors who, for those investors that closed simultaneously on the DST investment the same day that the property was purchased, realized a 121.08% total return on their investments, or a 12.37% annualized return from their DST 1031 investment*.

“The property was offered to investors as an all-cash/debt-free investment in order to create a lower-risk profile for both 1031 Exchange and direct cash investors. We are very pleased to have provided another successful custom DST investment opportunity for our clients that resulted in a full-cycle liquidity event,” said Kay. 

In addition, Kay noted that Kay Properties was able to provide its investors uninterrupted monthly distributions throughout the hold period and during the entire COVID-19 pandemic, a significant accomplishment considering the challenges that many real estate operators experienced with tenants and rent collections during the pandemic.

“While past performance does not guarantee or indicate the likelihood of future results, this particular DST investment is a solid example of how Kay Properties clients have access to Custom DST offerings that are only available to investors working with Kay Properties. It was made available to Kay Properties clients on kpi1031.com as a Custom all-cash/debt-free DST and successfully sold for an attractive total return for our investors. The positive return marks a significant victory for our investors and another successful outcome for the entire Kay Properties team during this record-breaking year*,” said Kay. 

Kay explained that this custom logistics DST asset consisted of a 36,395 square foot distribution facility located in the Elk Grove Village submarket of greater Chicago. The facility had been consistently occupied by an investment grade tenant for many years, and was located just eight miles from the O’Hare International Airport in the heart of one of the nation’s most active logistics centers. 

“Our investment team identified this logistics facility as a potentially high-quality asset that was in high demand and located in a dense urban area. Furthermore, the booming e-commerce industry and a stable investment-grade tenant created what we believed to be a favorable investment scenario,” said Kay. 

Chay Lapin, president and DST specialist with Kay Properties & Investments, explained that because there is a limited supply of quality logistics facilities currently available across the country, the combination of a solid location and a high-quality logistics and distribution tenant made the Airport Distribution 21 DST a particularly attractive investment for Kay Properties. 

“We originally acquired the property because we saw there was a great opportunity for a logistics facility that was 100% occupied by a Fortune 500 distribution tenant. Like all of our Delaware Statutory Trust investments found on www.kpi1031.com, this DST was carefully vetted by the Kay Properties team of due diligence and analytics experts before we made it available as a custom DST to our Kay Properties investment family. Although the past performance of any investment doesn’t ever guarantee future results or returns, the offering’s monthly distributions performed exactly as we had anticipated in the Private Placement Memorandum (PPM)*,” said Lapin. 

* Past performance does not guarantee or indicate the likelihood of future results. 

* No representation is made that any DST investment will or is likely to achieve profits or losses similar to those achieved in the past or that losses will not be incurred on future offerings.