Cunat Launches $56M DST for Its Own Illinois Apartment Community
Cunat Inc. has launched Cunat Exchange X DST, seeking $56.17 million in equity from accredited investors for a newly developed apartment community in McHenry, Illinois.
The offering, the firm’s 10th Delaware statutory trust, owns The Residence of Fox Meadows, a 540-unit property that Cunat developed and sold to the trust for $135 million.
Cunat will retain a 5% interest, bringing total equity to $59.125 million. The company has retained interests ranging from 5% to 20% in its previous DST offerings.
The 18-building community occupies approximately 37 acres and was 97.5% occupied as of Nov. 1. It is one of 15 Cunat properties in McHenry County, where the company is headquartered.
“We are not buying somebody else’s newly completed project and hoping its projections are accurate. McHenry County is our home market, and our underwriting is informed by decades of operating results from our own communities there,” said Brian Cunat, the company’s co-founder and CEO.
The property is financed with an $84.375 million loan carrying a fixed interest rate of 5.43%. The 10-year financing is interest-only and nonrecourse. The offering requires a minimum investment of $100,000.
Pictured: The Residence of Fox Meadow