NewStar Exchange Acquires Newly Constructed Built-to-Rent ("BTR") Community in Suburban Atlanta and Launches New 1031 Delaware Statutory Trust Offering

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Sep 13, 2023, 16:16 ET

ATLANTA, Sept. 13, 2023 /PRNewswire/ -- NewStar Exchange, a subsidiary of NewStar Asset Management, announced today its acquisition of Tranquil Gardens, a single-family rental subdivision located in the Woodstock suburb of Atlanta, Georgia.

The property is 95% leased and features 73 newly constructed 3- and 4-bedroom detached and townhome plans with 2-car garages, luxury vinyl tile floors, granite countertops, stainless steel appliances and fenced-in backyards. NewStar Exchange acquired the property on behalf of NewStar 6 Tranquil Gardens BTR, DST.

"We are excited to announce our sixth investment since launching NewStar Asset Management in 2021, and our third investment by NewStar Exchange," said Boone DuPree, Chief Executive Officer for NewStar. "Tranquil Gardens is a Class A build-to-rent community squarely aligned with NewStar's investment thesis for providing attainable, high-quality housing to serve the growing Millennial family formation and Baby Boomer retirement demographic categories. The homes at Tranquil Gardens are nearly 100% larger than traditional apartments and feature two-car garages, fenced-in backyards, and separate living spaces conducive to family lifestyle."

"In-place rents at the property offer a 24% discount to the monthly payment required to own the median priced home listed for sale in the surrounding Woodstock submarket," added Joe Gibson, NewStar's Chief Investment Officer. "The market demand for this housing product and price point is evidenced by Tranquil Gardens achieving 95% occupancy within 5 months of its completion. We look forward to continuing to develop and acquire single-family rental communities like Tranquil Gardens across the Southeast."

NewStar 6 Tranquil Gardens BTR, DST is financed with a first mortgage through Freddie Mac, offering 40% leverage to DST investors on the offering's syndicated basis, and seeks to raise approximately $19 million in equity from accredited investors. The minimum investment is $100,000 for 1031 investors and $25,000 for cash investors. The offering is being distributed by Preferred Capital Securities.

About NewStar Exchange: NewStar Exchange is subsidiary of NewStar Asset Management that invests in and manages Class A single-family built-to-rent residential communities in growing suburban locations across the United States "Sun Belt". The Company invests through Delaware Statutory Trusts which it sponsors, and brings to market high-quality assets vetted by a rigorous due diligence process that has been developed and refined over decades of institutional real estate experience. For more information visit https://www.newstar-am.com/retail-capital-strategies.

About Preferred Capital Securities ("PCS"): PCS (Member FINRA/SIPC) is a fully independent, third-party Managing Broker Dealer focused on both back-office solutions and the wholesale distribution of alternative investments to Independent Broker-Dealers (IBDs) and Registered Investment Advisors (RIAs) across the United States and Puerto Rico. PCS is currently the Managing Broker Dealer of NewStar Exchange, the Preferred Stock offering for Preferred Apartment Communities, "PAC", the Preferred Stock offering for Prospect Capital Management, The Priority Income Fund, and WhiteHawk Minerals. With a track record that empowers their partners to embark with confidence, PCS is proud to have raised over $3 Billion in retail capital across 8 offerings which have issued approximately $1 Billion in liquidity for its investors since the firm's inception in 2011. To learn more about PCS please visit www.pcsalts.com.

Contact: [email protected]

SOURCE NewStar Asset Management