Company News
Kingsbarn Realty Capital Purchases a 524-Unit Apartment Community in Mankato, Minnesota
Las Vegas, Nevada, June 8, 2021 – Kingsbarn Realty Capital (“Company” or “Kingsbarn”) announced the acquisition of the Live Active apartment community in Mankato, Minnesota ("Property"). The Property is a 26-building, 524-unit, multifamily property situated on over 31 acres. The Property will be offered as a Delaware Statutory Trust (“DST”) investment by KB Exchange Trust, an affiliate of Kingsbarn, in early Fall, 2021.
"This purchase is an example of an opportunistic acquisition in which we were able to buy the asset at a significant discount due to the short-term market trepidation caused by the COVID-19 pandemic," said Jeff Pori, CEO of Kingsbarn Realty Capital. "We like that this community is over 95% occupied and has a long history of performing at or above the surrounding submarkets."
Although Live Active Apartments are typically 70%-80% occupied by students, the community is leased and operated as a traditional apartment community with 12-month leases and is rented by the unit rather than by the bed. Live Active Apartment Community is located within walking distance to Minnesota State University, the second-largest public university in Minnesota. The campus boasts that 80% of its student population lives off-campus, creating an inherent demand for this unique asset. In addition, the Property is proximate to over 900 acres of parks and recreational areas as well as amenity-rich neighborhoods which provide a great quality of life for Live Active's residents.
The Company will offer the investment interests in the Property as beneficial interests in a Delaware Statutory Trust ("DST"). The DST investment structure provides investors with fractional ownership in higher-quality properties as a simplified 1031 exchange solution. It is also very useful in helping investors diversify their real estate portfolios in a much easier fashion than attempting to purchase multiple properties on their own.
About Kingsbarn Realty Capital
Kingsbarn Realty Capital is a real estate private equity and development firm based in Las Vegas, Nevada. Kingsbarn structures its real estate investment opportunities for both fractional 1031 investors as well as providing customized portfolio solutions for large-scale investors. Kingsbarns’ management team has wide-ranging experience developing, managing, operating, and sponsoring a diversified portfolio of stabilized, income-driven properties. Kingsbarn has acquired and currently operates over $500 million of commercial real estate throughout the United States. In 2020, Kingsbarn Capital and Development was founded as the company’s development arm to expand its product offerings for investors to include ground-up development of real estate assets and to fund operating companies who require real estate solutions across the United States.
No Offer
This is not an offer. An offer will only be made pursuant to the delivery of the required offering documents, including the private placement memorandum, as supplemented or amended (the “Memorandum”) and only in states in which the securities offered pursuant to the Memorandum are registered or exempt from registration requirements, and only by broker-dealers authorized to do so. This information discusses general information about the portfolio and is not a guarantee, prediction or projection of future performance. Diversification does not protect against loss or guarantee return. There are risks associated with investing in real estate assets, such as inflation, interest rates, real estate tax rates, changes in the general economic climate, local conditions such as population trends and neighborhood values, and supply and demand for similar property types. Investing in DSTs and 1031 exchanges involves significant tax consequences. Please refer to the Memorandum for detailed information about the offering and its associated risks and implications.
Forward-Looking Statements
This press release may contain forward-looking statements identified by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. Kingsbarn assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.