FSC Diversified 2 - DST
Net lease property in Missouri, IN · sponsored by Four Springs (FSX)
FSC Diversified 2 - DST was a DST sponsored by Four Springs (FSX) that owned a net lease property in Missouri, IN. Its last Form D, filed Jul 20, 2022, reports the offering fully sold.
How it ended
No outcome recorded · under 7 years
The last Form D, filed Jul 20, 2022, reports the offering fully sold.
Key facts
- Minimum investment
- $63,000From the Form D
- Offering size
- $15,105,000Equity offered, per the Form D
- Sold
- 100%Form D, Jul 20, 2022; the % is our arithmetic
- Selling commissions
- Not in the Form DForm D Item 15
- Financing
- All cash. This offering reports no mortgage debt.How it is financed ↓
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →
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Ask a 1031 specialist about this recordFree. About: FSC Diversified 2 - DST. Top1031 is not a broker-dealer.No photo on record. Historical records carry no map.
What did FSC Diversified 2 - DST own?
The Trust's holdings span three sectors and three states: an industrial building occupied by Mercury Communications in Villa Ridge, Missouri, a medical property in Indianapolis, and an early-childhood-education facility in Hershey, Pennsylvania.1 Four Springs assembled them as one diversified three-property portfolio rather than a single-tenant deal.2 Street addresses, building sizes and acquisition prices do not appear in the public record.
- Reported location
- Missouri, IN
Tenant and lease terms are not in the SEC filings or cited sources.
How was it financed, and what did it cost to sell?
The sponsor described this as an all-cash, debt-free Delaware statutory trust: no mortgage sits on the three properties, so there is no loan maturity to refinance and no replacement debt for an exchanger who is retiring a mortgage on the property they sold.2
Debt
- Financing
- All cash. This offering reports no mortgage debt.
- May convert to a REIT (721)
- Not stated in the public record
Costs and terms from the Form D
- Selling commissions
- Not in the Form D
- Finders’ fees
- Not in the Form D
- Recipients of sales compensation
- 1 named in the Form D
Show the names
- Third Seven Capital LLC
- Date of first sale
- May 13, 2022
- Minimum investment
- $63,000
Form D Item 15 amounts may be the issuer’s estimates; the percentage is Top1031’s arithmetic on two Form D figures.
Who's behind FSC Diversified 2 - DST?
Four Springs Ten31 Xchange is Four Springs' DST platform for 1031 exchange investors, built around net-leased commercial property. The Form D names Four Springs Ten31 Xchange LLC as a promoter and FSC Diversified 2 Sponsor LLC as the Trust's depositor and an executive officer.3 As of the platform page reviewed for this profile, Four Springs still lists this Trust among its replacement properties and does not state that the buildings have been sold.1
- Sponsor
- Offerings on record
- 2 active / 11 total
What does the SEC record show?
Four Springs filed a Form D — the short SEC notice used for a private placement — days after the first sale, then amended it once to update the sales figures and to lower the stated minimum investment from $250,000 to $63,000. The Trust was offered under Rule 506(b), privately and without general advertising, to accredited investors.
- Legal Trust name
- FSC Diversified 2 DST
- SEC CIK
- 1927330
- First Form D
- May 16, 2022
- Latest Form D
- Jul 20, 2022
- Filings on record
- 2
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
- Source filing
- First Form D filedThe public offering record begins.
- Last Form D filedThe most recent sponsor-filed checkpoint in this record.
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Common questions
- What happened to FSC Diversified 2 - DST?
- FSC Diversified 2 - DST is a Historical offering. The last Form D, filed Jul 20, 2022, reports the offering fully sold.
- What does the Trust actually own?
- Three net-leased buildings in three states: an industrial property occupied by Mercury Communications in Villa Ridge, Missouri (described as St. Louis in 2022 coverage), a medical property in Indianapolis leased to Optum Health, and an early-childhood-education facility in Hershey, Pennsylvania leased to KinderCare. Street addresses and building sizes are not in the public record.
- Is there a mortgage on the properties?
- No. Four Springs described the Trust as an all-cash, debt-free offering, so the three properties carry no acquisition financing. For an exchanger, that means no loan maturity or lender approvals to worry about, but also no replacement debt to offset a mortgage paid off on the relinquished property.
- Is there a 721/UPREIT exit planned?
- Nothing in the public record says so. A 721 or UPREIT exit is a structure where DST investors eventually contribute their property interest to a REIT in exchange for operating-partnership units instead of receiving cash. The filings and sponsor materials reviewed here do not state that this Trust may convert to a REIT.
- Has the Trust reported a sale or other outcome?
- No outcome has been reported. The SEC record for this entity shows only the May 16, 2022 Form D and the July 20, 2022 amendment, with no later entity-specific filing, and the sponsor's platform page still lists the Trust without saying the properties were sold. Distributions and any disposition results are not public.
- Why did the minimum investment change between the two filings?
- Form D asks the issuer to report the minimum outside-investor investment accepted. The initial May 2022 filing showed $250,000; the July 2022 amendment showed $63,000, which reflects the smallest interest actually accepted as the raise filled out. The governing terms are in the private placement memorandum (PPM), the offering's full disclosure document.
In the news
Sources
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DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current Private Placement Memorandum before investing.