FSC Diversified 2 - DST (Mercury Communications / Optum / KinderCare)
Net lease property in Missouri, IN — sponsored by Four Springs (FSX)
Files with the SEC as FSC Diversified 2 DST
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
FSC Diversified 2 DST is a Delaware statutory trust — a structure that lets 1031 exchangers hold fractional interests in real estate as replacement property — sponsored by Four Springs. It holds three net-leased buildings occupied by Mercury Communications, Optum, and KinderCare in Missouri, Indiana, and Pennsylvania.1 Blue Vault reported the offering fully subscribed in July 2022, and it is closed to new investors.2
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These links support the historical public record; individual details may come from different sources.
On a 45-day clock? Find day 45 and day 180 from the sale date, then come back to this record.
What exactly is the property?
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
Who is the tenant, and what's the lease?
Mercury Communications, Optum Health — described as a UnitedHealthcare subsidiary — and KinderCare each occupy one building under what the sponsor describes as long-term net leases, meaning the tenant rather than the Trust carries most operating costs.2 Individual lease expiration dates and escalators were not found in public filings.
How did it end?
No sale or other ending on record
JRW Investments' Four Springs sponsor page lists 'Diversified Net Lease 2' (the FSC Diversified 2 DST Mercury Communications/Optum/KinderCare portfolio) as 'Active' with an investment date of May 1, 2022, and no full-cycle press release naming this trust has been located (JRW; BlueVault subscription notice).
Four Springs' public homepage lists FSC Diversified 2 - DST with Mercury Communications, Optum, and KinderCare in Villa Ridge, Missouri; Indianapolis, Indiana; and Hershey, Pennsylvania, and shows $15.1 million. No street addresses, property sizes, exact-property images, dated articles, or subscription announcement were found.
How is it financed, and what does it pay?
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
Who's behind it?
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
- Four Springs (FSX)
- Legal Trust name
- FSC Diversified 2 DST
- May convert to a REIT
- No
- Offerings from this sponsor
- 2 active / 10 total offerings from Four Springs (FSX)
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
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.
- First Form D filedThe public offering record begins.
- Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
- Filings on record
- 2
- How it may be offered
- Rule 506(b)Not advertised publicly. Offered through existing relationships.
- Source filing
- Read the filings on SEC EDGAR
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.
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.
Common questions
What happened to FSC Diversified 2 - DST (Mercury Communications / Optum / KinderCare)?
Top1031 lists FSC Diversified 2 - DST (Mercury Communications / Optum / KinderCare) as historical. It is no longer raising money.
Where does Top1031 get the data for FSC Diversified 2 - DST (Mercury Communications / Optum / KinderCare)?
Top1031 builds this record from the sponsor’s own SEC filings and cited sponsor disclosures. Filings can lag what is happening now. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Can I still invest in FSC Diversified 2 DST?
No. The Trust is Historical — closed to new investors. Blue Vault reported on July 14, 2022 that Four Springs Capital Markets had fully subscribed the offering, and the sponsor filed its final Form D amendment on July 20, 2022. Four Springs has two other offerings raising capital as of this record's data.
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.