Minimum investment
$100k
Offering size
$50.4M
How much has sold
51.0%
Asset type
Small bay industrial
Location
Multi-state (2)
Financing
Leveraged. This offering reports mortgage debt on the property.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
NexPoint Small Bay III DST is a $50,382,493 Delaware statutory trust — a structure that lets 1031 exchangers own fractional real estate passively — holding two multi-tenant small-bay industrial parks, one in Richardson, Texas, and one in Deerfield Beach, Florida.1 It carries mortgage debt, is sold only to accredited investors — buyers meeting SEC income or net-worth tests — under Rule 506(c), and contemplates no 721/UPREIT conversion into REIT units.
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These links support the public record as a whole; 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?
Two multi-tenant small-bay industrial parks are offered here as one portfolio: Arapaho Business Park in the Dallas–Fort Worth market and the Deerfield Property in the Miami–Fort Lauderdale–West Palm Beach market.2 NexPoint's offering page states that all of the buildings underwent significant renovations in 2024–2025 and that two of the Deerfield buildings date from 2017.2 No street address has been published for the Florida asset, and no primary record of the acquisition date was located.
- Property address
- 1202 E Arapaho Rd, Richardson, TX
- Property size
- 509,914 total rentable SF: Arapaho Business Park 407,669 SF / 19 buildings / 31.55 acres (built 1976-1980, >90% occupied) + Deerfield Property 102,245 SF / 7 buildings / 8.25 acres (built 1987-1988)
- Total funding
- $91,382,493Investor money plus any loan.
- Property acquisition cost
- $86,671,730
Who is the tenant, and what's the lease?
No single tenant anchors this Trust, and no tenant is named anywhere in the public record. As of August 31, 2025, NexPoint reported Arapaho 92.1% occupied at $12.73 per square foot with a 1.50-year weighted-average lease term, and Deerfield 95.0% occupied at $15.96 with a 2.85-year term.2
How are sales going?
These are the sponsor’s own numbers. They can lag what has actually sold, and they do not confirm that interests are still available.
51.0% reported sold
- Amount sold
- $25,712,141
- Still available
- $24,670,352
- Investors reported
- 91
- Total offering
- $50,382,493
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How is it financed, and what does it pay?
Leveraged means mortgage debt sits alongside investor equity, and the lender is repaid ahead of beneficial owners in any sale or refinancing. Nothing amortizes on an interest-only structure, so the full balance falls due at maturity, met by a refinancing or a sale. No lender is named in the public record.
- Financing
- Leveraged. This offering reports mortgage debt on the property.
- Loan amount
- $41,000,000
- Interest rate
- 5.708% fixed
- Loan term
- Interest-only for full term
- Loan share of total funding
- 44.9%The loan measured against investor money plus the loan.
- Reserves held by the lender
- $6,467,631
Who's behind it?
Small Bay III is the third program in NexPoint's small-bay industrial DST series; trade press covering the launch reported that the three programs together cover more than 1.3 million square feet. The June 10, 2026 Form D/A names NexPoint Real Estate Advisors IV, L.P. as sponsor and NREA Small Bay III, LLC as manager and signatory trustee.3 A DST is passive by design: beneficial owners make no leasing, financing or operating decisions, and cannot force a sale.
- Sponsor
- NexPoint
- Legal Trust name
- NexPoint Small Bay III DST
- Property manager
- Basis Industrial
- Offering launched
- Oct 13, 2025
- May convert to a REIT
- No
- Offerings from this sponsor
- 6 active / 17 total offerings from NexPoint
Note from the sponsorRichardson address exact (Arapaho Business Park, zip 75081, confirmed via linkparks.com flyer and bayspace.com). Deerfield street address not published; zip 33073 and Basis Industrial management suggest possible match with BaySpace Crystal Pointe, 4500-4870 N Powerline Rd, but SF differs (96,888 vs 102,245) so left unconfirmed.
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
The Trust is offered under the SEC exemption that permits general advertising but requires the sponsor to verify each buyer's accredited status rather than accept a self-certification. The filings report a first sale on October 28, 2025, and every amendment since has done one thing: update the running tally of sales and investors.4
- First Form D filedThe public offering record begins.
- Offering amount recordedA Form D amendment recorded offering and sales totals.
- Filing record updatedA later amendment updated the sponsor’s filing record.
- Latest Form D filedThe most recent sponsor-filed checkpoint in this record.
- Filings on record
- 17
- How it may be offered
- Rule 506(c)May be advertised publicly. Every buyer’s accredited status must be verified.
- 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
Is Arapaho Business Park & Deerfield Property still raising money?
Top1031 lists Arapaho Business Park & Deerfield Property as active because the sponsor is still filing with the SEC. That does not confirm that interests remain available.
Where does Top1031 get the data for Arapaho Business Park & Deerfield Property?
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.
Is this offering still open, or fully subscribed?
The record points both ways. Top1031's pipeline data marks the $50,382,493 raise as fully subscribed, but the issuer's own Form D amendments — the latest dated August 25, 2026 — still report an unsold balance against that total, and no filing confirms a closing. Web research also found that a widely syndicated "fully subscribes" report referred to the earlier Small Bay II program, not this one. Confirm current availability with the sponsor before naming this Trust in a 45-day identification.
What does "small-bay industrial" mean for an investor here?
Small-bay parks are divided into modest units leased to many local businesses — contractors, service firms, distributors, light manufacturers — rather than to one large corporate tenant. Exposure is spread across dozens of leases, but those leases are short, turnover is routine, and results depend on the manager's ability to keep re-leasing space at the rents underwritten in the PPM, the private placement memorandum that governs the deal.
Who runs the properties day to day?
NexPoint identifies Basis Industrial as the property manager for the Small Bay III properties. The Trust itself is passive: a Delaware statutory trust cannot renegotiate leases or refinance debt, and beneficial owners make no operating decisions. The trust-level roles sit with NexPoint Real Estate Advisors IV, L.P. as sponsor and NREA Small Bay III, LLC as manager and signatory trustee, per the June 10, 2026 Form D/A.
Could this Trust convert into REIT shares?
No 721/UPREIT exit — the arrangement in which a DST's real estate is contributed to a REIT's operating partnership in exchange for units — appears in the record for this Trust. Read the exit section of the PPM directly; the path described there is an eventual sale of the real estate.
What is the minimum investment?
$100,000, and the Trust accepts both 1031 exchange proceeds and cash, according to the Form D filings and NexPoint's offering materials. Only accredited investors may participate, and because the offering uses Rule 506(c), the sponsor must independently verify accredited status rather than accept a self-certification.
Do we know exactly where the Florida property is?
Not precisely. NexPoint publishes only "Deerfield Beach, Florida" with a 33073 ZIP for that asset, and no street address appears in the public record. A nearby park run by the same operator carries a similar address, but its published square footage does not match the Trust's stated Deerfield square footage, so the parcel is unconfirmed. Treat the exact address as something to confirm in the PPM and title documents.
Chapter 9NexPoint Launches Small Bay III DST OfferingNexPoint announced the launch of NexPoint Small Bay III DST, a $50,382,493 Delaware statutory trust offering of two small bay industrial properties — the 102,245 sq ft Deerfield Property in Deerfield Beach, FL and the 407,669 sq ft, 19-building Arapaho Business Park in Richardson, TX. NexPoint Expands Industrial DST Portfolio With $50.4M Multi-State OfferingTrade-press coverage of the Small Bay III DST launch, noting the $100,000 minimum, partnership with Basis Industrial for property management, and that the offering brings NexPoint's DST industrial portfolio to over 1.3M sq ft across three programs.