Stonegate
Multifamily (Class A garden-style apartments) property in Birmingham, AL — sponsored by Passco Companies
Files with the SEC as Passco Stonegate DST
Minimum investment
$25k
Offering size
$17.6M
How much has sold
None sold yet
Asset type
Multifamily (Class A garden-style apartments) property
Location
Birmingham, AL
Financing
Not stated. The filings for this offering do not say whether it carries mortgage debt.
Sponsor-reported, from SEC filings and cited sources.
What is this, in one paragraph?
Passco Stonegate DST was a Delaware statutory trust — the structure that lets 1031 exchangers own fractional interests in real estate — formed to syndicate a Class A garden-style apartment community in Birmingham, Alabama.1 Passco Companies bought the 2007-built property from EBSCO Income Properties in July 2012.4 The Trust is closed to new investors; Top1031 reports the property sold for $34.1 million on July 27, 2018.6
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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?
Stonegate sits at 101 Leaf Lake Boulevard in Birmingham, built in 2007 on about 20 acres with one-, two-, and three-bedroom floor plans.3 Passco Companies acquired it from EBSCO Income Properties in July 2012, then a five-year-old Class A rental community.4 Reporting at closing put the property 92% leased.5 Top1031 reports the sale to Sunbelt Residential, a subsidiary of Sage Equities, closed July 27, 2018 at $34.1 million.6
- Reported location
- Birmingham, AL
- Property size
- 260 units; 294,652 square feet
Who is the tenant, and what's the lease?
An apartment community has no single tenant. The sponsor's offering summary instead describes a master tenant leasing the whole property from the trust and paying fixed rent plus percentage rent, so investor cash flow followed leasing and occupancy results rather than one corporate credit.3
How did it end?
Sold after 6.0 years; sponsor reported 1.45x
Listed as a completed/full-cycle program on Passco Companies's published track record.
The offering summary describes a 260-unit Class A garden-style apartment community built in 2007 on 20 acres with 294,652 total square feet and one-, two-, and three-bedroom units; Top1031 reports the DST property sold for $34.1 million on July 27, 2018 after a six-year hold. The disposition is not treated as evidence of full subscription or an offering close.
260 units; 294,652 square feet1.45×Equity multiple · as reported by the sponsor
6.4%Annualized return · as reported by the sponsor
$34,100,000Sale price · as reported by the sponsor
Supporting evidence
Who's behind it?
Passco Companies sponsored the Trust and has been a repeat multifamily DST sponsor. The 2012 Form D named Passco Capital, Inc. as the issuer's manager and Passco Stonegate Depositor, LLC as the depositor.2 For the completed deal, Top1031 reports Baker1031's sponsor-reported full-cycle figures for Stonegate as a 6.44% annualized return and a 1.45x equity multiple, described as net to investors and not audited.7
- Sponsor
- Passco Companies
- Legal Trust name
- Passco Stonegate DST
- May convert to a REIT
- No
- Offerings from this sponsor
- 4 active / 31 total offerings from Passco Companies
Reported by the sponsor. Top1031 does not independently audit sponsor-reported figures.
What does the paperwork say?
One document carries this Trust's entire public record: a single Form D notice of exempt offering, with no later amendment on file. It was offered under Rule 506(b), meaning private sales to accredited investors — people who meet SEC income or net-worth tests — without general advertising.
- Form D filedFirst and latest filing on record.
- Filings on record
- 1
- 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 Stonegate?
Top1031 lists Stonegate as historical. It is no longer raising money.
Where does Top1031 get the data for Stonegate?
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 Passco Stonegate DST?
No. The Trust is Historical — closed to new investors. Its only SEC filing is a Form D from July 10, 2012, and Top1031 reports the underlying Birmingham apartment community was sold on July 27, 2018.
What happened to the property?
Top1031 reports Passco Stonegate DST sold the Birmingham community on July 27, 2018 for $34.1 million, ending a roughly six-year hold. AL.com reported the buyer as Sunbelt Residential, a subsidiary of Sage Equities.
Is there a reported outcome for investors?
Top1031 reports Baker1031's sponsor-reported full-cycle results for Stonegate as a 6.44% annualized return and a 1.45x equity multiple, described as net to investors and not audited. No audited or independently verified result was located in public records.
What was the minimum investment?
The 2012 Form D reported a $25,000 minimum investment. Interests were sold only to accredited investors under Rule 506(b), which prohibits general solicitation or advertising of the offering.
Who managed the apartments day to day?
The sponsor's offering summary describes a master tenant structure: the master tenant leased the property from the Delaware statutory trust and was responsible for operations and leasing, paying the trust fixed rent plus percentage rent.
Why does the public record show so little about the debt?
A Form D reports only offering-level information. Nothing located in public filings establishes the acquisition price, loan amount, lender, interest rate, loan-to-value, or maturity for this Trust — those terms lived in the PPM and loan documents.
Chapter 8Passco Stonegate DST sold its Birmingham apartment community in July 2018Top1031 coverage of this eventAL.com reports Sunbelt Residential, a Sage Equities subsidiary, purchased the 260-unit Stonegate community off Lakeshore Parkway for $34.1 million. Passco Acquires Luxury Alabama Apartment CommunityMulti-Housing News reports Passco acquired Stonegate, a 260-unit luxury apartment community in Birmingham, from EBSCO Income Properties.