Top1031

SOUTHERN STAR STORAGE III CAROLINA DST

Self-storage — sponsored by Southern Star Storage

Minimum investment
$100k
Offering size
$5.0M
How much has sold
None sold yet
Asset type
Self-storage
Location
Not stated
Financing
Leveraged. This offering reports mortgage debt on the property.

Sponsor-reported, from SEC filings and cited sources.

Chapter 1

What is this, in one paragraph?

Southern Star Storage III Carolina DST is a Delaware statutory trust — a structure that lets 1031 exchange investors hold fractional interests in real estate — formed to hold self-storage in North Carolina. An SEC-filed purchase agreement ties it to two facilities, in Havelock and Frisco.1 It filed one Form D in August 2022 and is closed to new investors.

Show sources (10)Hide sources (10)

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.

Chapter 2

What exactly is the property?

A 2023 equity interest purchase agreement filed with the SEC identifies the Carolina portfolio as two North Carolina self-storage facilities: Main Street Self Storage at 242 E. Main Street in Havelock, and Island Storage at 5340 NC-12 in Frisco.1 A September 2024 presentation from Silver Star Properties described the same trust as two properties totaling 43,383 square feet and 393 units.2 Acquisition date and price are not in the public record.

Chapter 3

Who is the tenant, and what's the lease?

Self-storage has no single tenant — income comes from many month-to-month unit rentals rather than one lease. Sponsor-branded pages now list Havelock and Island locations under the Southern Star Self Storage name, but they do not establish who owns, operates, or leases the buildings today.3

Chapter 4

How did it end?

What happened

No ending on record

Silver Star Properties REIT acquired the sponsor (Southern Star) on 2023-05-05 and suspended distributions to all Southern Star-sponsored DSTs on 2024-04-15; no disposition or 721 UPREIT exchange for this Carolina DST has been announced.

The DST-specific public page describes a Southern Star-sponsored offering formed to acquire and operate self-storage properties in the Southeastern U.S. and cites approximately $4.96 million sought, but it does not name an underlying property, city, address, property count, or physical size; a current Southern Star location page cannot be safely assigned to this trust, so addresses and photos are left empty.

Supporting evidence
Chapter 6

What does the paperwork say?

No amendment ever followed the original Form D, so the SEC file itself never reported a sale, a closing, or a change in terms. The Trust was offered under Rule 506(b), a private-placement exemption that bars general advertising and limits sales to accredited investors — people meeting SEC income or net-worth tests — the sponsor already knew.

  1. 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.

Chapter 7

Common questions

What happened to SOUTHERN STAR STORAGE III CAROLINA DST?

Top1031 lists SOUTHERN STAR STORAGE III CAROLINA DST as historical. It is no longer raising money.

Where does Top1031 get the data for SOUTHERN STAR STORAGE III CAROLINA DST?

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.

What does this Trust actually own?

An equity interest purchase agreement filed with the SEC in April 2023 identifies the Carolina portfolio as two North Carolina self-storage facilities: Main Street Self Storage at 242 E. Main Street in Havelock, and Island Storage at 5340 NC-12 in Frisco. A September 2024 Silver Star Properties presentation described the trust as two properties totaling 43,383 square feet and 393 units. The purchase price, acquisition date, and any mortgage debt are not disclosed in the public record.

Can I still invest in this DST?

No. Southern Star Storage III Carolina DST is Historical — closed to new investors. Its only SEC filing is a Form D from August 15, 2022, and Southern Star Storage has no offerings currently raising.

What happened to distributions?

On April 30, 2024, Silver Star Properties REIT published a statement saying monthly distributions to Southern Star-sponsored DSTs had been suspended effective April 15, 2024, pending an examination of Southern Star and its sponsored trusts. The release also discussed possible asset sales, dissolution of the respective trusts, and outsourcing operations. It did not name the Carolina DST individually, and no entity-specific outcome for this Trust has been reported in the public record.

What is a DST, and why does the 506(b) label matter?

A Delaware statutory trust holds title to real estate and issues beneficial interests that the IRS treats as direct property ownership, which is what allows them to receive 1031 exchange proceeds. Rule 506(b) is the private-placement exemption used here: the sponsor could not advertise the offering publicly and could sell only to accredited investors it already had a relationship with, which is why terms live in the private placement memorandum rather than in public filings.

What is still unknown about this Trust?

Quite a lot. The public record does not establish the acquisition price or date, whether the Trust used mortgage debt, the legal identity of the property operator, occupancy, whether the offering ever formally closed or raised capital beyond what the 2022 Form D showed, or whether the two North Carolina properties have since been sold.

Chapter 8

In the news