Full cycle

JLLX San Marcos, DST Went Full Cycle in a Section 721 Roll 2.7 Years After Its First Form D

Holders of the Delaware Statutory Trust (DST) exchanged their interests for operating-partnership units, and no disposition value for the property is on the public record.

Published Updated

JLLX San Marcos, DST reached full cycle on April 11, 2023, when its property was contributed to a REIT in a Section 721 UPREIT roll. The Trust filed its first Form D on July 22, 2020. Those two dates put the hold at 2.7 years.

The Trust produced an annualized return of 35%, as reported by the sponsor in its announcement of the completed full-cycle transactions. No method of calculation accompanies that figure, and there is no statement of whether it is net of fees or load. No equity multiple or total return is on the record for the Trust, and no per-unit valuation for the units holders received.

The offering as filed


Trust

JLLX San Marcos, DST

Sponsor

JLL Exchange (JLLX)

Asset class

Other Real Estate

Offering ceiling

$38,798,691

Minimum investment

$500,000

Exemption

506(b)

The Form D names no property and sets out no distribution terms; those were carried by the private placement memorandum, which is not a public document.

What the record establishes is the exemption, the size of the offering as filed, the dates, and the form of the exit. It does not establish what the operating-partnership units were worth on the day of the roll, or what holders have done with them since.