Full cycle

NB Sawmill TIC 2 Reached Full Cycle When Its Flagstaff Student Housing Property Sold in May 2022

The offering was syndicated as a tenant-in-common program rather than a Delaware Statutory Trust (DST), and the firm that reported the sale is named differently from the sponsor of record.

Published Updated

NB Sawmill TIC 2, LLC reached full cycle when The Commons at Sawmill, the student housing property it owned at 901 South O'Leary Street in Flagstaff, Arizona, sold. The Versity full-cycle track record dates that sale to May 2022. The buyers, Coastal Ridge Real Estate and Goldman Sachs Asset Management, announced the closing of the 448-bed community on June 1, 2022, describing a property within walking distance of Northern Arizona University with a clubhouse, fitness center, theater and study lounge, to be managed by Coastal Ridge. That release names neither the seller nor the price.

Two names attach to the sell side. The track record reporting the sale is Versity's; the Form D on file names Nelson Brothers as the sponsor of the offering. The documents do not explain the relationship between the two.

Item

Record

Offering

NB Sawmill TIC 2, LLC (CIK 1682259)

Sponsor

Nelson Brothers

Asset class as tracked

Other Real Estate

Exemption claimed

Rule 506(b)

Offering ceiling

$15,862,474

Minimum investment

$25,000

First Form D filed

December 16, 2016

Exit type

Property sold

Hold period

5.5 years, December 16, 2016 (first Form D) to June 1, 2022 (announced closing)

The Versity track record is the only place in the record that carries a sale price for the property together with a total return and an annualized internal rate of return for the program. Top1031 could not match that summary to a published document, and for that reason none of those figures appear here. The same summary describes a 5.8-year hold, longer than the span between the first Form D and the announced closing. No document in the record states when the property was acquired.

The structure matters to how the exit reached investors. This was a tenant-in-common program, a co-ownership form the 1031 market uses alongside the DST, in which each investor holds a direct deeded interest in the property rather than a beneficial interest in a trust, and each co-owner's share of the sale runs to that investor directly.

What the public record does not show is the outcome for those co-owners. Nothing in it breaks out distributions, the split between operating income and sale proceeds, the amount of equity actually sold against the ceiling, or a per-unit result for an investor who came in at the minimum. This is the first full cycle Top1031 records for Nelson Brothers.