NexPoint launched the NexPoint Small Bay II DST, a Delaware statutory trust (“DST”) offering comprised of two Small Bay industrial properties in the Orlando-Kissimmee-Sanford metropolitan statistical area (“MSA”).

The offering, sized at just under $39 million, adds 378,929 square feet of multi-tenant warehousing and industrial space to NexPoint’s portfolio.

The two properties in the DST offering include:

• The Lakefront Property which starts at 6101 Chancellor Drive in Orlando, and
• BaySpace Belle is located at 1200-1270 Belle Avenue, Winter Springs, and offers 192,767 square feet of flex and multi-tenant industrial space.

With this offering, NexPoint expands its footprint in Central Florida and the light industrial sector, often referred to as “Small Bay.” The launch follows NexPoint Small Bay I DST, a now-closed offering that raised $59.5 million.

NexPoint Residential Trust closed on the sale of Old Farm in Houston, a 734-unit property built in 1996. The property was acquired for $84.7 million in 2016. As of March 1, 2024, the property was 91.41% leased with a weighted average effective monthly rent of approximately $1,307.

Net proceeds from the sale were approximately $49.4 million, delivering a trailing nominal tax and insurance adjusted cap rate of 5.36%, a 22.14% levered internal rate of return and a 2.98x multiple on invested capital. The Company will use a portion of the net proceeds from the sale to make a $24 million paydown on the Company’s corporate credit facility, continuing the Company’s strategic de-leveraging and balance sheet improvement initiatives.

“NXRT is pleased to announce the closing of Old Farm, which allows us to deliver a strong return on a 7-year investment, creates almost $50 million of liquidity for the Company and pays off our most expensive debt capital, a long-stated goal,” said the company’s Matt McGraner.