Origin Investments Fully Subscribes Inaugural DST, Raising Nearly $40M
Origin Investments’ first Delaware statutory trust acquisition, Origin Starling DST, which owns a 300-unit Class A multifamily community in suburban Dallas, is now fully subscribed. The Starling attracted nearly $40 million in investments and more than 40 investors who elected to use a 1031 exchange to step out of an actively managed investment vehicle.
Alts Wire previously wrote about the DST’s launch in September 2024.
“The ability to reach fully subscribed status in a relatively short period of time proves our product development and investment thesis,” said David Scherer, co-chief executive officer, Origin Investments. “Investors want better options for 1031 exchanges – products that combine lower fee structures and high-quality property offerings that over the long term have the potential to protect and grow wealth.”
Completed in 2022, The Starling consists of 11 three-story, garden-style Class A residential buildings on a 12-acre site in Princeton, Texas, on the path of progress as Dallas continues its northeast expansion. The property’s 300 residences consist of studio units averaging 622 square feet, one-bedroom units averaging 735 square feet, two-bedroom units averaging 1,078 square feet, and three-bedroom units averaging 1,339 square feet. The community features 30 detached garages, 56 carports, and 454 surface parking spaces.
Community amenities include a resort-style pool, grill, clubhouse, kitchen and dining area, two private business offices and conference room, entertainment and game areas, and a dog park.
Princeton is 50 minutes from downtown Dallas, and The Starling is well-positioned off East Princeton Drive (U.S. 380) and Interstate 75 – major transportation routes to McKinney, Frisco, Allen and Plano. Princeton is also within 15 minutes of Baylor Scott White McKinney Hospital and Medical City McKinney, two major hospital employers.
“This was a prototypical Origin investment opportunity, in keeping with the caliber of assets we’ve invested in for years,” said Phil Schuholz, vice president of acquisitions, Origin Investments. “When using the benchmark of replacement cost, we were able to acquire The Starling below current replacement costs and at an even further discount from 2023. We’re excited about the future of this asset.”
The Starling is approximately 92% occupied with average in-place rent of $1,542. Strong rent growth in the near and long term is projected, according to Origin Investments. According to Origin’s Multilytics, by January 2026, rent growth in Dallas is projected to be 4.2%.
Origin introduced Origin Exchange in June 2024 to create financial solutions that help its investment partners grow and protect their wealth. The firm’s goal is to upend the 1031 exchange market by significantly reducing traditionally sky-high fees, offering high-quality investments, and simplifying the lives of investors who no longer want to actively manage real estate.
Through the Origin Exchange program’s DST structure, qualified 1031 exchange investors may receive benefits including the indefinite deferral of federal capital gains taxes, the potential for passive income and depreciation deductions, and simplified estate planning. Positions in Origin’s DST offerings are available starting at $250,000.
Last week, Origin Investments completed its second acquisition as part of its Origin Exchange DST program. The company acquired Queens Wedgewood-Houston, i.e., Queens WeHo, a 221-unit Class A multifamily community in the heart of downtown Nashville’s Wedgewood-Houston neighborhood for $79.4 million earlier this month. In total, Queens WeHo is a $44.5 million offering.
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