Skyway Capital Markets today announced the successful closing and full subscription of the FG CommunitiesCandler Indian Creek DST, marking the first completed Delaware Statutory Trust offering through Skyway’s recently launched 1031 Exchange DST platform.
The offering raised approximately $6.04 million in equity in 56 days and was structured as an all-cash DST with no leverage. The investment targeted an average annual distribution of 5.75% over a projected five- to seven-year term.
The closing represents an important milestone for Skyway as the firm expands its alternative investment capabilities and builds a new business channel designed to provide financial professionals and accredited investors access to institutional-quality real estate opportunities structured for 1031 exchanges.
The property, Candler Indian Creek, is a 50-site manufactured housing community located at 12 Motley Road in Candler, North Carolina, approximately 10 miles west of downtown Asheville. The 8.14-acre community was 100% occupied at the time of the offering, with all homes tenant-owned, limiting the property’s responsibility for individual home maintenance.
The DST was sponsored by FG Communities Inc., a North Carolina-based real estate investment company focused on owning and operating manufactured housing communities. FG Communities has a growing portfolio of more than 3,500 homesites and brings operating experience across more than 85 communities.
The Candler Indian Creek investment was positioned around the continued demand for affordable housing in the Asheville region, where population growth and constrained housing supply have strengthened demand for more affordable options.
“This successful closing is an important first step in building Skyway’s DST platform and demonstrates the opportunity we see in this segment of the alternative investment market,” said Amy Arnold, Senior Managing Director and Head of Product Development at Skyway Capital Markets. “Our goal is to thoughtfully expand the platform by identifying sponsors and real estate opportunities that can provide financial professionals and their clients with additional options when evaluating 1031 exchange strategies.”
Manufactured housing has emerged as an increasingly attractive real estate sector, driven in part by the nationwide need for affordable housing and limited new supply. Manufactured housing communities also historically have low resident turnover, with industry data citing an annual turnover of approximately 5% to 10%, compared with 40% to 50% for apartments.
The FG Communities Candler Indian Creek DST is the first offering to close through Skyway’s 1031 Exchange DST platform. Skyway will continue evaluating additional DST opportunities as it expands the platform.
