Groma launches third Delaware Statutory Trust (DST) for 1031 investors

GromaCorp, Inc. (Groma), a tech-driven real estate investment firm based in Boston, is launching its third Delaware Statutory Trust (DST) program. DSTs are a trust structure that enables investors to pool the proceeds of the sale of real estate assets, including 1031 exchanges, with those of other investors to be invested in new assets managed by a third party. Groma III DST is focused on small-unit-count multifamily properties in the Boston area, leveraging Groma’s platform to efficiently acquire, modernize and operate these properties.

Groma’s DST III is a 506(c) offering designed to provide an opportunity for accredited investors with 1031 proceeds to maintain, or gain, exposure to Boston-area multifamily real estate without needing to acquire and manage new properties themselves. DST III has acquired a portfolio of four contiguous, stabilized multifamily properties in the Charlestown neighborhood of Boston, and will accept investments as low as $50k up to a maximum of $3.4M.

The properties in Groma III DST are 19-21, 23, 25 and 27 Caldwell Street, Boston MA 02129 and comprise 10 multifamily units. Charlestown is one of the most sought-after residential neighborhoods in Greater Boston. The four buildings are located only steps away from the Sullivan Square T Station, which provides direct access to TD Garden, the North End, and the financial district. The properties boast a 90 walk score, with easy access to a Whole Foods and numerous popular restaurants and bars like the Monument Tavern and Waverly Kitchen. Each residential unit was either built or newly renovated in the past 10 years, with stone countertops, hardwood floors, luxury tile bathrooms, and spacious open concept kitchen/living areas. The portfolio is currently 100% occupied, validating strong demand in the area.

Groma’s launch of DST III has been informed by its track record in previous DST offerings, DST I and DST II, both of which acquired small multifamily properties in the Mission Hill, Fort Hill, and Roxbury neighborhoods of Boston. Those properties have maintained an average of 97%+ occupancy with market rents hitting or exceeding initial targets.

“DSTs are a great tool for investors with 1031 proceeds who want to maintain exposure to real estate, while deferring tax burden. This portfolio is exactly the kind of stable, durable asset that we target for our DST programs.”, said Christina Dorobek, Groma’s Head of Investor Strategies. “We’re also thrilled to be expanding into Charlestown, an iconic Boston neighborhood that has been a favorite of young urban professionals for decades.”

For more information on Groma’s DST offering, you can reach out to investor-relations@groma.com to request a summary deck and a private placement memorandum, which details the full risks, potential benefits and other key considerations for those evaluating Groma III DST. You can also learn more at www.groma.com/partner.