IREI Article

Walton Global, a global real estate investment and land asset management company, has announced the continuation of their DST growth strategy in 2024, with their newest land product being a property outside of Charlotte, North Carolina. Walton anticipates the launch of 5-7 similar programs in 2024.

Launched in March of 2023, Walton’s strategy for its DST offerings focuses on all-equity growth opportunities targeting potentially higher investor returns than traditional DSTs, along with hold periods that are not artificially lengthened due to repayment restrictions applicable to most traditionally financed alternatives. This strategy creates new opportunities for financial advisors to further diversify their clients’ DST portfolios, including an aspect of “growth.”

“2023 was a year of educating the marketplace on DST growth products, and in 2024, it is time to supply the demand,” said Todd Woodhead, SVP of Capital Markets at Walton Global. “There has been an appetite for an all-growth strategy as a diversification tool in the DST market, and we’re excited to provide a solution to our partners and their clients with our growing pipeline of assets.”

Walton Global successfully raised capital for two DST offerings in 2023, which included the closing of its first retail DST called Georgia Growth 1 DST, a land-based offering consisting of 103 acres of residential land already approved for the development of 206 single-family homes. The investment property was strategically situated near a strong builder presence to meet the housing demand for the region.

Typically, an investment in a DST involves transferring proceeds from the sale of an investment property to another developed investment property, such as commercial buildings or multifamily units, that provide the potential for some income but minimal growth. Walton is leveraging its decades of experience in land acquisition and its strategic partnerships with the top U.S. homebuilders to meet the growing demand of DST investors by acquiring small infill land assets structured as all-equity, with a focus on growth for the investor. Walton has transacted with more than half of the top 20 home builders in the U.S. and continues to grow its relationships. These strong relationships with top national and regional homebuilders allow them to strive to select the right land buyer to provide the potential for optimal returns for investors.

Offering Disclosure

The contents of this communication: (i) do not constitute an offer of securities or a solicitation of an offer to buy securities, (ii) offers can be made only by the confidential Private Placement Memorandum (the “PPM”) which is available upon request, (iii) do not and cannot replace the PPM and is qualified in its entirety by the PPM, and (iv) may not be relied upon in making an investment decision related to any investment offering by an issuer, or any affiliate, or partner thereof (“Issuer”). All potential investors must read the PPM and no person may invest without acknowledging receipt and complete review of the PPM. With respect to any “targeted” goals and performance levels outlined herein, these do not constitute a promise of performance, nor is there any assurance that the investment objectives of any program will be attained. All investments carry the risk of loss of some or all of the principal invested. These “targeted” factors are based upon reasonable assumptions more fully outlined in the Offering Documents/ PPM for the respective offering. Consult the PPM for investment conditions, risk factors, minimum requirements, fees and expenses and other pertinent information with respect to any investment. These investment opportunities have not been registered under the Securities Act of 1933 and are being offered pursuant to an exemption therefrom and from applicable state securities laws. All offerings are intended only for accredited investors unless otherwise specified. Past performance is no guarantee of future results. All information is subject to change. You should always consult a tax professional prior to investing. Investment offerings and investment decisions may only be made on the basis of a confidential private placement memorandum issued by Issuer, or one of its partner/issuers. Issuer does not warrant the accuracy or completeness of the information contained herein. Thank you for your cooperation.

Securities are/will be offered through Walton RE Securities, LLC, registered broker dealer of record, member of FINRA (www.finra.org), member of SIPC (www.sipc.org).

Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication. 

1031 Risk Disclosure: 

• There is no guarantee that any strategy will be successful or achieve investment objectives. 
• Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments. 
• Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities. 
• Potential for foreclosure – All financed real estate investments have potential for foreclosure. 
• Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments. 
• Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions. 
• Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits.