DI Wire Article

Charlotte Business Journal Article

Walton Global, a global real estate investment and land asset management company, announced the launch of its North Carolina Growth 1 Delaware Statutory Trust (DST) focused on land-based investments. The offering, known as the Springhaven Master Plan, is located in Gastonia, Gaston County and includes approximately 72 acres of residential land that has been pre-approved for 103 single-family lots, allowing for swift development. 

Originally 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 unnecessarily extended, unlike other options that often have longer hold times due to repayment limits. The North Carolina Growth 1 DST exit strategy is targeted to be 3-to 5-years and offers new opportunities for financial professionals to further diversify their clients’ DST portfolios, by including an aspect of “growth.” 

The Springhaven Master Plan was strategically selected to boost residential inventory to meet the housing demand in the region and support the sharp increase in population. Located near Beaty Road and Beacon Hills Drive, the parcel of land provides the convenience of being 25 minutes to Charlotte Douglas International Airport, 30 minutes to Charlotte and 15 minutes from the City of Gastonia. Residents of this new community will also benefit from proximity to themore than 30 international companies in Gaston County, several schooling options, medical centers and many other recreational and entertainment offerings.

“We’re thrilled to be continuing our DST growth strategy in 2024 with the newest land product outside of Charlotte, North Carolina, a region we’ve remained committed to supporting,” said Michael Slavotinek, Vice President, Mid-Atlantic and the Carolinas at Walton Global. “This kind of land-based offering is uncommon in the DST space, but it’s one we believe will be a popular choice over the coming years, as it benefits not only investors and home builders, but also the growing number of home buyers in the market.”  

Walton Global successfully raised capital in 2023, including for the closing of its first retail DST called Georgia Growth 1 DST. The company anticipates this model will become increasingly popular due to the expected market-driven increase in land value. Escalation in land value is anticipated to occur when a home builder signs a purchase and sale agreement for land parcel and starts the process of obtaining necessary entitlements to build homes. Any potential financial benefit from this investment strategy will be transferred to the DST investors at the time of the land sale.

“We believe the North Carolina Growth 1 DST exchange offering is a great opportunity for accredited investors who are looking to diversify their portfolio, defer their capital gains taxes and preserve their capital through a hard asset by using a growth strategy,” said Todd Woodhead, SVP of Capital Markets at Walton Global.

Walton leverages its decades of experience in land acquisition to continue to acquire a strong pipeline of DST properties in growth regions across the country, hold the properties for growth in value as contemplated by 1031 tax regulations and market the property after the hold period ends to its established network of top U.S. home builders. When selecting land, Walton Global focuses on key factors such as population growth and employment growth near large MSAs. 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.