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NexPoint Launches Multifamily DST Offering in Birmingham

NexPoint, a prominent player in the alternative investment sector, has recently unveiled its latest product, the NexPoint Outlook DST, aimed at offering a unique investment opportunity in the multifamily real estate domain. This launch is part of a strategic expansion into high-demand markets, with this particular offering focused on a multifamily property situated in the burgeoning Birmingham, Alabama area.

The Property

The property, known as the Outlook at Greystone, comprises 300 Class-A apartment units. It is strategically positioned in Southeast Birmingham, making it highly accessible to key healthcare and employment centers, as well as the rapidly developing Highway 280 Corridor. The units vary from studios to three-bedroom layouts, with an average size of 905 square feet. Current rents are approximately $1,367 per month, reflective of the area's growing demand driven by a youthful demographic and a robust labor market.

Residents of the Outlook at Greystone can take advantage of modern amenities that include quartz countertops, spa-style bathrooms, and private balconies, all set within a community ambiance that promotes a resort-like lifestyle. Significant value-add opportunities exist, including planned renovations and the addition of washer/dryer installations. Such enhancements are anticipated to stimulate rent growth and boost returns for investors.

Investment Opportunities

The total acquisition cost for the property has been set at $61,177,430, with the offering size reaching $32,903,006. Interested investors are invited to participate starting with a minimum investment of $100,000, which can be made through cash or a 1031 exchange. The DST structure allows for an investor leverage of 49.85% and offers a fixed interest rate of 4.67% with interest-only payments for the entire 120-month duration. Participation in this offering is exclusive to accredited investors, ensuring a focus on quality over quantity in investor engagement.

The property is under the management of BH Management, a well-established company that manages over 100,000 units nationwide. Their partnership with NexPoint has proven fruitful, particularly with their shared commitment to operational excellence and value preservation. BH Management's extensive experience in multifamily management aligns seamlessly with NexPoint's goals, promoting stability and performance in their real estate ventures.

Future Prospects

CEO Matt McGraner expressed optimism regarding the multifamily sector going into 2026, noting, "We see significant opportunity in the multifamily space... With the robust demand for quality multifamily housing, we are pleased to bring this offering to investors seeking institutional-grade real estate exposure and the benefits of tax deferral through Section 1031 Exchanges." This sentiment echoes the strategic focus that NexPoint is adopting to capitalize on market trends and investor needs.

Moreover, this launch marks the second multifamily DST offering within a short span, following the NexPoint Oasis DST initiative for a property in the Orlando area that debuted in late October. This specifies NexPoint's commitment to providing diverse and lucrative options for real estate investment.

In a landscape characterized by rapid changes and economic challenges, NexPoint's latest offering in Birmingham positions itself as a potentially robust opportunity for those looking to invest in quality multifamily properties.

About NexPoint

NexPoint is a multibillion-dollar investment firm headquartered in Dallas, Texas. The firm operates across three main areas of business: real estate, corporate credit and equities, and retirement solutions. By engaging in a diverse range of asset classes and investment strategies, NexPoint aims to cater to a wide client base, offering investment solutions that span various vehicles, including mutual funds, REITs, and private funds. For more information about NexPoint and their offerings, you can visit their website.