How We Achieved a 55% IRR Through a Strategic Exit

At Crystal View Capital, we are continually focused on strategies that create and maximize value for our investors. A recent example of this approach is the successful disposition of a self-storage facility located in central Kentucky; an asset held within our Fund III portfolio. The property was sold utilizing a Delaware Statutory Trust (DST) structure, which facilitated an efficient and strategic exit.

It is important to clarify that the DST involved in this transaction is a distinct legal entity, entirely separate from Crystal View Capital. Neither Crystal View Capital nor any of its affiliates retain any ownership interest in the property following the sale. This structure enables new investors to acquire full ownership through the DST, typically via open market and brokerage channels, while allowing Crystal View Capital to fully exit the investment and realize returns on behalf of Fund III.

This asset is in Richmond, Kentucky and consists of 401 storage units, outdoor parking, and a cell tower lease, totaling 47,110 rentable square feet. Acquired in May 2021 for $2.5 million, the property was sold 30 months later for $5.4 million, delivering strong returns.

• Net Profit: $3.4 million

• IRR: 55.47%

• MOIC: 2.4x

Before the sale, our asset management team implemented several value-add initiatives to maximize the property’s performance:

• Rebranded the property

• Improved curb appeal and visibility

• Reduced delinquency through targeted collection efforts

• Maintained 90% average occupancy

• Increased rental charges by 30%, boosting economic occupancy by 14%

These efforts significantly enhanced the asset’s operational efficiency and financial performance.

Why a DST Structure?

The sale was completed through a Delaware Statutory Trust, a structure that allows new investors to defer capital gains. This strategic approach offered several benefits:

• No sale broker fees on the fund

• Ability to sell at appraised value

• Lower transaction costs

• Long-term investment for DST investors

• Win-win outcome for both our fund and incoming capital

This transaction marks one of several DST-based dispositions Crystal View Capital has executed, demonstrating our ability to leverage creative solutions to engage capital partners outside the scope of our traditional fund structure.

Disclaimer: Past performance is not indicative of future results. The investment returns referenced herein, including IRR and MOIC, reflect historical outcomes specific to this asset and are not a guarantee of future performance. This communication is intended for informational purposes only and should not be construed as an offer to sell or a solicitation of an offer to buy any security or investment product. Any offering is made only pursuant to formal offering documents and in accordance with applicable securities laws.

The information provided herein may include forward-looking statements, which are inherently subject to risks and uncertainties. Actual results may differ materially. Crystal View Capital does not provide tax, legal, or investment advice. Prospective investors should consult their own advisors.