NexPoint Launches $31.4M DST Offering for Greensboro's 240-Unit Waterford Place

The 240 apartment homes at 101 Shore Lake Drive, hugging the north shore of Lake Jeanette in Greensboro, were packaged last week into a $31.4 million investment product for wealthy out-of-state investors, with no notification required to the renters who live inside them.

Dallas-based NexPoint, a multibillion-dollar alternative investment firm, launched the NexPoint Waterford DST on March 24, restructuring Waterford Place as a Delaware statutory trust. The vehicle allows accredited investors, those who meet federal income or net worth thresholds, to buy passive ownership stakes in the 240-unit, garden-style community through a private placement. NexPoint is seeking to raise nearly $31.4 million in equity, according to reporting by Altswire.

The property has changed financial hands before. PitchBook records show Waterford Place was acquired in January 2020 by Eminent Capital and GMF Capital; it is currently managed by BH Management, a national apartment operator. NexPoint did not disclose an acquisition price in its public materials, and the full offering terms are available only to qualifying investors through the private placement memorandum.

"Waterford DST reflects our conviction in high-growth Southeast markets supported by strong fundamentals, durable renter demand, and meaningful opportunities for operational enhancement," said Matt McGraner, NexPoint's chief investment officer and executive vice president. In commercial real estate, "operational enhancement" and "value-add" are terms that typically refer to planned capital improvements financed, at least in part, through rent increases. No specific rent targets or capital improvement plans for Waterford Place appeared in NexPoint's public announcement.

The local affordability stakes are not abstract. Greensboro apartments rent for roughly $1,157 a month on average, about 29 percent below the national average, in a city where the median household income stood at $58,884 in 2023. Renters occupy exactly half of Greensboro's housing units, approximately 60,575 households, which means a significant share of the city's population has no buffer between itself and the operating decisions of distant investors.

NexPoint's investment pitch drew heavily on the region's economic momentum. The Greensboro-High Point MSA, it noted, has attracted JetZero's 14,500-job aerospace expansion and Toyota's multibillion-dollar battery manufacturing facility in nearby Liberty, N.C. Those projects, NexPoint argued, underpin "durable renter demand" in what it called "one of North Carolina's fastest-growing mid-sized markets."

The Delaware statutory trust structure concentrates day-to-day control with NexPoint as sponsor. Individual investors in the DST are passive and have no ability to direct management decisions. North Carolina has no statewide rent control law, and no provision of state law requires that tenants be notified when their apartment complex is restructured as a private investment vehicle. What oversight, if any, Greensboro or Guilford County exercises over the financialization of large apartment communities through DST structures is a question the NexPoint announcement left unanswered.

The Waterford offering follows NexPoint Marina DST, launched earlier in March and backed by Eufaula Cove Marina in Oklahoma and Grafton Harbor in Illinois, with a total acquisition cost of approximately $38.7 million and a target raise of $42.7 million. The Dallas firm appears to be moving quickly across asset classes, wrapping everything from lakeside marinas to lakeside apartments in the same legal wrapper and marketing it to the same investor class.

For the residents of Waterford Place, the offering is someone else's transaction entirely.