Overview
Artery Plaza is a 12-story, LEED-certified office tower in downtown Bethesda, leased to a diversified roster of professional-services and government-adjacent tenants. The DST holds title with non-recourse financing already in place, so exchange investors can place both equity and replacement debt without signing a new loan.
The business plan is income, not heroics: hold the stabilized asset for a projected five-to-seven-year term, distribute monthly, and pursue a full-cycle sale or a 721 roll-up at disposition.
Gallery
Highlights
- Class A tower with a weighted average lease term of 6.1 years.
- Non-recourse, interest-only financing at 52% LTV, fixed through the hold.
- Monthly distributions with depreciation sheltering a portion of income.
- 721 exchange exit available at full cycle.
10-Year Distribution Rate
Illustrative projected annual distribution rate; not a forecast or guarantee.
Benchmark Analysis
| Metric | This Offering | Peer Average |
|---|---|---|
| Year 1 income | 5.00% | 4.85% |
| Average income (hold) | 5.35% | 5.05% |
| Income growth rate | 1.4% / yr | 0.9% / yr |
Compared to the average stabilized office DST in the current marketplace. Illustrative.
Features
Offering Details
| Offering type | DST · 1031 Exchange |
|---|---|
| Property | Class A Office · Bethesda, MD |
| Sponsor | Baker Real Estate Partners |
| Current distribution | 5.25%, paid monthly |
| Minimum investment | $25,000 |
| Loan-to-value | 52% (non-recourse) |
| Projected hold | 5–7 years |
| 721 exchange exit | Optional |
| Offering exemption | Reg D 506(c) · accredited only |
Documents
Analyst Notes
A conservative, income-first DST from an experienced sponsor. Underwriting is realistic and the debt is well-structured for a 1031 investor who needs to replace leverage.
Pros. Institutional asset, pre-arranged non-recourse debt, credit-quality tenancy, and a clear 721 exit for investors who eventually want diversification and liquidity.
Cons. Office remains out of favor with the market, the hold is illiquid, and distributions depend on renewal of near-term lease expirations.
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