NewStar Exchange Acquires Newly Constructed Built-to-Rent ("BTR") Community in Charlotte, North Carolina and Launches New 1031 Delaware Statutory Trust Offering

Acquisition and Offering - NEWSTAR Exchange acquired Hadley Crossing, a single-family rental subdivision in Charlotte, North Carolina, developed by Stella Homes [1] - The property features 44 detached homes with 4 bedrooms, two-car attached garages, and high-end finishes such as Hardiplank facades, Quartz countertops, and stainless steel appliances [2] - NEWSTAR Exchange launched a new Delaware Statutory Trust (DST) offering for accredited investors seeking to complete like-kind exchanges under IRC Section 1031 [1] Financial and Market Performance - Hadley Crossing reached stabilization within less than 8 months, achieving the 3 highest build-to-rent rental rates in the Charlotte market [3] - The average household income in the area exceeds $200,000 [3] - The DST offering seeks to raise approximately$14 million in equity from accredited investors and is financed with a first mortgage through Fannie Mae, offering 43% leverage to investors [3] Company Background - NEWSTAR Exchange is a subsidiary of NEWSTAR, investing in and managing Class A single-family built-to-rent residential communities in the US Sun Belt [4] - The company sponsors Delaware Statutory Trusts and brings high-quality assets to market through a rigorous due diligence process [4] - NEWSTAR Exchange has successfully closed out three DST programs, raising more than $50 million in equity in partnership with Preferred Capital Securities [3] Partnership and Distribution - Preferred Capital Securities (PCS) is the managing broker-dealer for NEWSTAR Exchange’s DST offering [3] - PCS has a track record of raising over$5 billion in retail capital across 16 offerings and issuing approximately $1 billion in liquidity for investors since its inception in 2011 [5] - The offering is distributed by PCS in accordance with Rule 506(c) of Regulation D of the Securities Act [3]