Cunat, Inc. has launched Cunat Exchange X DST, a Delaware statutory trust offering that is targeting an equity raise of approximately $56.17 million. The vehicle is backed by The Residence of Fox Meadows, a newly developed multifamily community in McHenry, Illinois, about 50 miles northwest of Chicago.
The Residence of Fox Meadows comprises 540 apartment units across 18 residential buildings situated on roughly 37 acres. Cunat developed the property and has now sold it to Cunat Exchange X DST for a reported price of $135 million. At the time of the announcement, the community was 97.5% occupied, indicating a largely stabilized asset at the point of transfer into the DST structure.
The property is located at 1840 Aastri Drive in McHenry and offers a mix of one-bedroom, one-bedroom-with-den, and two-bedroom floor plans. According to the company, The Residence of Fox Meadows is one of 15 Cunat properties in McHenry County, where Cunat, Inc. is headquartered. This concentration reflects a locally focused multifamily portfolio and longstanding presence in the county.
Financing for the DST-owned property consists of an $84.375 million nonrecourse mortgage loan. The debt carries a 10-year term and is structured on an interest-only basis at a fixed interest rate of 5.43%. The combination of long-term, fixed-rate, interest-only financing and high initial occupancy provides a defined capital structure and income profile for the trust’s investors, although the lender was not disclosed.
Commenting on the asset, Brian Cunat, co-founder and CEO of Cunat, Inc., noted that the firm developed The Residence of Fox Meadows and has been involved with the property since inception. He emphasized that McHenry County is the company’s home market and that its underwriting for this offering is based on decades of operating results from Cunat communities in the area.
The announcement of the DST launch and related sale was highlighted alongside promotional information for the Connect Midwest Multifamily conference, scheduled for the afternoon of Tuesday, June 8, 2027, at Joe’s Live in Rosemont, Illinois. The conference reference underscores the broader regional interest in multifamily investment activity and capital formation across the Midwest.
