Capital Square Reports $1.68 Billion In Acquisitions, Record Equity Raised And High-Yielding Dispositions in 2021
January 19, 2022 | Capital Square
Capital Square, a national investment sponsor specializing in tax-advantaged real estate offerings, announced today that in the year 2021, the firm acquired more than $1.68 billion in real estate (based on investment cost), took five Delaware statutory trust (DST) offerings full-cycle, and raised more than $800 million in equity for its investment programs. The firm also launched a real estate investment trust, Capital Square Apartment REIT Inc., that acquired its first property, a newly constructed Class A apartment community near Capital Square’s headquarters in Richmond, Virginia.
“2021 was a year of breaking records,” said Louis Rogers, founder and chief executive officer of Capital Square. “It was a year of record acquisitions, record dispositions, record fundraising, record hiring, record returns for investors and record profitability. Capital Square’s growing portfolio of Class A and B multifamily properties in the Southeast and Texas performed exceptionally, with an average of 99% rent collection and 96% occupancy. All of this success was in spite of a global pandemic that shut down meaningful parts of the economy.”
Capital Square’s $800 million in equity raised in 2021 is a 123% increase over 2020. As of year-end 2021, Capital Square has sponsored more than 110 investment offerings comprised of 125 individual properties for the firm’s DSTs, qualified opportunity zone funds and REIT. The firm has transacted more than $4.2 billion in real estate since late 2012.
During 2021, Capital Square took five DST offerings full cycle, with the majority of investors reinvesting in another Capital Square-sponsored DST to continue the tax deferral under Section 1031. Since 2018, Capital Square has taken 15 DST offerings full cycle. The sales of multifamily properties have generated an average 13.39% internal rate of return and an average 175.34% total return* to investors.
“Thank you to our investors, developer and seller partners, investment sales teams and debt providers who made 2021 a milestone year for Capital Square,” said Whitson Huffman, chief strategy and investment officer. “Through a challenging environment, our investment team was able to execute 25 new acquisitions with a total investment cost of $1.68 billion across our target markets, including multiple new regions of focus. None of this would be possible without the tireless efforts of our extremely talented team at Capital Square, who work everyday to bring the best investments and execution to our investors.”
Capital Square has launched six qualified opportunity zone developments in Richmond, Virginia, Charleston, South Carolina, and Raleigh, North Carolina, four of which are under construction. The opportunity zone developments will deliver over 900 residential units and more than 36,000 square feet of retail space.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $4.2 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for five consecutive years. Additionally, in 2021, the company was ranked 101st on the list of Inc. 5000 Washington D.C. Metro’s Fastest-Growing Private Companies. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and 2021 as well as on their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses.
*The “total return” represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested. The “annualized return” is defined as the difference between net sale proceeds and initial investment, plus the distributions over the holding period, divided by the initial investment; divided by the number of months; times 12. The ROE and annualized return are net of fees and represent a return to an individual investor. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieves in the past or that losses will not be incurred.
