Capital Square Acquires Newly Built, Class A Multifamily Community in Louisville for DST Offering
April 4, 2022 | Capital Square
Capital Square, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced today the acquisition of a newly built, Class A, 309-unit multifamily community in Louisville, Kentucky. The community, developed by LIV Development, was acquired on behalf of CS1031 The Louis Apartment Flats, DST, a Delaware Statutory Trust offering for Section 1031 exchange and other (cash) investors.
“Capital Square is bullish on Class A multifamily investments because they generate an unrivaled combination of stable cash flow, appreciation potential, and inflation protection,” said Louis Rogers, founder and chief executive officer of Capital Square. “The facts speak for themselves: for over two years, in spite of the pandemic, Capital Square has collected approximately 99% of all rents due on nearly 11,000 apartment units across the southeast. Investors are flocking to the multifamily asset class even more today because of the proven inflation protection.”
Located at 3750 Chamberlain Lane, The Louis is a newly built community completed in 2021. It offers one-, two-, and three-bedroom units with top-of-the-line finishes and an average unit size of 966 square feet. Community amenities include a: resort-style swimming pool with poolside cabanas; 24-hour, state-of-the-art fitness center; resident lounge with a complimentary gourmet coffee bar; business center with private workspaces and printing stations; fenced pet park with pet spa; and 24-hour onsite community market.
“LIV Development is incredibly pleased with the finished product at The Louis,” said Andrew Murray, LIV’s managing director of development. “We were able to deliver a highly-amenitized community that offers residents an excellent place to call home. Louisville is a great market and we’re glad to have completed our first project in the city.”
The property is within two miles of multiple retailers, restaurants and entertainment venues. The Louis is also within close proximity of Interstate 265, allowing residents easy access to Greater Louisville and the surrounding region.
“Capital Square acquires high quality apartment communities in high growth markets in the mid-south and Southeast,” said Whitson Huffman, chief strategy and investment officer. “Though a currently challenging macro-economic environment, the housing crisis in this country has created strengthening fundamentals in our target markets and multifamily investment continues to provide strong opportunities for compelling risk-adjusted returns for investors, and will do so for the foreseeable future.”
Within a 3-mile radius of The Louis, the population is 52,160 with a very strong median household income of $84,234, according to Yardi Matrix. The projected rent growth is anticipated to average 3.3% above the average annual rent growth from 2023 to 2026, Yardi Matrix also reports.
CS1031 The Louis Flats Apartments, DST seeks to raise $60.475 million in equity from accredited investors.
One of the oldest cities west of the Appalachians, Louisville was founded in 1778 by George Rogers Clark and named after King Louis XVI of France.1 It is the largest city in Kentucky and the 29th most populous city in the United States.2 The city is famous as the home of boxer Muhammad Ali, the Kentucky Derby, Kentucky Fried Chicken, the University of Louisville and its Cardinals, Louisville Slugger baseball bats, and three Fortune 500 companies – Humana, Kindred Healthcare and Yum! Brands.1 The main commercial airport in Louisville, Muhammad Ali International Airport, serves as the worldwide air hub of United Parcel Service.1
Since its founding in 2012, Capital Square has acquired 149 real estate assets for over 5,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.
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 $5.4 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. 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 four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.
About LIV Development
LIV Development develops and operates Class A multifamily communities throughout the United States. Known for intentional and innovative design, leading edge amenities, and desirable locations, LIV seeks to enrich the lives of its residents while positively impacting communities and delivering superior returns to investors. Throughout its 15-year history, LIV has developed more than 20,000 multifamily homes with a total combined market capitalization of $3 billion. In 2021, LIV debuted at #18 on the NMHC Top Developers list.3Headquartered in Birmingham, Alabama LIV has regional offices in Charlotte, Dallas, and Tampa.
Sources: 1. https://www.mentalfloss.com/article/67330/25-things-you-should-know-about-louisville | 2. U.S. Census Bureau | 3. https://www.nmhc.org/research-insight/the-nmhc-50/top-50-lists/2021-top-developers-list/
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. Diversification does not guarantee profits or protect against losses.
