Capital Square Delivers Approximately 200% Total Return* to DST Investors in Georgia Multifamily Sale
November 7, 2022 | Capital Square
Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the $75.5 million sale of Ivy Commons Apartments, a 344-unit community in Marietta, Georgia, less than 10 miles from Truist Park, home of the Atlanta Braves.
The property was owned by a group of Delaware statutory trust, or DST, investors who realized approximately 200% total return and 20% internal rate of return from their 1031 exchange investment.*
“Capital Square is thrilled to have sponsored another successful full-cycle DST program for Section 1031 exchange and cash investors,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This value-add DST program produced stable cash flow as anticipated and an exceptional profit on sale, resulting in approximately 200% total return and 20% IRR. The investors are thrilled with the outcome; most are reinvesting with Capital Square in another DST/1031 to continue the tax deferral under Section 1031.”
Capital Square acquired the 28.4-acre property, located at 3555 Austell Road SW, in July 2018. The community comprises 39 residential buildings and a dual leasing center with a clubhouse. Ivy Commons Apartments offers one-, two- and three-bedroom units averaging 1,075 square feet. Community amenities include a swimming pool, fitness center, business center, two tennis courts, laundry facility, playground and a conference room.
“The sale of Ivy Commons is the final step in the successful execution of our business plan, which was centered around renovating units,” said Whitson Huffman, co-chief executive officer. “Approximately $2.7 million was invested for renovations and upgrades to the property, improving residential life and the community as a whole. This dramatically increased the value of the property.”
Since its founding in 2012, Capital Square has acquired 160 real estate assets for over 6,500 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, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years, the company has become an active developer of mixed-use multifamily properties in the Southeastern U.S., with eight current projects with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $6.6 billion in transaction volume. 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.CapitalSq.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. Diversification does not guarantee profits or protect against losses. Private placements are speculative.
*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.
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Jill Swartz
Spotlight Marketing Communications
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jill@spotlightmarcom.com
