Capital Square Fully Subscribes DST Offering of Multifamily Community Near Huntsville, AlabamaÂ
August 28, 2023 | 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 that its offering, CS1031 FarmHaus Apartments, DST, has been fully subscribed. The Regulation D private placement, which raised nearly $55.9 million from accredited investors, is comprised of a 324-unit Class A multifamily community located in the Huntsville suburb of Madison, Alabama. The property is encumbered by a Fannie Mae loan with a fixed interest rate of 4.50%, nearly 200 basis points below the interest rate today for a new loan.
“Capital Square is on a perpetual search for opportunity, seeking the best risk-adjusted returns from its real estate investments,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “First, in the Sunbelt, starting in Virginia, our home court, then in select submarkets throughout the Carolinas, Georgia, Florida and Texas, next Chatanooga, and, now, Huntsville, Alabama. The Huntsville market has exceptional dynamics that drive the housing market, making this one of Capital Square’s go-to markets.”
Located at 1260 Balch Road, the 22-acre property offers open-concept one-, two- and three-bedroom units averaging 973 square feet. Each unit features top-of-the-line finishes, including stainless steel appliances, standalone kitchen islands with quartz countertops, in-unit washers and dryers, walk-in closets, keyless entry access and private patios or balconies. Residents benefit from community amenities such as a resort style pool with large sundeck and cabanas, hot tub and spa, state-of-the-art fitness center, business center with a coffee bar, TV and gaming lounge, communal grilling station, as well as a fenced in dog park and pet spa.
The property’s location along Highway 72 provides residents easy access to multiple job centers throughout the Huntsville area, including Redstone Arsenal, Cummings Research Park and the Mazda Toyota Manufacturing facility. FarmHaus is adjacent to the Clift Farm master development which contains numerous retail outlets and a 400,000-square-foot Publix.
“FarmHaus Apartments is located in Greater Huntsville’s affluent multifamily submarket, where continuous population growth has resulted in a high demand for quality rental housing options,” said Whitson Huffman, co-chief executive officer. “The region is poised for continued prosperity, with robust population growth and high occupancy rates driving the demand for quality housing.”
Since its founding in 2012, Capital Square has acquired 171 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 from a cash investment in real estate.
About Capital Square
Capital Square is a vertically integrated 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, a real estate investment trust (REIT) and development funds for investors seeking higher returns in a shorter holding period. In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern U.S., with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $7.5 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 six 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. In 2023, Capital Square was recognized by the Richmond Times-Dispatch as one of the region’s “Top Work Places.” 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. Private placements are speculative. Diversification does not guarantee profits or protect against losses.
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