Capital Square Acquires Multifamily Community near Augusta for DST Offering
September 21, 2022 | Capital Square
The acquisition is on behalf of a Delaware statutory trust investment offering that seeks to raise $26.8 million in equity from accredited investors
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 acquisition of Lakeside on Riverwatch Apartments, a 200-unit garden-style multifamily community in the Augusta suburb of Martinez, Georgia. The community was acquired on behalf of CS1031 Lakeside on Riverwatch Apartments, DST, which seeks to raise $26.8 million in equity from accredited investors and has a minimum investment requirement of $50,000.
“Lakeside on Riverwatch is located in an exceptional area, near the town ranked as the best place to live in the U.S.1 and the fourth fastest growing county in Georgia between 2010 to 2020,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This is Capital Square’s sixty-second acquisition of a multifamily community for the DST/1031 program. Capital Square is bullish on multifamily investments like Lakeside on Riverwatch because they have the potential to provide both stable cash flow and appreciation for investors.”
Located at 4300 River Watch Parkway, the 19.28-acre property offers one-, two- and three-bedroom units averaging 1,109 square feet. The seller recently completed renovations on 95% of the apartment homes, which included the addition of new black or stainless-steel kitchen appliances, resurfaced countertops, faux wood vinyl flooring, kitchen backsplashes and updated lighting fixtures. Community amenities include a recently renovated clubhouse and fitness center, a swimming pool with a sundeck, grilling area, package delivery room, and a dog park featuring an agility course and washing station. The property is ideally located on Interstate 20 between Atlanta and Columbia, with easy access to Interstates 95 and 77.2
Multiple retail outlets, including Publix, Kroger, Target and Walmart, are located within two miles of the property along Washington Road, a major local thoroughfare. Evans Towne Center Park, which features a splash pad, paved track, and playground, as well the Columbia County Performing Arts Center, are also within two miles of Lakeside at Riverwatch Apartments. Riverside Park, where residents can access the Savannah River and enjoy boating, fishing and other water-related activities, is just five miles from the property.
Augusta is home to several large economic sectors, including advanced manufacturing, aerospace, chemical manufacturing, food manufacturing, customer service, cybersecurity, data centers and logistic centers.3 The city features 12 hospitals, two biotechnology business incubators, several life sciences companies, and the University System of Georgia’s premier medical university with an aligned clinical treatment and teaching facility. The medical industry is estimated to contribute approximately $10 billion annually to Augusta’s economy, which has the highest concentration of healthcare services in the Southeast and is widely recognized as a “healthcare destination.”4 Top employers in the area include EZGO Textron, Richmond County School System, Graphic Packaging, Ferrara USA, Fort Gordon/Cyber Center of Excellence, and the U.S. National Security Agency – Augusta.3
“Lakeside on Riverwatch is an exceptional multifamily community that has been recently renovated and is located amidst a scenic part of the Savannah River basin,” said Whitson Huffman, co-chief executive officer. “The Greater Augusta economy continues to thrive, providing an abundance of quality job opportunities for its residents.”
Fort Gordon, a 56,000-acre United States Army installation, is the area’s largest employer with 32,000 civilian and enlisted employees. The site has been undergoing modernization since the U.S. Cyber Command headquarters was transferred there in 2020.5 In 2022, the region’s largest single construction project, the $934 million Cyber Center of Excellence, began with the demolition of older buildings on the installation that will be replaced with a new campus.6
Paul Vetter of Berkadia represented the seller in this transaction.
Since its founding in 2012, Capital Square has acquired 152 real estate assets for over 6,000 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.
Sources:
1. Money Magazine, 2020.
2. https://augustaeda.org/life-in-augusta/infrastructure/, 2022.
3. https://augustaeda.org/business-industry/largest-employers/
4. https://www.augustametrochamber.com/science-and-discovery## 2022.
5. https://www.wfxg.com/story/41872861/fort-gordon-prepares-for-growth-coronavirus 6.https://www.army.mil/article/257348/signal_corps_has_bright_future_is_key_in_network_transformation
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 US, 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 $6.0 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.
