Capital Square

Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced today that its offering, CS1031 Summit Place BFR Housing, DST, has been fully subscribed. The Regulation D private placement is comprised of a newly constructed 120-unit build-for-rent (BFR) housing community in Knoxville.

As of June 2024, Capital Square is the sponsor of seven BFR communities, comprising over 1,000 units: Summit Townhomes in Knoxville, Tennessee; Brighton Townhomes in Atlanta, Georgia; Ashford Townes in Raleigh, North Carolina; Aspen Vista in Reno, Nevada; Creekside Terrace in San Antonio, Texas; Perch Denton in Dallas, Texas; and Ironwood Homes at Rosefield in Phoenix, Arizona.

“This is Capital Square’s seventh BFR community acquired or under construction,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Housing prices and mortgage rates make home ownership unaffordable for many who seek a single-family home. BFR communities such as Summit Townhomes fill an important niche in providing single-family housing with a yard for kids and pets in a quality school district.”

Located at 100 Lisa’s Way, construction of Summit Townhomes was completed in 2022. The mix of three- and four-bedroom townhomes average over 1,400 square feet with open floor plans, marble countertops, stainless steel appliances, full size washer and dryers, walk-in closets, smart home integration and extra storage space. Community amenities include a firepit, picnic and barbecue area, private and overflow parking, covered gazebo and bark park.

The property is in close proximity to State Route 62, providing residents with easy access to top employers, such as Oak Ridge National Laboratory, Y-12 National Security Complex, UT-Battelle, Methodist Medical Center of Oak Ridge and Oak Ridge Schools. Summit Townhomes is served by Woodland Elementary School, Robertsville Middle School and Oak Ridge High School, all within a two-mile radius of the property.

Summit Townhomes is located within a 30-minute drive from downtown Knoxville. The Knoxville metropolitan statistical area is home to approximately 750,000 people and its population is projected to increase by 3.6% over the next five years.¹ The University of Tennessee plays a significant role in Knoxville’s economy. With iconic landmarks like Neyland Stadium, with a seating capacity of more than 100,000, university sports events generate meaningful revenue for local businesses. Moreover, the university employs more than 11,700 people who focus on research, educational programs and partnerships that contribute to the city’s overall economic growth.

“Summit Townhomes is located in the midst of the thriving Knoxville-area economy and promising real estate market, where increasing population rates continue to push demand for quality rental housing,” said Whitson Huffman, co-chief executive officer. “The Knoxville MSA’s undersupplied submarket makes this an ideal investment for our investors to diversify their portfolio with a high-quality BFR community.”

Since its founding in 2012, Capital Square has acquired 170 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.

Sources:

1.Yardi Matrix, 2023.

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 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 nine current projects totaling approximately 1,900 apartment units with a total development cost in excess of $740 million. Since 2012, Capital Square has completed more than $7.8 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 seven 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 multifamily 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.