Capital Square has launched a $42.95 million Delaware statutory trust offering backed by a 255-unit apartment community in Midlothian, Virginia, a suburb of Richmond. CS1031 Colony at Centerpointe Apartments, DST is structured as a Regulation D, Rule 506(c) offering for accredited investors seeking replacement property for Section 1031 exchanges, as well as those pursuing cash flow and potential appreciation.
Built in 2016, Colony at Centerpointe offers one-, two- and three-bedroom apartments averaging 1,149 square feet. The community was 94.1% occupied when Capital Square announced the offering and includes a saltwater swimming pool, fitness center, yoga studio, clubhouse, dog park and business center. Capital Square noted that the property is near several major employers and regional development projects, including expansions by Bon Secours, CoStar, Google and the LEGO Group.
Capital Square described Midlothian as one of the Richmond region’s strongest multifamily submarkets, citing population growth, comparatively high household incomes and the affordability of renting relative to homeownership. Capital Square Living also manages the adjacent 192-unit Sapphire at Centerpointe community, adding the new property to a Richmond-area portfolio of more than 4,200 apartment units.
The offering’s SEC Form D confirms that it is being conducted under Rule 506(c), with a $50,000 minimum investment. The filing listed an estimated $3.6 million in sales commissions and showed that no sales had occurred as of its June 24 filing date.
