Capital Square Acquires Over $565 Million of Real Estate During First Half of 2021
Capital Square also launched its first real estate investment trust and took two DST offerings full cycle
August 2, 2021 | Capital Square
RICHMOND, Va. (Aug. 2, 2021) – Capital Square, a national investment sponsor specializing in tax-advantaged real estate, announced today that during the first half of 2021, the firm acquired over $565 million in real estate (based on investment cost), took two Delaware statutory trust (DST) offerings full cycle, and launched Capital Square Apartment REIT, Inc.
“Back in 2012, a skilled group of real estate professionals came together and formed Capital Square Realty Advisors LLC to sponsor tax-advantaged real estate investments,” said Louis Rogers, founder and chief executive officer of Capital Square. “The founders outlined the firm’s strategies for buying, financing, managing and selling investment real estate. Now, after nine years of operations, I am pleased to report that the investment strategies have been highly successful. In addition, new investments and strategies are being implemented to profit from recent market changes to attain even greater success in the future.”
As of June 30, 2021, Capital Square has sponsored 101 investment offerings that acquired 132 properties with an investment cost of $3.042 billion for more than 3,300 investors nationwide.
“Capital Square’s original business plan emphasized the sponsorship of Delaware statutory trusts, or DSTs, for Section 1031 exchange investors seeking tax deferral, stable returns and appreciation. The DST business has grown to be highly successful. Capital Square is the second-largest sponsor of 1031 offerings in the nation (as of June 30, 2021) according to Mountain Dell Consulting LLC, which tracks the securitized 1031 exchange market,” said Rogers.
Rogers added that financing for acquisitions and development projects is a strength of Capital Square. “The firm has negotiated extremely favorable debt, some with interest rates in the 2% range, by a leading group of lenders that include Fannie Mae, New York Life, Bank of America, Prudential Financial and PNC Bank. Capital Square would like to thank Alex Huffman and her team at Walker & Dunlop for arranging approximately $300 million of financing in the first half of the year.”
In addition, Capital Square Apartment REIT was launched to invest in multifamily properties in the Southeastern U.S. and Texas for stable income and growth. The REIT closed on its first acquisition in May, Sapphire at Centerpointe, a Class A, 192-unit multifamily community in Midlothian, a suburb of Richmond, Virginia, which was 99.5% occupied as of June 30, 2021.
During the first six months of 2021, Capital Square experienced the following activity for its investment programs:
• Capital Square acquired 10 properties for investment programs, including seven multifamily properties, a manufactured housing community in Florida, a state-of-the-art data center, and an R&D and industrial campus.
• Capital Square took two DST offerings full cycle, when it sold an office DST with a 159.31% total return on equity,* and a multifamily DST with a 167.22% total return on equity.
Capital Square has expanded its headquarters in Richmond, Virginia, has an office in Washington, D.C., and will soon open an office in Irvine, California. The firm has benefitted from being located in a business-friendly state. According to CNBC, Virginia is America’s Top State for Business in 2021.
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 and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $3 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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.CapitalSquare1031.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.
*The ROE (“return on equity”) 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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