Offering seeks to raise $54.23 million in equity from accredited investors and has a $50,000 investment minimum
ATLANTA, Jan. 16, 2020 /PRNewswire/ -- Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 SE Apartment Portfolio II, DST, a Regulation D private placement offering primarily for investors seeking 1031 exchange replacement property. The offering is comprised of a portfolio of four multifamily communities located in Warner Robins and Macon, Georgia, approximately 90 miles southeast of Atlanta.
"Capital Square focuses on Class B multifamily properties in the Southeast for investors seeking stable income and growth," said Louis Rogers, founder and chief executive officer. "The properties are stable and enjoy strong organic rent growth as well as upside from planned upgrades. In addition, an offering of this size has greater income and profit potential due to management efficiencies and economies of scale, combined with built-in diversification that has the potential to reduce concentration risk compared to a single asset investment."
This offering follows CS1031 Bedford Parke Apartments, DST, an offering of a similar Class B apartment community in Warner Robins that was fully subscribed in record time.
Located in Middle Georgia, the portfolio includes:
- Austin Chase Apartments, a 256-unit, 292,916-square-foot multifamily community located at 291 Plantation Centre Drive N. in Macon, Georgia;
- Vistas Apartments, a 144-unit, 153,792-square-foot multifamily community located at 4150 Arkwright Road in Macon, Georgia;
- Southland Station Apartments, a 304-unit, 355,848-square-foot multifamily community located at 210 Southland Station Drive in Warner Robins, Georgia; and
- Huntington Chase Apartments, a 200-unit, 221,344-square-foot multifamily community located at 1010 South Houston Lake Road in Warner Robins, Georgia.
"This four-property portfolio was financed by Fannie Mae at a fixed rate of 3.38% for 10 years," said Seth Harris, executive vice president of investments. "With a debt service coverage ratio of 2.4, the portfolio is highly stable. The properties are well located near employment centers in the area, making Capital Square bullish on the income and growth potential of the portfolio."
Each property in the portfolio is located within a 20-mile radius of each other in the Macon-Warner Robins submarket in Middle Georgia. Home to Georgia's largest concentration of aerospace industry activity, Middle Georgia is known as Georgia's "Aerospace Corridor."
Taylor Bird and Robert Stickel of Cushman & Wakefield represented the seller in the transaction. Alexandra Huffman of Walker & Dunlop originated the Fannie Mae acquisition loans for the portfolio.
Since inception, Capital Square has acquired 100 real estate assets for over 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
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. Capital Square has completed more than $1.85 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense's list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" and "Fantastic 50" reports. 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.
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SOURCE Capital Square 1031