Capital Square 1031, a real estate investment and management firm specializing in Delaware statutory trust investments, has acquired High Ridge Apartments, a 160-unit multifamily community in Athens, Georgia. High Ridge Apartments is the company’s 41st DST offering.
Situated on 18 acres of land, High Ridge Apartments is comprised of 11 two- and three-story residential apartment buildings consisting of one-two- and three-bedroom units, with an average size of 1,228 square feet.
“The DST industry is growing at a rapid pace as the baby boomers and others seek a passive, investment-grade replacement property for their 1031 exchanges. Multifamily properties that generate stable cash flow have become the most popular asset class for DST offerings,” said Louis Rogers, founder and chief executive officer of Capital Square 1031.
“With limited new construction in the past 10 years, an occupancy rate of 95 percent and a rental growth of nearly 5 percent, Athens is an exceptional multifamily rental market,” Rogers added. “High Ridge aligns perfectly with Capital Square 1031’s strategy of acquiring institutional-quality assets in favorable markets with strong multifamily fundamentals that translate to stability and long-term growth for Capital Square’s growing number of investors.”
The property was acquired with a 10-year term loan from Fannie Mae, same as prior Capital Square 1031 acquisitions. The property qualified for Fannie’s Green Financing Program, resulting in lower utility bills and a reduced interest rate for making energy-saving expenditures.
Community amenities include a clubhouse, fitness center, grilling area, lighted tennis court, playground and a swimming pool, as well as onsite management and maintenance. Individual unit amenities include custom cabinetry, energy efficient appliances, a private balcony or patio, and walk-in closets.
The Athens area is home to the University of Georgia, which currently has more than 36,000 students, as well as the University of Georgia – August University Medical Partnership, and Athens Technical College. According to Reis.com, the local multifamily market experienced the highest average asking rents on record in 2017. Among its accolades, Athens made Forbes’ ‘Best Places to Retire in 2017’ list and National Geographic Traveler’s ‘Best Trips 2017’ list, and USA Today Sports ranked the city second on its ‘Best College Football Towns in America’ list.
Capital Square 1031 is a national real estate investment and management company that sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The company provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. As of December 8, 2017, the firm oversees a portfolio of 61 real estate assets valued at approximately $650 million (based on investment cost).