Capital Square 1031, a sponsor of Delaware statutory trust offerings, has purchased 17 Broad, a 158-unit multifamily property located in downtown Chattanooga, Tennessee.
The property was acquired on behalf of CS1031 17 Broad Apartments DST, a Regulation D private placement investment offering that seeks to raise $18.5 million in equity from accredited investors and has a minimum investment of $50,000.
“This is Capital Square’s fourth acquisition of a Class A apartment community in Chattanooga,” said Louis Rogers, founder and chief executive officer of Capital Square. “Capital Square is bullish on Chattanooga because the area is projected to have high occupancy and rent growth, according to Yardi Matrix, and was recently ranked number one in the nation for employment outlook by Forbes Magazine.”
Located at 1701 Broad Street on 1.6 acres of land, the property was completed in 2020 and is located near numerous entertainment venues, cultural attractions and dining and beverage options. Chattanooga’s major employers include Erlanger Health System, BlueCross BlueShield of Tennessee, Volkswagen, CHI Memorial Hospital, Amazon, among others.
Community amenities include a fitness center; a heated saltwater swimming pool; sky lounge with mountain views; a sundeck and a TV lounge. Additional amenities include a business center, barbecue and picnic area, a gated onsite parking garage, package receiving and a clubhouse.
The property was sold by J.A. Murphy Group of Knoxville, Tennessee.
In other company news, Capital Square recently launched its sixth opportunity zone fund and seeks to raise $48.5 million from accredited investors to develop 320 West South Street, a mixed-use property in downtown Raleigh, North Carolina.
Capital Square is a 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. The company’s related entities provide due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors.