Capital Square 1031, a sponsor of Delaware statutory trust offering, has purchased a 55+ lifestyle manufactured housing community in Vero Beach, Florida.
The community consists of 183 homesites and was acquired on behalf of CS1031 Midway Estates MHC DST, a Regulation D private placement offering that seeks to raise $12.1 million from accredited investors, according to a filing with the Securities and Exchange Commission.
Midway Estates is situated on 28 acres of land in Vero Beach, a retirement destination on the Atlantic coast of Florida.
Louis Rogers, founder and chief executive officer of Capital Square, said that the property has “unique potential for value-add.”
“The average in-place homesite rent is only $585, approximately 27 percent below the market average of $720,” said Rogers. “Capital Square will increase the in-place rents gradually through annual mark-to-market increases as well as increases to the market average for new residents…”
Capital Square said that it intends to invest $3.8 million in the community to “significantly enhance quality and value to compete with communities in the surrounding area that are currently obtaining significantly higher rents.”
Capital Square has acquired seven 55+ age-restricted manufactured housing communities in coastal Florida markets for tax-advantaged real estate offerings.
Capital Square specializes 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, the firm has completed more than $3.5 billion in transaction volume.
Capital Square’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.