Capital Square 1031, a sponsor of Delaware statutory trust offerings, has purchased Whispering Pines, a 301-homesite manufactured housing community in Kissimmee, a city in the Orlando metropolitan area.
The property, exclusive to those ages 55 and older, was acquired for CS1031 Whispering Pines MHC DST, a Regulation D private placement offering that seeks to raise $34.5 million in equity from accredited investors with a minimum investment of $50,000.
“This is Capital Square’s fourth acquisition this year of four- and five-star, age-restricted, manufactured housing communities in coastal Florida markets,” said Louis Rogers, founder and chief executive officer. “Capital Square is bullish on manufactured housing in Florida due to exceptionally strong demand from retirees and very limited supply for affordable senior housing.”
Whispering Pines is situated on approximately 61 acres of land and has additional land with potential for the development of 50 new homesites. The property is 99 percent occupied.
Capital Square said that it intends to “maximize the value” of Whispering Pines by maintaining strong occupancy and increasing homesite rental rates to bring them closer to the market average over time.
“Due to the potential cash flow, lack of competitive new supply and positive tailwinds in manufactured housing, Capital Square has actively cultivated a deep bench of age-restricted communities in coastal Florida markets,” said Whitson Huffman, chief strategy and investment officer. “In addition, 10-year fixed-rate financing in the low to mid 2.0 percent range has allowed us to lock in very accretive financial leverage, thanks to Walker & Dunlop and Fannie Mae.”
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. To date, the company has completed more than $2.3 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.