Capital Square 1031, a sponsor of Delaware statutory trust offerings for 1031 exchange and other accredited investors, has purchased SomerHill Farms, a 140-unit value-add multifamily community in Gainesville, Virginia, a suburb of Washington, D.C.
The property was acquired for CS1031 SomerHill Farms Apartments DST, a Regulation D private placement offering that seeks to raise $23.2 million from accredited investors and has a minimum investment of $50,000.
“The community is located in a dynamic and rapidly growing Northern Virginia suburb, just outside of Washington D.C., with robust population growth, strong rental increases, high barriers to entry, and exceptional job opportunities within commuting distance, including Amazon’s $2.5 billion HQ2 development,” said Louis Rogers, founder and chief executive officer of Capital Square.
Constructed in 2006 on nearly 19 acres of land, SomerHill Farms has six three- and four-story residential buildings and one clubhouse. The community includes one-, two- and three-bedroom units ranging in size from 786 average square feet to 1,446 average square feet. Amenities at SomerHill Farms include a clubhouse, outdoor pool, dog park, fitness center, and community garden.
“SomerHill is located in the ninth wealthiest county in the nation, with a projected 3.78 percent average annual rent growth from fiscal year 2022 to fiscal year 2023,” said Whitson Huffman, chief strategy and investment officer. “SomerHill Farms is a prime example of a multifamily community with value-add potential. By improving the community through light unit renovations and amenity upgrades, Capital Square is able to raise the rent over time and increase the residual value of the property.”
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 company has completed more than $2.6 billion in transaction volume. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors.