Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 SE Apartment Portfolio II DST, a Regulation D private placement offering primarily for investors seeking 1031 exchange replacement property.
The Delaware statutory trust offering is comprised of a portfolio of four multifamily communities located in Warner Robins and Macon, Georgia, approximately 90 miles southeast of Atlanta, and seeks to raise $54.23 million in equity from accredited investors. The minimum investment is $50,000.
“Capital Square focuses on Class B multifamily properties in the Southeast for investors seeking stable income and growth,” said Louis Rogers, founder and chief executive officer. “The properties are stable and enjoy strong organic rent growth as well as upside from planned upgrades. In addition, an offering of this size has greater income and profit potential due to management efficiencies and economies of scale, combined with built-in diversification that has the potential to reduce concentration risk compared to a single asset investment.”
The portfolio includes:
- Austin Chase Apartments, a 256-unit, 292,900-square-foot property located in Macon
- Vistas Apartments, a 144-unit, 153,800-square-foot property located in Macon
- Southland Station Apartments, a 304-unit, 355,800-square-foot property located in Warner Robins
- Huntington Chase Apartments, a 200-unit, 221,300-square-foot property located in Warner Robins
“This four-property portfolio was financed by Fannie Mae at a fixed rate of 3.38 percent for 10 years,” said Seth Harris, executive vice president of investments. “With a debt service coverage ratio of 2.4, the portfolio is highly stable. The properties are well located near employment centers in the area, making Capital Square bullish on the income and growth potential of the portfolio.”
The company noted that each property is located within a 20-mile radius of each other in the Macon-Warner Robins submarket, which is home to Georgia’s largest concentration of aerospace industry activity and also known as Georgia’s “Aerospace Corridor.”
This offering follows CS1031 Bedford Parke Apartments DST, an offering of a similar Class B apartment community in Warner Robins.
In other company news, Capital Square expanded its sales team and hired James Brunger as executive vice president of national sales and Jennifer Middaugh as senior regional vice president of Mid-Atlantic sales.
Since inception, Capital Square has acquired 100 real estate assets for more than 2,000 investors seeking replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
Capital Square specializes in tax-advantaged real estate offerings, including Delaware statutory trusts and qualified opportunity zone funds, and has completed more than $1.85 billion in transaction volume. The firm’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.