Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 Midwest Industrial DST, a Regulation D offering that seeks to raise $9.2 million in equity from investors seeking 1031 exchange replacement property and cash investors.
The private placement is comprised of a nearly 146,300-square-foot manufacturing facility situated on three parcels of land in Tipp City within Greater Dayton, Ohio. The building was purchased by the DST in an all-cash transaction.
Constructed in 1985, the facility serves as a corporate headquarters for Creative Extruded Products, an original equipment manufacturer and aftermarket manufacturer of vehicle parts for the auto industry. The company uses extrusion and injection molding to manufacture parts for vehicles, with a focus on windshield and back window moldings.
“This corporate headquarters and manufacturing facility was purchased on desirable economic terms, with annual rental increases and an absolute net lease where the tenant is responsible for all taxes, insurance, maintenance and repairs, thereby reducing future inflation risk,” said Whitson Huffman, senior vice president and head of acquisitions.
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 inception, the company has completed approximately $1.9 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.