Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 Saltmeadow Bay Apartments DST, a Regulation D offering that seeks to raise up to $24 million in total equity from accredited investors.
The private placement, which has a $50,000 investment minimum, is comprised of Saltmeadow Bay Apartments & Townhomes, a Class A, 229-unit multifamily community in Virginia Beach, Virginia.
“Located less than one mile from the Virginia Beach boardwalk and less than 20 minutes from the largest naval station in the world, Saltmeadow Bay Apartments is an exceptional multifamily community that benefits from outstanding demographics,” said Louis Rogers, founder and chief executive officer of Capital Square. “There is also a significant opportunity to improve operations at this high-end property and enhance value through active management.”
The 24-acre property has four residential buildings with four stories each, and is comprised of one-, two- and three-bedroom floorplans ranging in size from 866 square feet to 1,598 square feet. The property was constructed in 2006.
The gated community includes a resident clubhouse, controlled access buildings, elevator-serviced buildings, a swimming pool, 24-hour fitness center, dog park, onsite storage and covered parking and garages.
According to Colliers International, Virginia Beach is one of the most popular tourist destinations on the East Coast, and more than $225 million in development has recently been spent or is being spent in the oceanfront area of the coastal city. The brokerage firm also reported that the oceanfront area is the highest-income neighborhood in the region, with plans for $300 million in construction development in the near future.
The property was financed with a Fannie Mae acquisition loan with a 3.49 percent fixed rate for 10 years.
Since inception, Capital Square has acquired 85 real estate assets for approximately 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
Capital Square is an investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds. The firm has completed more than $1.5 billion in transaction volume, and its 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.