Capital Square 1031, a sponsor of Delaware statutory trust offerings for 1031 exchange and other accredited investors, has launched a Regulation D private placement comprised of Marina Pointe Apartments, a Class B+ multifamily community in Chattanooga, Tennessee.
The offering, CS1031 Marina Pointe Apartments DST, seeks to raise $24.2 million in equity from accredited investors with a minimum investment of $50,000. The acquisition loan was financed by Fannie Mae with a 2.5 percent fixed rate 10-year loan.
“This is Capital Square’s 31st apartment community in the Southeast for the DST/1031 exchange program,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “During the COVID-19 pandemic, Capital Square’s multifamily portfolio has enjoyed exceptional rent collection in excess of 98 percent with increasing occupancy, reflecting the desirable combination of stable performance and growth highly sought by investors across the nation. In addition, Marina Pointe benefits from being located within Tennessee, an income tax-free state.”
Located at 5750 Lake Resort Drive, the 308-unit multifamily community is situated on 20.578 acres of land. Marina Pointe Apartments features one- and two-bedroom units ranging in size from 760 square feet to 1,414 square feet. Marina Pointe is 98.7% occupied as of September 2020. The medium household income within a one-mile radius of the property is $95,330.
Marina Pointe features a resort-style swimming pool, spa, outdoor lounge area, a 24-hour fitness center with free weights and cardio equipment, resident pet stations and covered mail centers. Additional amenities include detached garages, storage units, a clubhouse with a resident coffee bar, a cyber café, playground and outdoor grilling stations.
“Marina Pointe is well-located within an affluent submarket of Chattanooga, adjacent to Lake Chickamauga and Tennessee Valley Authority Big Ridge Small Wild Area, offering residents unparalleled access to outdoor amenities in a serene lakeside setting,” said Whitson Huffman, chief strategy and investment officer. “The property is well-located to capitalize on the city’s diverse employers in healthcare, technology, education and tourism, including Amazon, BlueCross BlueShield, Volkswagen, and the 60,000 employees that work downtown. With an affordable cost of living, access to 10-gigabit-per second fiber internet service and a strong talent pool produced by local colleges and universities, it is clear that Chattanooga is poised to continue its strong upward trajectory.”
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.