Capital Square 1031, a sponsor of Delaware statutory trust offerings, has sold Candleglow Apartments, a 152-unit multifamily community near Tampa, Florida, which was owned by a group of DST investors.
The property was originally purchased for $7.3 million and was sold for roughly $13.8 million.
Capital Square noted that investors received approximately 253.3 percent total return on equity, or a 28.81 percent annualized return, from their 1031 exchange investment. The Candleglow Apartments DST was held for 5.3 years and delivered investors a 21.3 percent internal rate of return, the company said.
“Candleglow is a Class B apartment community near Tampa, Florida acquired for Capital Square’s 1031/DST exchange program,” said Louis Rogers, founder and chief executive officer of Capital Square. “The DST investment had a projected 10-year holding period in which to implement a value-add strategy to upgrade the property and increase the rents.”
Capital Square has taken nine DST offerings full cycle since inception that have resulted in an average 12.75 percent annual return and an average 155.05 percent return on equity, the company said.
Candleglow Apartments is located in Brooksville, Florida and has 10 residential two-story buildings and a single-story clubhouse. Amenities include a pool, sundeck/lounge area, two tennis courts, barbecue area with grills, racquetball court, 24-hour laundry facility and pet walk area. Situated on approximately 10.2 acres of land, Candleglow Apartments includes 257 open parking spaces at a ratio of nearly 1.7 spaces per unit.
Capital Square is a national 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, Capital Square has completed more than $2 billion in transaction volume.
The firm’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.