Capital Square 1031, a sponsor of Delaware statutory trust offerings, has sold Galeria del Rio, a 101-unit townhome community in Tucson, Arizona, for $32 million on behalf of a group of DST investors.
The property was originally purchased in March 2016 for approximately $21.1 million. According to Capital Square, the DST investors realized a 222.23 percent total return, or a 23.04 percent annualized return, from their 1031 exchange investment.
“This is the twelfth offering Capital Square has taken full cycle, resulting in exceptional returns for investors,” said Louis Rogers, founder and chief executive officer. “The sale of Galeria del Rio generated the second-highest total return for a DST sponsored by Capital Square…It’s not surprising that most investors reinvested their proceeds in a new DST sponsored by Capital Square to continue the tax deferral.”
Galeria del Rio sits on 11.5 acres and consists of 35 two-story buildings, with three- and four-bedroom townhome units. Each unit comes with 2.5 bathrooms, an attached two-car garage and a small private enclosed back yard. Property amenities include 24-hour controlled access, an outdoor swimming pool, a community roof deck area and a fitness center. Additional amenities include a community club room and 70 parking spaces.
According to Capital Square, since formation, it has sponsored 101 investment offerings comprised of 132 individual properties for more than 3,300 investors. The company has taken 12 of the DST offerings full cycle, resulting in an average 13.29 percent annual return and an average 162.89 percent total return.
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. Since 2012, Capital Square has completed more than $3 billion in transaction volume. 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.