Capital Square Acquires BFR Community Near Wilmington, N.C., for DST Offering

Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of multifamily communities, has acquired Seaboard at Sidbury Station, a newly constructed, 113-unit, build-for-rent housing community in the Wilmington suburb of Castle Hayne, N.C. The community was acquired on behalf of CS1031 Sidbury Station BFR Housing, DST, which seeks to raise equity from accredited investors.

This represents Capital Square’s fifth BFR offering for its Section 1031/Delaware statutory trust program and the eighth BFR project for its private equity group. Led by co-chief investment officers Dave Platter and Jon Trott, Capital Square’s private equity group was formed to profit from opportunities in the housing market, including a dedicated build-for-rent strategy in high-growth Sunbelt markets.

“Capital Square invests broadly in housing – Class A and B multifamily, manufactured housing in Florida and BFR communities throughout the Sunbelt,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Capital Square’s investors are attracted to newly constructed BFR communities such as Sidbury Station because demand is strong from residents who want a single-family home but can’t afford to own. Capital Square’s BFR communities help to satisfy the demand for a single-family home with amenities at an affordable price.”

Earlier this summer, Capital Square fully subscribed a BFR offering in Knoxville, Tenn., as well as a manufactured housing community in a Tampa, Fla., suburb.

Located in the 6100 block of Dichondra Road, construction of Sidbury Station was completed in 2023. Developed by D.R. Horton, the nation’s largest homebuilder by volume, the modern units boast a mix of three-, four-, and five-bedroom detached single-family homes, averaging 1,829 square feet. The open floor plans feature high-end amenities, including granite countertops, stainless steel appliances, full-size washers and dryers, walk-in closets, smart home integration, backyards, and attached two-car garages. Luxurious community amenities include a resort-style swimming pool, fitness center, clubhouse, sport court, playground, and professional landscaping.

Sidbury Station enjoys a prime position on the state’s coast within the greater Wilmington, N.C., area, according to Capital Square. Infrastructure plays a pivotal role in Wilmington’s economic vitality. The Wilmington International Airport facilitates regional and national connectivity, supporting business travel and tourism, and the Port of Wilmington. As one of the busiest ports on the U.S. East Coast, the port enhances the region’s global trade capabilities by handling a diverse range of cargo and contributing significantly to the local economy.

Fueled by its pristine beaches and historic attractions, the region’s tourism sector attracts millions of visitors seeking leisure and recreation opportunities, according to Capital Square. The healthcare industry is another cornerstone, supported by major medical facilities and a growing demand for healthcare services.

“Wilmington has experienced a 30% growth in jobs since 2020, led by healthcare, government and education, while the population is expected to grow by approximately 3% annually,” said Whitson Huffman, co-chief executive officer. “Limited supply in the area has provided Capital Square with the strategic advantage to drive occupancy and rental growth. Sidbury Station is one of only four purpose-built rental communities that make up less than 2% of the metro area’s rental inventory, and it has already reached 95% occupancy as of June.”

Since its founding in 2012, Capital Square has acquired 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.

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. In recent years the company has become an active developer of mixed-use, multifamily properties in the southeastern United States, with nine current projects totaling over 2,000 apartment units with a total development cost in excess of $790 million. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume.

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