Capital Square 1031, a sponsor of Delaware statutory trust offerings, has purchased a 55+ manufactured housing community in Sebastian, Florida.
This is the company’s 10th acquisition of an age-restricted manufactured housing in Florida for its 1031 exchange/DST program. The property was purchased on behalf of CS1031 Palm Lake Club MHC DST, a private placement offering that seeks to raise $24.3 million from accredited investors.
“[Manufactured housing community] properties in Florida are among the most desirable assets in the nation due to their scarcity, stability and growth potential,” said Louis Rogers, founder and chief executive officer. “Also, [these] assets solve a need for residents as an affordable housing option, providing most benefits of a single-family home with the low cost of multifamily housing.”
Palm Lake Club is a 97.6 percent occupied community with 126 homesites, a heated pool, clubhouse, library, recreational facilities, a shuffleboard court and a seven-acre lake surrounded by resident homes. The community is close to parks, shopping, golf courses and wildlife preserves, and its proximity to U.S. Highway 1 and Interstate 95 connects it to Vero Beach, as well as Port St. Lucie, West Palm Beach and Boca Raton.
“Palm Lake Club is a well-positioned asset that offers investors significant upside potential through a value-add execution due to minimal rent escalations over the past 10 years combined with room for strategic improvements,” said Whitson Huffman, chief strategy and investment officer with Capital Square.
Huffman indicated that Capital Square plans to make upgrades to the clubhouse, landscaping, outdoor lighting, roadways and other amenities.
Capital Square specializes 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 $4.9 billion in transaction volume. The company’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.