Capital Square Buys Fannie Mae Financed Multifamily Property in Florida

Capital Square 1031, a sponsor of replacement property for Section 1031 exchanges, completed its fourth acquisition in seven months financed with a loan originated by Walker & Dunlop to be assigned to Fannie Mae with the purchase of Alexander Pointe Apartments.

Alexander Pointe Apartments is a Class B, garden-style community with 232 apartment homes located in the Jacksonville, Florida suburb of Orange Park.

Totaling more than $57 million, the four Fannie Mae acquisition loans include fixed interest rates for 10-year loan terms starting at 3.44 percent.

The Alexander Pointe acquisition loan was arranged using Fannie Mae Multifamily’s Green Rewards program, which features a lower interest rate, the potential for additional loan proceeds, and an energy and water audit report designed to help finance property improvements resulting in reduced water or energy consumption.

“Alexander Pointe is our fourth loan with Walker & Dunlop, one of the largest Delegated Underwriting and Servicing lenders for Fannie Mae, and the first one in our growing multifamily portfolio to benefit from the Green Rewards program,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “The green program is advantageous to all parties, resulting in a lower interest rate on the loan, reduced water and energy usage at the property, and lower utility costs for our tenants.”

In addition to the Alexander Pointe acquisition, Walker & Dunlop originated the loans Capital Square used to acquire The Canopy Apartments in San Antonio, Crossroads Apartments in Phoenix, and Maple Springs Apartment Homes in Richmond, Virginia.

Capital Square 1031 sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The firm, which has closed 32 DST offerings since its founding in late 2012, provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition for high net worth investors, private equity firms, family offices and institutional investors. As of November 30, the firm oversees a growing national portfolio of 58 real estate assets valued at approximately $591 million (based on investment cost).

Click here to visit the Capital Square 1031 directory sponsor page.