Capital Square Completes Construction of Build-For-Rent Community Near Dallas

Capital Square announced the construction completion of Perch Denton, a 195-unit, single-family build-for-rent community in the Dallas suburb of Denton, Texas. Capital Square, a sponsor of tax-advantaged real estate investments and a developer and manager of housing communities, has partnered with Good + West Residential and Montgomery Street Partners (collectively, “Perch”) as co-developers on the project.

According to Capital Square, almost all certificates of occupancy have been issued and nearly one-third of the homes are already occupied with strong leasing activity underway.

“Capital Square is a vertically integrated, national real estate firm built on three pillars: invest, build, and manage,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Perch Denton is a part of Capital Square’s build strategy that gives the firm a competitive advantage by building our own investment properties for the various investment programs: [Delaware statutory trusts], opportunity zone funds, and [real estate investment trusts].”

Watch Rogers further discuss the value and advantages of build-for-rent homes in a recent video interview with The DI Wire, and as part of ADISA’s Focus on Alternatives Series.

Located at 2205 N. Bonnie Brae Street, the 18-acre development includes a mix of one-, two- and three-bedroom single-family homes that average 1,005 square feet. Community amenities include a resort-style pool, fitness center, business center, dog park, pavilion, and pickleball court all developed and marketed under the Perch brand.

An abundance of retail, shopping, and dining options can be found within a mile of the property, including the adjacent Rayzor Ranch Marketplace anchored by Walmart, Sam’s Club, and an H-E-B supermarket. Immediately to the south is Rayzor Ranch Town Center, which contains an array of fast-casual and sit-down dining options, including In-N-Out, Chipotle, Chili’s, and more.

With direct access to Interstate 35 and University Drive, Denton’s primary east and west thoroughfares, residents have direct access to Dallas Fort Worth International Airport and its cities, as well as downtown Denton, Frisco, and McKinney.

“Denton and its neighboring counties have experienced outsized population and job growth. Capital Square is pleased to help alleviate the shortage of quality housing with the delivery of 195 new single-family homes,” said Whitson Huffman, co-chief executive officer. “Leasing activity has been strong, and we are exceeding our projections for realized rents, underscoring our belief that the Dallas Metroplex is an ideal market for high-quality build-for-rent communities like Perch Denton.”

Capital Square formed a joint venture with Good + West Residential and Montgomery Street Partners to develop Perch Denton, which has been capitalized with funds raised from accredited investors in Capital Square Denton BFR LLC, a private-placement investment sponsored by Capital Square.

Capital Square currently has another build-for-rent community under construction in Glendale, Ariz. The 29-acre lot in the Phoenix suburb will become Ironwood Homes at Rosefield and feature 320 single-family rental homes and plenty of amenities. Development of the project is being primarily funded with proceeds from Capital Square Glendale BFR LLC, a project-specific limited liability company that is currently raising approximately $49 million in equity from accredited investors.

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, along with opportunity zone funds and a REIT that acquires rental housing in the Southeast and Texas.

Capital Square is a real estate firm specializing in tax-advantaged real estate investments, including DSTs 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 eight current projects totaling approximately 2,000 apartment units with a total development cost more than $590 million. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume.

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