Capital Square Fully Subscribes $56 Million Alabama DST Offering
Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced that its offering, CS1031 FarmHaus Apartments DST, has been fully subscribed.
The Regulation D private placement, which raised nearly $55.9 million from accredited investors, is comprised of a 324-unit Class A multifamily community located in the Huntsville suburb of Madison, Alabama. Capital Square says the property is encumbered by a Fannie Mae loan with a fixed interest rate of 4.50%, nearly 200 basis points below the interest rate today for a new loan.
“Capital Square is on a perpetual search for opportunity, seeking the best risk-adjusted returns from its real estate investments,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “First, in the Sunbelt, starting in Virginia, our home court, then in select submarkets throughout the Carolinas, Georgia, Florida and Texas, next Chatanooga, and now, Huntsville, Alabama. The Huntsville market has exceptional dynamics that drive the housing market, making this one of Capital Square’s go-to markets.”
Located at 1260 Balch Road, the 22-acre property offers open-concept one-, two- and three-bedroom units averaging 973 square feet. Each unit features stainless steel appliances, standalone kitchen islands with quartz countertops, in-unit washers and dryers, walk-in closets, keyless entry access and private patios or balconies. Residents’ community amenities include a resort style pool with a sundeck and cabanas, hot tub and spa, state-of-the-art fitness center, business center with a coffee bar, TV and gaming lounge, communal grilling station, as well as a fenced in dog park and pet spa.
The property’s location along Highway 72 provides residents access to multiple job centers throughout the Huntsville area.
FarmHaus is adjacent to the Clift Farm master development which contains numerous retail outlets and a 400,000-square-foot Publix.
“FarmHaus Apartments is located in Greater Huntsville’s affluent multifamily submarket, where continuous population growth has resulted in a high demand for quality rental housing options,” said Whitson Huffman, co-chief executive officer. “The region is poised for continued prosperity, with robust population growth and high occupancy rates driving the demand for quality housing.”
Since its founding in 2012, Capital Square has acquired 171 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. The company has completed more than $7.5 billion in transaction volume.
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