Capital Square Fully Subscribes Build-for-Rent DST Offering in Knoxville
Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities, announced that its offering, CS1031 Summit Place BFR Housing DST, has been fully subscribed. The Regulation D private placement, which sought to raise more than $18.4 million in equity from accredited investors, is comprised of a newly constructed 120-unit build-for-rent housing community in Knoxville, Tenn.
As of June 2024, Capital Square is the sponsor of seven BFR communities, comprising over 1,000 units: Summit Townhomes in Knoxville; Brighton Townhomes in Atlanta; Ashford Townes in Raleigh, N.C.; Aspen Vista in Reno, Nevada; Creekside Terrace in San Antonio; Perch Denton in Dallas; and Ironwood Homes at Rosefield in Phoenix.
“This is Capital Square’s seventh BFR community acquired or under construction,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Housing prices and mortgage rates make home ownership unaffordable for many who seek a single-family home. BFR communities such as Summit Townhomes fill an important niche in providing single-family housing with a yard for kids and pets in a quality school district.”
Located at 100 Lisa’s Way, construction of Summit Townhomes was completed in 2022. The mix of three- and four-bedroom townhomes average over 1,400 square feet with open floor plans, marble countertops, stainless steel appliances, full size washer and dryers, walk-in closets, smart home integration, and extra storage space. Community amenities include a firepit, picnic and barbecue area, private and overflow parking, covered gazebo and bark park.
The property is in close proximity to State Route 62, providing residents with easy access to top employers, such as Oak Ridge National Laboratory, Y-12 National Security Complex, UT-Battelle, Methodist Medical Center of Oak Ridge, and Oak Ridge Schools. Summit Townhomes is served by Woodland Elementary School, Robertsville Middle School and Oak Ridge High School, all within a two-mile radius of the property.
Summit Townhomes is located within a 30-minute drive from downtown Knoxville. The Knoxville metropolitan statistical area is home to approximately 750,000 people, said Capital Square, and its population is projected to increase by 3.6% over the next five years. The University of Tennessee plays a significant role in Knoxville’s economy. The university employs more than 11,700 people.
“Summit Townhomes is located in the midst of the thriving Knoxville-area economy and promising real estate market, where increasing population rates continue to push demand for quality rental housing,” said Whitson Huffman, co-chief executive officer. “The Knoxville [metropolitan statistical area’s] undersupplied submarket makes this an ideal investment for our investors to diversify their portfolio with a high-quality BFR community.”
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 gross asset value of approximately $740 million. Since 2012, Capital Square has completed more than $7.8 billion in transaction volume.
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