Capital Square 1031, a sponsor of Delaware statutory trust offerings, has fully subscribed its Regulation D private placement offering, CS1031 Misty Ridge Apartments DST, after raising nearly $41 million in investor equity.
Misty Ridge Apartments is a multifamily property situated on approximately 26 acres of land. Constructed in 1989, the community has one- and two-bedroom floorplans ranging in size from 786 square feet to 814 square feet.
“Misty Ridge Apartments is another Class B, value-add apartment community that works exceptionally well for Section 1031 exchange and cash investors seeking stable returns and appreciation,” said Louis Rogers, founder and chief executive officer. “By making strategic upgrades, Capital Square is able to increase the rent over time, which results in an increasing net operating income. As NOI increases, so do distributions to investors and the property’s valuation.”
Community amenities at Misty Ridge Apartments include a resort-style swimming pool, fitness center, tennis court, dog park, business center, playground, outdoor kitchen and private patios.
The property, which has rail access to Alexandria, Arlington and downtown Washington D.C. via the Virginia Railway Express, is an approximately 30-minute drive from the Amazon HQ2 campus where roughly 25,000 jobs will be created.
“Misty Ridge has benefited from stable occupancy due to its location near numerous employment centers in northern Virginia,” said Whitson Huffman, senior vice president and head of acquisitions. “The addition of Amazon HQ2 to the broader area is expected to drive economic value and rents in the multifamily market.”
In related news, Capital Square recently completed another DST offering, CS1031 Bedford Parke Apartments DST, comprised of a 232-unit multifamily property near Macon, Georgia.
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. To date, the company has completed approximately $2 billion in transaction volume. Capital Square’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.