Capital Square Fully Subscribes Manufactured Housing Community DST Offering Near Tampa
Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities, announced that its offering, CS1031 Holiday MHC, DST, has been fully subscribed. The Regulation D private placement, which sought to raise $38.3 million in equity from accredited investors, consists of a 214-unit, 55+ lifestyle manufactured housing community in the Tampa suburb of Lakeland, Fla.
“Manufactured housing communities (MHCs), such as Holiday Park, fill a vital niche for seniors who want the home ownership experience with modern amenities but at a more affordable price,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Many of Capital Square’s DST investors are drawn to MHC investments for strong returns and capital appreciation.”
Located in the 4100 block of New Tampa Highway, Holiday Park is a 21.08-acre, four-star 55+ lifestyle manufactured housing community with a billiards room, horseshoe court, heated swimming pool, and shuffleboard court. Capital Square intends to make strategic improvements worth $3 million, significantly enhancing the quality of the property to increase occupancy, rents, and residual value. Average market rent is approximately 57% higher than the average in-place rent at Holiday Park, providing a significant opportunity for rent growth.
The property’s location in central Lakeland offers residents an easy commute to nearby museums, shopping malls, and various theme parks such as Walt Disney World, Bok Tower Gardens, and Busch Gardens. Lakeland offers residents easy access via Interstate-4 to Tampa and Orlando, two of Florida’s largest metropolitan areas, making it a hub for local and regional employment, logistics, distribution and entertainment activities.
“Holiday Park is an amenity-rich and well-occupied manufactured housing community that enjoys an enviable location in a fast-growing part of Central Florida, where demand for quality housing among the state’s retirees is very high,” said Whitson Huffman, co-chief executive officer. “The positive long-term outlook for population growth, rent growth, and occupancy rates in the region will likely result in a continued supply/demand imbalance for housing options like those provided by Holiday Park, which we believe will result in a positive outcome for our DST investors.”
Capital Square is an active owner of multifamily communities nationally. Locally, Capital Square acquired Parkland Apartments, a 396-unit Class A multifamily community in the affluent Miami suburb of Parkland, Florida. The community was acquired on behalf of CS1031 Parkland Apartments, DST, which sought to raise $105.7 million in equity from accredited investors.
Since its founding in 2012, Capital Square has acquired more than 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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