Capital Square, a sponsor of tax-advantaged real estate investments, announced the launch of Capital Square Denton BFR LLC.
The fund has been formed to raise approximately $22 million in equity from accredited investors to develop a 195-unit single family build-for-rent community in the Dallas suburb of Denton, Texas. Capital Square has partnered with Good + West Residential and Montgomery Street Partners as co-developers on the project.
“Capital Square is known for its tax-advantaged real estate offerings that provide tax deferral/exclusion, stable income and capital appreciation for thousands of investors nationwide,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Many investors and their advisors have requested additional real estate investments that generate superior risk adjusted returns in a shorter time horizon. This development LLC offering fits the bill for those investors and their advisors and is the first of many development offerings to follow.”
Located at 2205 N. Bonnie Brae Street, the 18-acre development will include a mix of one-, two- and three-bedroom single-family properties that average 1,005 square feet. Amenities will include a community pool, fitness center, business center, dog park, pavilion and pickleball court. The community will be developed and marketed under the Perch brand.
With direct access to Interstate 35 and University Drive, Denton’s primary east and west thoroughfares, residents will have direct access to downtown Denton, Frisco, McKinney, Dallas Fort Worth International Airport, Fort Worth and Dallas.
“The demand for build-for-rent living continues to grow because it offers the financial and leasing flexibility of a rental with the amenities and convenience of a professionally managed property,” said Whitson Huffman, co-chief executive officer. “Comparable build-for-rent communities in the Dallas-Fort Worth area have achieved significant rental premiums over nearby multifamily housing, which makes Denton an ideal location for Capital Square to expand its build-for-rent footprint.”
Major employers in Denton include the University of North Texas, Denton Independent School District, Texas Women’s University, Texas Health Presbyterian Hospital Denton and Peterbilt Motors.
The planned community is adjacent to Rayzor Ranch Marketplace which features Walmart, Sam’s Club and HEB. 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.
Since its founding in 2012 the company has acquired 164 real estate assets for over 6,000 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 has completed more than $7.5 billion in transaction volume.