Capital Square 1031, a sponsor of Delaware statutory trust offerings, has sold Fairway View Apartments, a 243-unit multifamily community located near Atlanta, Georgia, for $45.75 million.
According to the company, Fairway View Apartments was owned by a group of DST investors who received a 191.72 percent total return, or a 22.43 percent annualized return, from their 1031 exchange investment. The property was originally purchased in September 2017 for $28 million.
“This is another full-cycle DST offering that generated outsized returns for Capital Square’s investors,” said Louis Rogers, founder and chief executive officer. “The sale demonstrates Capital Square’s ability to make smart purchases, add value, and, at the optimal time, sell for an exceptional profit. The returns blew away the pro forma, and did so in record time.”
Mike Waddell, president, noted that the pro forma called for a 10-year holding period, and Capital Square completed the sale in just over four years.
Located at 3345 Fairway Oaks Drive in Lawrenceville, the community is adjacent to the former Northwood Country Club golf course and is comprised of 26 two- and three-story residential buildings, a standalone clubhouse/office as well as laundry and maintenance buildings. Fairway View Apartments includes one-, two-, three- and four-bedroom units averaging 1,089 square feet.
Community amenities include golf course views, a coffee and tea bar, a playground, sports court, swimming pool grill/picnic area, a pet walk and care stations, an outdoor amenity area, and a laundry facility.
Since formation, Capital Square has sponsored 112 investment offerings comprised of more than 140 individual properties. The company said that it “has taken 15 of the DST offerings full cycle, resulting in an average 16.25 percent annualized return and an average 175.34 percent total return.”
Capital Square is a national 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. Since 2012, Capital Square has completed more than $3.6 billion in transaction volume. The firm’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.