Capital Square, a sponsor of tax-advantaged real estate investments, announced the $75.5 million sale of Ivy Commons Apartments, a 344-unit community in Marietta, Georgia.
The property was owned by a group of Delaware statutory trust investors who realized an approximately 200% total return and 20% internal rate of return from their 1031 exchange investment.
“Capital Square is thrilled to have sponsored another successful full-cycle DST program for Section 1031 exchange and cash investors,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This value-add DST program produced stable cash flow as anticipated and an exceptional profit on sale, resulting in approximately 200% total return and 20% IRR. The investors are thrilled with the outcome; most are reinvesting with Capital Square in another DST/1031 to continue the tax deferral under Section 1031.”
Capital Square acquired the 28.4-acre property, located at 3555 Austell Road SW, in July 2018. The community comprises 39 residential buildings and a dual leasing center with a clubhouse. Ivy Commons Apartments offers one-, two- and three-bedroom units averaging 1,075 square feet. Community amenities include a swimming pool, fitness center, business center, two tennis courts, laundry facility, playground and a conference room.
“The sale of Ivy Commons is the final step in the successful execution of our business plan, which was centered around renovating units,” said Whitson Huffman, co-chief executive officer. “Approximately $2.7 million was invested for renovations and upgrades to the property, improving residential life and the community as a whole. This dramatically increased the value of the property.”
Since 2012, Capital Square has completed more than $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.