Capital Square, an investment sponsor specializing in tax-advantaged real estate, reported that that during the first half of 2021, the firm acquired more than $565 million in real estate (based on investment cost), took two Delaware statutory trust offerings full cycle, and launched Capital Square Apartment REIT Inc., a Regulation D real estate investment trust.
The firm said that it has sponsored 101 investment offerings that acquired 132 properties with an investment cost of $3.04 billion for more than 3,300 investors nationwide, as of June 30, 2021.
“Capital Square’s original business plan emphasized the sponsorship of Delaware statutory trusts, or DSTs, for Section 1031 exchange investors seeking tax deferral, stable returns and appreciation,” said Louis Rogers, founder and chief executive officer of Capital Square. “The DST business has grown to be highly successful. Capital Square is the second-largest sponsor of 1031 offerings in the nation (as of June 30, 2021) according to Mountain Dell Consulting LLC, which tracks the securitized 1031 exchange market.”
The company recently launched its private REIT, Capital Square Apartment REIT, to invest in multifamily properties in the Southeastern U.S. and Texas. The REIT closed on its first acquisition in May, Sapphire at Centerpointe, a Class A, 192-unit multifamily community in the Richmond suburb of Midlothian, Virginia, that was 99.5 percent occupied as of June 30, 2021.
During the first six months of 2021, Capital Square experienced the following activity for its investment programs:
The firm purchased 10 properties for investment programs, including seven multifamily properties, a manufactured housing community in Florida, a data center, and a research and development/industrial campus.
Capital Square noted that it took two DST offerings full cycle, an office DST with a 159.31 percent total return on equity and a multifamily DST with a 167.22 percent total return on equity.
The firm has expanded its headquarters in Richmond, Virginia, has an office in Washington, D.C., and will soon open an office in Irvine, California.
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, the firm has completed more than $3 billion in transaction volume. 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.