Capital Square, an investment sponsor specializing in tax-advantaged real estate offerings, reported that in the year 2021, it purchased more than $1.68 billion in real estate (based on investment cost), took five Delaware statutory trust (DST) offerings full-cycle, and raised more than $800 million in equity for its investment programs.
The firm also launched a real estate investment trust, Capital Square Apartment REIT Inc., that acquired its first property, a newly constructed Class A apartment community near Capital Square’s headquarters in Richmond, Virginia.
“2021 was a year of breaking records,” said Louis Rogers, founder and chief executive officer of Capital Square. “It was a year of record acquisitions, record dispositions, record fundraising, record hiring, record returns for investors and record profitability. Capital Square’s growing portfolio of Class A and B multifamily properties in the Southeast and Texas performed exceptionally, with an average of 99 percent rent collection and 96 percent occupancy. All of this success was in spite of a global pandemic that shut down meaningful parts of the economy.”
Capital Square’s $800 million in equity raised in 2021 is a 123 percent increase over 2020. As of year-end 2021, the firm has sponsored more than 110 investment offerings comprised of 125 individual properties for its DSTs, qualified opportunity zone funds and REIT. The firm has transacted more than $4.2 billion in real estate since late 2012.
During 2021, Capital Square took five DST offerings full cycle, with the majority of investors reinvesting in another DST to continue the tax deferral under Section 1031.
Since 2018, Capital Square has taken 15 DST offerings full cycle. The sales of multifamily properties have generated an average 13.39 percent internal rate of return and an average 175.34 percent total return to investors.
Capital Square has launched six qualified opportunity zone developments in Richmond, Virginia, Charleston, South Carolina, and Raleigh, North Carolina, four of which are under construction. The opportunity zone developments will deliver approximately 900 residential units and more than 36,000 square feet of retail space, the company said.
Capital Square specializes 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 $4.2 billion in transaction volume. Capital Square’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.