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Capital Square Sells California Retail DST, Delivers 146.6% Total Return

Capital Square Sells California Retail DST, Delivers 146.6% Total Return. 1031, 1031 Exchange, acquisition, alternative investments, Capital Square, Delaware statutory trust, DST, limited liability company, opportunity zone, private placement, real estate, real estate assets, real estate investment, Reg D, Regulation D

Capital Square, a sponsor of Delaware statutory trust and other private placement offerings, announced the sale of Komar Desert Center, a Costco shadow-anchored retail center located in the Palm Springs suburb of La Quinta, California.

According to the company, the property was owned by a group of investors in a Capital Square-sponsored Delaware statutory trust who realized a 146.60% total return, or a 5.26% annualized return, from their 1031 exchange investment.

“In spite of the pandemic with mandatory shutdowns and resultant tenant issues, this Costco shadow-anchored retail center remained stable, fully operational and profitable throughout the holding period,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “While best known currently for sponsoring multifamily properties, the Capital Square team also has expertise with retail properties such as Komar, along with medical and industrial properties. The successful management and sale of this property is a testament to the team at Capital Square.”

Since 2018, Capital Square has taken 27 DST offerings full-cycle that have resulted in an average 171.59% total return and an average 13.40% internal rate of return.

Constructed in 2008, Komar Desert Center includes exposure with 900 feet of lineal frontage and a signalized intersection along Highway 111 that averages nearly 60,000 motorists daily. The property is approximately three miles south of Interstate 10. Also located near the property are the Rancho La Quinta Country Club Homes, the fully occupied Coral Mountain Apartments, and the Desert Sands Unified School District.

“The sale of Komar Desert Center resulted in an attractive total return to our DST investors, who realized cash flow and appreciation on their equity investment,” said Whitson Huffman, co-chief executive officer. “This is the twenty-seventh DST program Capital Square has taken full-cycle, and we are extremely pleased to have once again delivered a compelling result to our investors.”

Since its founding in 2012, Capital Square has acquired 170 real estate assets for over 6,500 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.

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