Capital Square, a sponsor of tax-advantaged real estate investments and developer of multifamily communities, announced that the firm has surpassed $3 billion in fundraising for its investment programs since formation in 2012.
Capital Square has consistently ranked in recent years as one of the leading equity raisers among sponsors of Delaware statutory trust investment programs for investors seeking the advantages of Internal Revenue Code Section 1031 exchanges. The firm has also sponsored several qualified opportunity zone funds, development LLCs and Capital Square Apartment REIT, a real estate investment trust that invests in multifamily communities throughout the Southeast.
“This milestone reflects the diversification of Capital Square’s investment offerings,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “When Capital Square was formed in 2012, DST programs for 1031 exchange investors were our sole investment focus. Starting in 2019, we began to sponsor opportunity zone funds and further diversified our investment offerings with development LLCs and Capital Square Apartment REIT, a real estate investment trust that invests in multifamily communities. This diversified product line has led to over $3 billion of equity raised in 132 investment offerings.”
Capital Square has completed more than $7.5 billion of real estate transactions on behalf of its investors and currently manages a $6.9 billion portfolio of real estate assets located throughout the U.S. The firm reported that it has taken 19 Delaware statutory trust programs full-cycle, delivering an average annual total return to investors of 174.88% with an average internal rate of return of 14.22%.
Whitson Huffman, co-chief executive officer, added, “Capital Square prides itself on providing our investors with compelling investment opportunities that provide access to high quality real estate that can provide portfolio diversification, income and growth. Our continued success is testament to our ability to deliver on these goals and we appreciate the support we continue to receive from our investors and their financial advisors.”
As The DI Wire previously reported in March 2023, Capital Square announced the launch of Capital Square Living, a wholly owned subsidiary that will oversee all management functions of the company’s growing multifamily portfolio. Capital Square Living began the phased onboarding of communities in April and is in the process of internalizing management of the portfolio to include comprehensive property management services, for example, operations, maintenance, employee development and training, customer service, revenue management, marketing, budgeting, leasing and resident retention.
As of year-end 2022, Capital Square has sponsored 132 investment offerings comprised of 165 individual properties for the firm’s DST programs, qualified opportunity zone funds and the REIT.