Griffin Capital Company LLC has fully subscribed two 1031 exchange Delaware statutory trust offerings for multifamily properties located in Las Vegas, Nevada and Bedford, New Hampshire.
With a combined equity raise of $64.1 million, these two offerings represent the 24th and 25th tax-advantaged private placement offerings sponsored by Griffin Capital since 2004.
Under Griffin Institutional Property Exchange, an affiliate of Griffin Capital, the firm sponsors 1031 exchange offerings with a focus on Class A multifamily properties.
South Beach Apartments, located seven miles west of the Las Vegas Strip, was purchased for $62 million. The property is a newly constructed Class A, 220-unit apartment complex, located near major thoroughfares, retail and employment centers in Las Vegas. The total equity raised was $32.7 million.
Heritage on the Merrimack, situated on the Merrimack River in Bedford, New Hampshire, was purchased for $58.2 million, and recently underwent a $3.1 million renovation. The 240-unit property sits on a 27-acre site and is within close proximity to multiple employment hubs within the healthcare and technology sectors. The total equity raised was $31.4 million.
Griffin noted that recent demographic housing trends indicate that both the millennial and baby boomer demographic cohorts will continue to be renter-centric well into the foreseeable future. Based on this demand driver, as well as investor demand for the tax benefits provided by these transactions, the firm plans to continue with additional DST offerings within the multifamily real estate asset class.
“Although it is challenging in this market to find high quality properties that meet our rigorous standards, we expect to continue to acquire additional apartment communities located in fundamentally strong markets with structure attractive 1031 DST offerings and deliver them to our partners in the broker-dealer community,” said Kevin Shields, CEO of Griffin Capital.
Griffin Capital is headquartered in El Segundo, California with offices in Irvine, California, Phoenix, Arizona, and Greenwich, Connecticut. Founded in 1995, the firm has owned, managed, sponsored or co-sponsored investment programs encompassing more than $17.5 billion in assets.