The acquisition is for a DST investment offering that seeks to raise $34.5 million in equity from accredited investors
ORLANDO, Fla. (Nov. 30, 2020) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of Whispering Pines, a 301-homesite manufactured housing community in Kissimmee, a city in the Orlando metropolitan area. The property, exclusive to those ages 55 and older, was acquired for CS1031 Whispering Pines MHC, DST, a Reg. D private placement.
“This is Capital Square’s fourth acquisition this year of four- and five-star, age-restricted, manufactured housing communities in coastal Florida markets,” said Louis Rogers, founder and chief executive officer. “Capital Square is bullish on manufactured housing in Florida due to exceptionally strong demand from retirees and very limited supply for affordable senior housing.”
Located at 4658 Whispering Pines Blvd., the community is situated on approximately 61 acres of land. Whispering Pines is 99% occupied and has additional land with potential for the development of 50 new homesites. Capital Square intends to maximize the value of Whispering Pines by maintaining strong occupancy and increasing homesite rental rates to bring them closer to the market average over time.
Rogers added, “Manufactured housing communities are exceptionally stable and have very low operating expenses, making them an ideal investment for Capital Square’s 1031/DST program where investors are seeking stable returns and capital appreciation.”
CS1031 Whispering Pines MHC, DST seeks to raise $34.5 million in equity from accredited investors and has a minimum investment of $50,000.
“Due to the potential cash flow, lack of competitive new supply and positive tailwinds in manufactured housing, Capital Square has actively cultivated a deep bench of age-restricted communities in coastal Florida markets,” said Whitson Huffman, chief strategy and investment officer. “In addition, 10-year fixed-rate financing in the low to mid 2.0% range has allowed us to lock in very accretive financial leverage, thanks to Walker & Dunlop and Fannie Mae.”
According to the Manufactured Housing Institute, more than 22 million people live in manufactured housing communities nationwide. Manufactured housing is an asset class that addresses the nationwide housing affordability crisis since manufactured homes typically cost half as much to construct as site-built homes.
Since the company was founded in 2012, Capital Square has acquired 118 real estate assets for over 2,400 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.
About Capital Square
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, Capital Square has completed more than $2.3 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses.
- On December 1, 2020