The acquisition is for a DST investment offering that seeks to raise $76 million in equity from accredited investors
ORLANDO, Fla. (Dec. 17, 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 The Falls, a 599-homesite manufactured housing community in Ormond Beach, a principal city within the Deltona-Daytona Beach-Ormond Beach Metropolitan Statistical Area. The property, exclusive to those ages 55 and older, was acquired for CS1031 The Falls MHC, DST, a Reg. D private placement. Capital Square has acquired five four-and five-star, age-restricted manufactured housing communities in coastal Florida markets.
“This is Capital Square’s fifth and largest manufactured housing community (“MHC”) acquisition to date, closing out a record-breaking year despite the COVID pandemic,” said Louis Rogers, founder and chief executive officer. “Capital Square is bullish on manufactured housing communities in Florida, which are among the most desirable assets in the nation due to high occupancy, increasing rental rates, low operating costs and scarcity of quality communities. The acquisition of The Falls brings us closer to Capital Square’s goal of assembling a large portfolio of MHCs in coastal Florida markets to provide Section 1031 exchange and other investors with stable cash flow and the potential for substantial capital appreciation.”
Located at 1 Falls Way Court, the community is situated on approximately 141 acres of land. A five-star manufactured housing community, The Falls has maintained 100% occupancy for more than a decade. Capital Square intends to maximize the value of The Falls by maintaining the community’s strong occupancy and increasing homesite rental rates over the holding period.
CS1031 The Falls MHC, DST seeks to raise $76 million in equity from accredited investors and has a minimum investment of $50,000.
“The Falls is a large, five-star, 55+ age restricted MHC in the Daytona Beach area,” said Whitson Huffman, chief strategy and investment officer. “This quality community has been 100% leased for a decade and has top of market amenities. MHCs are extremely desirable and scarce with only ten new manufactured housing communities having been opened nationally over the past 20 years.”
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 because manufactured homes typically cost half as much to construct as site-built homes.
Since the company was founded, Capital Square has acquired 119 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 $2.4 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.