Capital Square 1031 Delivers 143.54% Return on Equity* to Investors in Richmond, Virginia-Based Multifamily DST
This is the 10th DST offering that the firm has taken full cycle since 2018
RICHMOND, Va. (Nov. 16, 2020) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced the sale of Perry Place, a 70-unit, loft-style multifamily community in Richmond, Virginia. The property was owned by a group of DST investors who realized approximately 143.54% total return on equity, or an 8.99% annualized return, from their 1031 exchange investment.*
“Held for less than five years, the Perry Place DST provided investors with stable cash flow during the holding period and capital appreciation on sale,” said Louis Rogers, founder and chief executive officer. “Capital Square acquires Class A and B multifamily properties for the 1031/DST program. The Class B properties are acquired with a value-add strategy to increase the rent and add value over the holding period by making strategic improvements. Capital Square completed the Perry Place improvements ahead of schedule and was able to exit early, with an approximately 143.54% total return on equity .”
Since 2018, the company has taken 10 DST offerings full cycle that have resulted in an average 12.51% annual return and an average 154.40% return on equity.
Located at 815 Perry St. within Richmond’s Manchester Arts District, Perry Place is situated on approximately 1.2 acres of land. The community has one-, two- and three-bedroom units with views of the James River and the downtown skyline. Property amenities include 24-hour controlled access, an outdoor swimming pool, a community roof deck area and a fitness center. Additional amenities include a community club room and 70 parking spaces.
Rogers added, “Most of the investors will continue their tax deferral under Section 1031 by reinvesting with Capital Square in either similar Class B multifamily properties with the value-add strategy or newly constructed, Class A multifamily properties that are the best communities in their submarket.”
Since the company was founded in 2012, Capital Square has acquired 117 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 and 2018, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.com.
*The ROE (“return on equity”) represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested. The “annualized return” is defined as the difference between net sale proceeds and initial investment, plus the distributions over the holding period, divided by the initial investment; divided by the number of months; times 12. The ROE and annualized return are net of fees and represent a return to an individual investor. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieves in the past or that losses will not be incurred.
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 November 16, 2020