ORLANDO, Fla. (Oct. 5, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced today the launch of CS1031 Maplewood Estates MHC, DST. The Regulation D private placement is comprised of Maplewood Estates, a 55+, age-restricted manufactured housing community containing 412 homesites in Port Orange, a suburb of Orlando, Florida.
“This is Capital Square’s third acquisition of a 55+, four- and five-star manufactured housing community in a coastal market of Florida,” said Louis Rogers, founder and chief executive office of Capital Square. “These are some of the most desirable assets in the country, highly sought after by institutional investors. No other sponsor has this asset class for both 1031 exchange investors using the DST structure and cash investors seeking superior, risk-adjusted returns using the LLC structure.”
CS1031 Maplewood Estates MHC, DST seeks to raise $38.6 million in equity from accredited investors with a minimum investment of $50,000.
Rogers added, “With a billion-dollar pipeline, manufactured housing investments have become a meaningful addition to Capital Square’s acquisition pipeline of Class A and B apartments, medical properties and industrial facilities with low investment minimums that permit investors to diversify to reduce concentration risk.”
Located at 1000 Chamberlin Blvd., Maplewood Estates is situated on 77 acres of land. The community is just minutes from the Intracoastal Waterway and the beach, within the affluent Deltona-Daytona Beach-Ormond Beach Metropolitan Statistical Area, as well as U.S. Highway 1 and Interstate 95.
“Maplewood Estates is well-maintained and 94.4% occupied as of September 2020,” said Whitson Huffman, chief strategy and investment officer. “Capital Square intends to make strategic improvements to the community, significantly enhancing the quality of the property. With current rents approximately 23% below submarket rates, there is great upside for investors.”
Manufactured housing homesite rents increased 5.2% from May 2019 to May 2020 and 4.9% annually since 2014, for four- and five-star, 55+ comparable communities in Florida, with an average occupancy rate of 96%, as of May 2020.
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 build as site-built homes.
The acquisition is Capital Square’s third manufactured housing acquisition in Florida this year. Florida has the third-largest population in the country and continues to grow, especially with retired persons seeking quality, affordable housing.
Since inception, Capital Square has acquired 114 real estate assets for approximately 2,200 investors nationwide seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking cash flow and capital appreciation. With the acquisition of this property for CS1031 Maplewood Estates MHC, DST, Capital Square has completed more than $2.2 billion in transaction volume.
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. To date, Capital Square has completed more than $2.2 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 awarded by Inc. 5000 as one of the fastest growing companies every year 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.
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.