January 28, 2019
Leading sponsor of Delaware statutory trusts launched 10 offerings in 2018 and fully subscribed seven DSTs with 302 investors during the year.
Capital Square 1031, a leading real estate investment and management firm specializing in tax-advantaged Delaware statutory trust offerings, announced today that 2018 was a record year in which it completed over $250 million in real estate acquisitions and launching 10 new DST offerings. The company also took two DST offerings full-cycle, resulting in total investor returns of 172 percent and 149 percent.
“We are pleased with Capital Square 1031’s successes in 2018, especially our total acquisition volume, investor subscriptions and the ability to take two offerings full-cycle with exceptional returns to investors,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “This was Capital Square’s most successful year. Also, our future is primed for success with a growing pipeline of investment-grade real estate for 1031 exchange investors, including a large portfolio of multifamily communities, medical office properties and sale-leasebacks of industrial and headquarters facilities.”
In July, Capital Square sold Bridgeview Apartments, a 348-unit multifamily community in Tampa, Florida. The property was owned by a group of DST investors who realized over 172 percent total return of equity and nearly 15 percent annualized total return on equity from their 1031 exchange investments.
In November, Capital Square sold a portfolio of three manufactured housing communities in Indiana and Ohio. The portfolio was owned by a group of DST investors who realized 149 percent total return of equity and 11.26 percent annualized total return on equity from their 1031 exchange investments.
Additionally, Capital Square 1031 fully subscribed seven DST offerings comprised of 156 investors during 2018. A total of 302 investors participated in all Capital Square offerings within the 12-month period, investing over $100 million in new DST offerings.
Rogers added, “Capital Square structures its DST offerings in two ways, with and without debt, so that investors who need debt to satisfy Section 1031 exchange requirements have it, and those who are interested in all-cash transactions and do not need or want debt have options. It’s our mission to provide investors with turn-key real estate investments that have in place all the due diligence, acquisition, loan, tenants and real estate management. Capital Square aims to be the leading sponsor of Section 1031/DST replacement property in the nation.”
Capital Square’s 2018 acquisitions are comprised of approximately 438,000 square feet of office, industrial and medical office space and 1,151 multifamily units. The acquisitions include:
– a portfolio of nine medical office buildings 100 percent leased to investment-grade tenant Fresenius Medical Care in the states of Texas, Tennessee, New York, Michigan and Mississippi;
– a newly-constructed, 45,000-square-foot Class A corporate headquarters and office building in Jacksonville, Florida, 100 percent leased to Dream Finders Homes;
– a newly-developed, 5,100-square-foot medical office building 100 percent leased to Better Med Urgent Care in greater-Richmond, Virginia (structured as all-cash);
– Mayton Transfer Lofts, a 223-unit historic multifamily community in Old Towne Petersburg, Virginia;
– a 10,000-square-foot, newly-constructed memory care facility in the Houston suburb of Spring, Texas (structured as all-cash);
– Ivy Commons Apartments, a 344-unit, garden-style multifamily community in the Atlanta suburb of Marietta, Georgia;
– Summit at Bon Air, a 296-unit value-add multifamily property in the Richmond suburb of Bon Air, Virginia;
– an approximately 150,000-square-foot corporate headquarters and industrial facility in greater-Charlotte, North Carolina, 100 percent leased to Carolina Beverage Group;
– an approximately 150,000-square-foot corporate headquarters office building in the Charlotte, North Carolina suburb of Fort Mill, South Carolina, 100 percent leased to CompuCom Systems Inc. and
– Woodshire Apartments, a 288-unit value-add multifamily community in Virginia Beach, Virginia.
As of year-end 2018, Capital Square 1031 has sponsored 53 DSTs comprised of 70 individual properties and has completed approximately $940 million in transaction volume since inception.
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