Capital Square 1031 Takes DST Full-Cycle, Resulting in Nearly 170 Percent Return on Equity to Investors*
TALAHASEE, Fla. (June 5, 2019) – Capital Square 1031, a leading real estate investment and management firm specializing in Delaware statutory trust (DST) offerings, announced today the sale of Ashford Club Apartments, a 103-unit multifamily community in Tallahassee, Florida. The property was owned by a group of DST investors who realized approximately 170 percent total return on equity, or an 11.74 percent annualized return, from their 1031 exchange investment.
The property was originally purchased for $8,000,000 in May 2013 and sold for $11,385,000.
“In less than one year, Capital Square has taken five DST offerings full-cycle for investors, resulting in an average annualized return rate of 14.51 percent and an average 155.92 percent total return on equity,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “Most investors in the full-cycle DST programs have reinvested in a new Capital Square DST to continue their tax deferral under Section 1031. We are very pleased to have successfully executed our strategy to source, acquire and sell exceptional properties and provide investors with the many advantages of DST offerings during their acquisition, holding period, sale and reinvestment in a new DST property.”
Located at 2055 Thomasville Road in the affluent neighborhood of Betton Hills, the asset includes five three-story buildings with one- and two-bedroom units ranging in size from 750 to 1,000 square feet of space with private patios and balconies. Property amenities include a clubhouse equipped with a full kitchen, fireplace and wet bar, a swimming pool and spa with a sundeck and Wi-Fi, indoor climate-controlled racquetball court, tennis court, playground, dog park, resident business center and full fitness center.
Mike Waddell, president of Capital Square 1031, added, “The Capital Square team is gratified to see another full-cycle DST offering produce such strong results for our DST investors. This investment program included an extremely well-located multifamily property that performed admirably over its holding period, allowing Capital Square to maximize returns for investors.”
Since inception, Capital Square has acquired 82 properties for approximately 1,600 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
Capital Square 1031 is a national real estate investment and management company that sponsors investment-grade real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The company acquires multifamily properties for substantial growth possibility, necessary medical properties for the potential for stable income, and other real estate investments that have the potential to provide exceptional risk-adjusted returns.
Capital Square provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net-worth investors, private equity firms, family offices and institutional investors. Since inception, the firm has sponsored 58 DST programs and has completed approximately $1.3 billion in transaction volume. To learn more, visit www.CapitalSquare1031.com.
Disclaimer: Investing in real estate involves significant risk and is suitable only for investors who have adequate financial means, desire a relatively long-term investment, who will not need immediate liquidity from their investment and can afford to lose their entire investment. There are various risks associated with owning, financing, operating, and leasing commercial properties. If the tenant does not renew or extend the lease, or terminates or defaults on the lease, the operating results of the Property could be adversely affected by the loss of revenue and Beneficial Owners could lose the benefits of Section 1031. Other risks include potential environmental conditions at the property, changes in economic conditions, changes in the investment climate for real estate investments, new competition, changes in the demand from competing properties, changes in local market conditions, changes in lease-up periods, changes in real estate tax rates and other operating expenses. There can be material tax consequences and prospective investors should consult their own tax advisors to evaluate the tax consequences of a DST interest. This is neither an offer to sell nor a solicitation of an offer to buy a DST interest. Offers are made solely pursuant to the Confidential Private Placement Memorandum. Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square 1031 and WealthForge Securities are not affiliated.
*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 ROE represents 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.
