Capital Square 1031 Launches All-Cash DST Offering of Industrial Facility
DAYTON, Ohio (Feb. 18, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 Midwest Industrial, DST, which seeks to raise $9.2 million in equity from investors seeking 1031 exchange replacement property and cash investors. The Reg. D private placement is comprised of a 146,278-square-foot corporate headquarters and manufacturing facility situated on three parcels of land in Tipp City within Greater Dayton, Ohio. The building was acquired by the DST in an all-cash, no debt, transaction.
“There is a strong demand for industrial properties leased on a long-term basis by strong manufacturing companies such as Creative Extruded Products,” said Louis Rogers, founder and chief executive officer of Capital Square. “This offering was structured on an all-cash, no debt, basis for investors who do not need or want debt for their Section 1031 exchange, thereby removing the risks created by a mortgage. Capital Square has sponsored all-cash DST offerings for many years to service the growing number of DST investors seeking this option for their investment portfolios.”
Located at 1414 Commerce Park Drive, 1420 Commerce Park Drive and 1455 West Main Street, the facility serves as a corporate headquarters for Creative Extruded Products, an original equipment manufacturer and aftermarket manufacturer of vehicle parts for the auto industry. Creative Extruded Products uses extrusion and injection molding to manufacture parts for vehicles, with a focus on windshield and back window moldings.
“This corporate headquarters and manufacturing facility was purchased on desirable economic terms, with annual rental increases and an absolute net lease where the tenant is responsible for all taxes, insurance, maintenance and repairs, thereby reducing future inflation risk,” said Whitson Huffman, senior vice president and head of acquisitions. “The combination of a favorable capitalization rate, annual rental increases and an absolute net lease make this a very desirable investment for Section 1031 exchange and other investors seeking potential for stable income without debt.”
Constructed in 1985, the facility is strategically located in an industrial corridor within the North Dayton submarket, which is home to the Interstate 70 and 75 interchange as well as the Dayton International Airport.
Since inception, Capital Square has acquired 104 real estate assets for more than 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
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 inception, Capital Square has completed approximately $1.9 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.