Capital Square 1031 Delivers Investors 253% Return on Equity* by Taking Multifamily DST Full Cycle
RICHMOND, Va. (Oct. 22, 2020) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the sale of Candleglow Apartments, a 152-unit multifamily community near Tampa, Florida. The property was owned by a group of DST investors who realized approximately 253.31% total return on equity, or a 28.81% annualized return, from their 1031 exchange investment.*
Held for 5.3 years, the Candleglow Apartments DST delivered investors a 21.31% internal rate of return.
“Candleglow is a Class B apartment community near Tampa, Florida acquired for Capital Square’s 1031/DST exchange program,” said Louis Rogers, founder and chief executive officer of Capital Square. “The DST investment had a projected 10-year holding period in which to implement a value-add strategy to upgrade the property and increase the rents. Capital Square completed the value-add strategy in record time, only 5.3 years, thereby creating substantial income growth that drove buyers to pay a record price for the property. We are pleased to provide our investors with exceptional returns for this Section 1031 exchange investment.”
Capital Square has taken nine DST offerings full cycle since inception that have resulted in an average 12.75% annual return and an average 155.05% return on equity.
Candleglow Apartments, located at 1071 Candlelight Blvd. in Brooksville, Florida, is a garden-style community with 10 residential two-story buildings and a single-story clubhouse. Amenities include a resort-style pool, sundeck/lounge area, two tennis courts, barbecue area with grills, racquetball court, 24-hour laundry facility and pet walk area. Situated on approximately 10.2 acres of land, Candleglow Apartments includes 257 open parking spaces at a ratio of 1.69 spaces per unit.
Capital Square is completing a similar value-add strategy on Class B properties throughout the Southeast. Many of Capital Square’s investors are reinvesting on a tax-deferred basis under Section 1031 in Class A multifamily properties, such as the recent Elan Williamsburg in Williamsburg, Virginia and Promenade at Newnan Crossing in the Atlanta, Georgia metropolitan area. In this way, investors are completing Capital Square’s Class B to A strategy by exchanging their profits from older apartment communities for newly constructed communities in exceptional locations.
Since inception, 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.
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 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. In 2017, 2018, 2019 and 2020, 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.
*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.
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