Capital Square 1031 Acquires Fourth 55+ Manufactured Housing Community in Coastal Florida
November 30,2020
Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of Whispering Pines, a 301-homesite manufactured housing community in Kissimmee, a city in the Orlando metropolitan area. The property, exclusive to those ages 55 and older, was acquired for CS1031 Whispering Pines MHC, DST, a Reg. D private placement.
“This is Capital Square’s fourth acquisition this year of four- and five-star, age-restricted, manufactured housing communities in coastal Florida markets,” said Louis Rogers, founder and chief executive officer. “Capital Square is bullish on manufactured housing in Florida due to exceptionally strong demand from retirees and very limited supply for affordable senior housing.”
Located at 4658 Whispering Pines Blvd., the community is situated on approximately 61 acres of land. Whispering Pines is 99% occupied and has additional land with potential for the development of 50 new homesites. Capital Square intends to maximize the value of Whispering Pines by maintaining strong occupancy and increasing homesite rental rates to bring them closer to the market average over time.
Rogers added, “Manufactured housing communities are exceptionally stable and have very low operating expenses, making them an ideal investment for Capital Square’s 1031/DST program where investors are seeking stable returns and capital appreciation.”
CS1031 Whispering Pines MHC, DST seeks to raise $34.5 million in equity from accredited investors and has a minimum investment of $50,000.
“Due to the potential cash flow, lack of competitive new supply and positive tailwinds in manufactured housing, Capital Square has actively cultivated a deep bench of age-restricted communities in coastal Florida markets,” said Whitson Huffman, chief strategy and investment officer. “In addition, 10-year fixed-rate financing in the low to mid 2.0% range has allowed us to lock in very accretive financial leverage, thanks to Walker & Dunlop and Fannie Mae.”
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 construct as site-built homes.
Since the company was founded in 2012, Capital Square has acquired 118 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 and other investors seeking stable cash flow and capital appreciation.
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