Capital Square 1031 Acquires Multifamily Community with Value-Add Potential in Washington, D.C. Suburb
March 8, 2021
Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of SomerHill Farms, a 140-unit multifamily community in Gainesville, Virginia, a suburb of Washington, D.C. The property was acquired for CS1031 SomerHill Farms Apartments, DST, a Reg. D private placement.
“SomerHill Farms Apartments is next in Capital Square’s line of value-add multifamily communities for 1031 exchange and other investors seeking stable cash flow and capital appreciation,” said Louis Rogers, founder and chief executive officer of Capital Square. “The community is located in a dynamic and rapidly growing Northern Virginia suburb, just outside of Washington D.C., with robust population growth, strong rental increases, high barriers to entry, and exceptional job opportunities within commuting distance, including Amazon’s $2.5 billion HQ2 development.”
Located at 7351 Yountville Drive, the community is situated on 18.76 acres of land. Constructed in 2006, SomerHill Farms features six three- and four-story residential buildings and one clubhouse. The community includes one-, two- and three-bedroom units ranging in size from 786 average square feet to 1,446 average square feet. Amenities at SomerHill Farms include a clubhouse, outdoor pool, dog park, fitness center, tot lot and community garden.
CS1031 SomerHill Farms Apartments, DST seeks to raise $23.2 million in equity from accredited investors and has a minimum investment of $50,000.
“SomerHill is located in the ninth wealthiest county in the nation, with a projected 3.78% average annual rent growth from fiscal year 2022 to fiscal year 2023,1” said Whitson Huffman, chief strategy and investment officer. “SomerHill Farms is a prime example of a multifamily community with value-add potential. By improving the community through light unit renovations and amenity upgrades, Capital Square is able to raise the rent over time and increase the residual value of the property.”
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