Capital Square 1031 Acquires Multifamily Community with Value-Add Potential in Washington, D.C. Suburb
The acquisition is for a DST investment offering that seeks to raise $23.2 million in equity from accredited investors.
WASHINGTON, D.C. (Mar. 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.”
Gainesville is home to 48.3 million square feet of retail space, including The Grove at Gainesville, a 1-million-square-foot planned mixed-use, retail entertainment, hotel and office space development. Located in Northern Virginia, the city offers most residents a 45-minute commute to surrounding employers, including the planned Amazon HQ2 in Washington, D.C.
Since the company was founded, Capital Square has acquired 125 real estate assets for over 2,700 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.
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. Since 2012, Capital Square has completed more than $2.6 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. 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. Diversification does not guarantee profits or protect against losses.