Capital Square Launches LLC Offering to Fund Development of Single-Family Build-For-Rent Community Near Phoenix
PHOENIX (August 1, 2023) – Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of housing communities, announced today the launch of Capital Square Glendale BFR, LLC. The LLC offering has been formed to raise approximately $49 million in equity from accredited investors to develop a 320-unit, build-for-rent single-family housing community in the Phoenix suburb of Glendale, Arizona. Capital Square has partnered with Sunstone Two Tree as co-developer of the project.
“Capital Square Glendale BFR is the next in a line of LLC offerings for investors seeking superior risk-adjusted returns from a real estate investment,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This is an exciting opportunity to invest in a high growth Southwest market with an experienced team of developers who are addressing the housing shortage by building much-needed single family homes for rent.”
Located along Loop 303, the 29-acre development will include a mix of 102 detached villas with three- and four-bedroom units averaging 1,655 square feet, and 218 townhomes with two- and three-bedroom units averaging 1,257 square feet. Property amenities will include a pool, spa, fitness center, pickleball courts, grilling pavilion, pocket parks, a dog run and a playground.
The property is located roughly four miles southeast of The Village at Prasada, an outdoor shopping center currently under construction, which will include a Sprouts Farmers Market, Ulta Beauty, TJ Maxx, Marshalls, PetSmart and other popular retail outlets. Residents will also have easy access to downtown Phoenix, Sky Harbor Airport and Luke Air Force Base. Adjacent to the property is Desert Diamond Casino, a $450 million, under-construction casino that is expected to be completed in 2024. The casino complex will employ approximately 1,300 people and feature a fine dining restaurant, food court, conference center and amphitheater.
“The Greater Phoenix single-family rental market has experienced significant growth in recent years. The influx of new employees from the rapidly developing community, including the $40 billion Taiwan Semiconductor Manufacturing Company production hub currently under development 40 minutes from the property, will further drive demand for quality housing options,” said Whitson Huffman, co-chief executive officer.
Phoenix is the 10th largest metropolitan statistical area in the U.S. with about five million residents1 and a top performing single-family rental investment market with rent growth of 30% since March 2020, the highest in the U.S.2 The Glendale industrial submarket has 16.3 million square feet of logistics space currently under construction, including a recently approved four million-square-foot logistics park along Loop 303 just north of the site in Glendale.3
Capital Square formed the Private Equity Group managed by experienced real estate executives, Dave Platter and Jon Trott, as managing directors and co-heads, to profit from opportunities in the housing market, including a dedicated build-for-rent (“BFR”) strategy in high growth sunbelt markets.
Sources: 1. Census, 2022. | 2. John Burns, 2023. | 3. Phoenix Business Journal, 2022.
About Capital Square
Capital Square is a vertically integrated national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern U.S., with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $7.5 billion in transaction volume. 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 six 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. In 2023, Capital Square was recognized by the Richmond Times-Dispatch as one of the region’s “Top Work Places.” To learn more, visit www.CapitalSq.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. Private placements are speculative. Diversification does not guarantee profits or protect against losses.