Capital Square Delivers 156.19% Total Return* to Investors in Virginia Multifamily DST
RICHMOND, Va. (Feb. 08, 2024) – Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced today the sale of Summit at Bon Air Apartments, a 296-unit multifamily community in the Richmond suburb of Bon Air, Virginia. The property was owned by a group of investors in a Capital Square-sponsored Delaware statutory trust (DST) who realized a 156.19% total return, or a 10.05% annualized return, from their 1031 exchange investment.*
“In a challenging environment, Capital Square has exceeded expectations once again,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Summit at Bon Air Apartments was acquired, financed and managed by Capital Square’s team of experienced real estate professionals. And the property was sold at the optimal time to maximize returns for investors. This DST/1031 program is Capital Square’s 28th DST offering to go full-cycle resulting in an average 170.24% total return.”
Since 2018, Capital Square has taken 28 DST offerings full-cycle that have resulted in an average 170.24% total return and an average 13.11% internal rate of return.
Situated on more than 27 acres, Summit at Bon Air Apartments is located at 1701 Irondale Road and is comprised of 37 residential buildings. The community includes one-, two- and three-bedroom floorplans ranging in size from 872 square feet to 1,321 square feet. Community amenities include a business center, dog park, clubhouse, swimming pool, fitness center, playground and 550 parking spaces.
“The Summit at Bon Air offering was nothing short of a home run for our investors,” said Whitson Huffman, co-chief executive officer. “We acquired the property in a thriving location within the growing Richmond metropolis, secured attractive financing, and ultimately exited successfully in a challenging market, delivering attractive returns to another group of investors.”
Since its founding in 2012, Capital Square has acquired 170 real estate assets for over 6,500 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 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 $590 million. Since 2012, Capital Square has completed more than $7.8 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 seven 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.
*The “total return” 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. These numbers were not audited by a third-party firm. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieved 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 multifamily 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.
