CS1031 Summit Place BFR Housing, DST
Summit Townhomes is a new 120-unit build-for-rent community in Oak Ridge, Tennessee (Knoxville MSA) with a mix of three- and four-bedroom townhomes boasting high-end finishes, private backyards and attached garages.
D.R. Horton, the nation’s largest homebuilder by volume, built the community in 2022. The modern units boast open floor plans – averaging 1,439 square feet – with marble countertops, stainless steel appliances, full-size washer/dryers, walk-in closets, smart home integration and extra storage space. Capital Square’s basis at $270,000 per unit ($188 per square foot) represents a compelling discount relative to our average comp set of $350,000 per unit. Resident demographics include a median household income of more than $96,000 (vs. $58,296 in the submarket; a rent-to-income rate of 26%) and 100% collections to date.1
Source: 1. Yardi, 2023.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Summit Place BFR Housing, DST offering and member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are not affiliated.
Consider the Risks
An investment in the Interests involves substantial investment and tax risks, including, without limitation, the following risks:
• Past performance is not a guarantee of future results.
• The economic success of the Interests will depend upon the results of operations of the property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the property difficult or unattractive.
• The Master Tenant’s capitalization is supported solely by the cash flow from the underlying tenant leases. The Sponsor is not under any obligation to contribute capital to the Master Tenant.
• No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
• No assurance can be given that Beneficial Owners of Interests will realize a substantial return (if any) on their investment or that they will not lose their entire investment in the Trust.
• The Interests are not freely transferable by the Beneficial Owners.
• There are various risks associated with owning, financing, operating and leasing residential real estate in Oak Ridge, Tennessee.
• The Interests do not represent a diversified investment.
• Beneficial Owners must completely rely on the Master Tenant to collect the rent and operate, manage, lease, and maintain the property.
• The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the property.
• There are various conflicts of interest among the Trust, the Sponsor, the Signatory Trustee, and their Affiliates.
• The Interests are illiquid.
• There are tax risks associated with an investment in the Interests.
• There are risks related to competition from properties similar to and near the property.
• There may be environmental risks related to the property.
• Private Placements are speculative.
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LocationOak Ridge, TN
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Overview
A new 120-unit build-for-rent community in Oak Ridge, Tennessee (Knoxville MSA) with a mix of three- and four-bedroom townhomes.
