Capital Square Averages 136.42% Total Return* With Recent Sale of Virginia Multifamily DST Property
WASHINGTON, D.C. (Oct. 7, 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 Bellemeade Farms Apartments, a 316-unit multifamily property located in Leesburg, Virginia. The property was owned by a group of investors in a Capital Square-sponsored Delaware statutory trust (DST) who realized a 136.42% total return, or a 6.47% annualized return, from their 1031 exchange investment.*
Since 2018, Capital Square has taken 31 DST offerings full-cycle that have resulted in an average 168.45% total return and an average 12.95% internal rate of return.**
“This is another successful sale of a DST property,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “For 12 years, Capital Square has proven a track record of delivering stable returns and appreciation for DST investors.”
Located at 775 Gateway Drive SE, Bellemeade Farms is comprised of 12 residential buildings and a clubhouse with a leasing office. The community includes efficiently designed one- and two-bedroom floorplans ranging in size from 583 square feet to 954 square feet. Community amenities include a resort-style pool, outdoor grilling and entertaining area, resident lounge, club room, dog park and spa, tennis courts, 24-hour fitness center with a cardio studio and garden plots available to rent.
Situated on 15.74 acres of land, the community was originally constructed in 1988 and has had $2 million invested in maintenance, landscaping and common areas by prior institutional ownership over the last three years.
“By investing in the DST, Capital Square’s investors secured ownership of a large, producing multifamily property in one of the wealthiest counties with significant population growth and a high-ranking school district,” said Whitson Huffman, co-chief executive officer. “After five years of sponsoring and managing this investment offering, we are pleased to continue our successful track record and once again deliver a compelling result to investors by taking this DST full-cycle.”
Since its founding in 2012, Capital Square has acquired more than 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). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume. Capital Square’s mixed-used development projects total over 2,000 apartment units with a total development cost in excess of $800 million, and Capital Square Living, the firm’s property management division, now manages over 7,000 apartments across multiple states. 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. The company has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for eight consecutive years. Learn more at 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.
**The audited full-cycle DST track record was calculated as of March 4, 2024. Since that date, three additional DST offerings have been taken full-cycle for a total of 31 DST offerings. Those averages will be calculated the next time the brochure is updated.
Disclosure: 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. FINRA Broker Check link: https://brokercheck.finra.org/.
