CS1031 Palm Lake Club MHC

1031 Exchange & DST

4.5-star, 55+ lifestyle manufactured housing community with 126 total homesites. Palm Lake Club is 97.6% occupied as of January 2022.

Well-occupied, well-maintained property with upside potential to increase rents. With minimal rent escalations during the past 10 years, the average in-place lot rent is $539, roughly 37% below the submarket average rent of $860.¹ Capital Square intends to make $2.7 million of strategic improvements to the clubhouse, roadways, landscaping, amenities and lighting, significantly enhancing the quality of the property to increase occupancy, rents and residual value.

The property is near community shopping and outdoor amenities such as parks, golf courses and wildlife preserves. Proximity to U.S. Highway 1 and Interstate 95 connects the property to Vero Beach, while allowing additional access to Port St. Lucie, West Palm Beach and Boca Raton.

Sources: 1. Florida JTL Market Report May 2020 by Datacomp

Contact your financial advisor for more information and up-to-the-minute details on this offering.

*“Tax-Advantaged” refers to any type of investment that is either exempt from taxation, tax-deferred, or that offers other types of tax benefits. Capital Square is a national sponsor of investment opportunities that can provide such benefits via our 1031 exchange and opportunity zone offerings, among others. Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Palm Lake Club MHC, DST offering and member FINRA/SIPC. Capital Square and WealthForge 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 lease. 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.
There are various risks associated with owning, financing, operating and leasing commercial properties in Florida.
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.