Ashford Townes BFR Housing, DST
Ashford Townes is a new build-for-rent 74-unit townhome community in Raleigh MSA’s affluent Fuquay-Varina submarket. The nation’s largest homebuilder by volume, D.R. Horton, completed the community in 2022. Modern units boast open floor plans that average 1,693 square feet with smart-home technology, stainless steel appliances, quartz countertops, high vaulted ceilings, built-in window blinds, spacious walk-in closets, in-unit full size washer-dryers, attached one-car garages, private patios and outdoor storage. The property will soon feature a dog park as well.
Rent growth was approximately 13% in the Fuquay-Varina submarket and approximately 15% in Raleigh-Durham as a whole in 2022. Rents are forecasted to grow on average 3.5% each year for the next five years in the Fuquay-Varina submarket and 3.75% in Raleigh-Durham.1
The “Research Triangle” region, encompassing the Raleigh-Durham- Cary, North Carolina CSA, is home to over two million residents and is one of the fastest-growing metropolitan areas in the country.2 Capital Square’s basis at $339,000 per unit ($200 per square foot) represents a $64,000 per unit ($12 per square foot) discount to Fuquay-Varina townhome based comparable properties.3 Resident household incomes average $106,500, with leading employers including University of North Carolina at Chapel Hill, Novartis, IQVIA, JLL and Duke Energy. Ashford Townes is one of five purpose-built rental communities currently available within the Raleigh MSA.
1 Yardi Matrix, 2023.
2 United Nations Population Division, 2022.
3 Northmarq, 2022.
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 North Carolina.
• The Interests are not freely transferable by the Beneficial Owners.
• 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.
*“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 brokerdealer for the CS1031 Ashford Townes BFR Housing, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
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LocationRaleigh MSA, NC
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Overview
A new, 74-unit build-for-rent (BFR) townhome community in the Raleigh, North Carolina MSA’s affluent Fuquay-Varina submarket
