CS1031 High Ridge Apartments, DST
Athens is a strong multifamily market: Occupancy over 95 percent. Rent growth of nearly 5 percent. Average household income of $60,926. With strict zoning requirements and scarcity of developable land in the area, limited new multifamily properties have been developed in Athens over the past 10 years.
High Ridge Apartments offers investors a significant opportunity to enter this high barriers-to-entry market. Situated in Athens-Clarke County, the property is close to Athens Perimeter 10, Highway 78 and Highway 129. Residents benefit from access to the region’s nature parks, entertainment venues, upscale shopping hubs and numerous dining options.
The property was acquired for $100,000 below the appraised value. The property has a track record of stable performance. Approximately $2 million in capital improvements have been made since 2013. The property is enrolled in Fannie Mae’s Green Financing Program, resulting in lower utility bills and a reduced interest rate.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 High Ridge Apartments, 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.
- The Interests are not freely transferable by the Beneficial Owners.
- There are various risks associated with owning, financing, operating, and leasing commercial properties in California.
- 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.
A 160-unit apartment community in desirable Athens, Georgia, with limited new construction delivered in the past 10 years