CS1031 Parkland Apartments, DST
Now paying 5% annual distribution rate!*
Parkland Apartments is a 396-unit, multifamily apartment community with a mix of garden-style apartments and townhome-style units, located on approximately 45.43 acres in the highly affluent community of Parkland, Florida. The property is one of only two apartment communities in the highly sought-after Parkland school district and is the only one with a Parkland address. The property has seen $9.4 million in capital improvements since 2018, which includes $6.8 million in interior renovations to all 396 units. This well-maintained community with mature landscaping includes two resort-style pools, a clubhouse, 24-hour fitness center, hammock garden, two outdoor kitchens and picturesque walking trails.
The Parkland submarket averaged effective rental increases over 20% between June 2021 and June 2022. Rent growth is projected to increase 6.4% in 2023 and to remain above 5% through 2027.¹
*Capital Square has established a special operating cash flow reserve for CS1031 Parkland Apartments, DST, enabling the trust to make additional monthly distribution of 0.50% which would translate to a 5.00% per annum to beneficial owners, increased from the 4.50% historically paid on an annual basis.
Sources: 1. RealPage, 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 Florida.
- 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 Parkland Apartments, DST offering and member FINRA/ SIPC. Capital Square and WealthForge are not affiliated.
Parkland Apartments is a 396-unit multifamily apartment community with a mix of garden-style apartments and townhome-style units, located on approximately 45.43 acres in the highly affluent community of Parkland, Florida.