CS1031 Residence at Riverwatch Apartments, DST
Constructed in 2019, Residence at Riverwatch is a 260-unit, gated multifamily community in Augusta, Georgia.
The property’s location along the Augusta Canal differentiates it from all competitors in the market. The multifamily community consists of seven, four-story residential buildings, each with an elevator. Select units have panoramic views of the Augusta Canal and the Savannah River. The property has top-of-the-market interior finishes, including: granite countertops; stainless steel kitchen appliances; 10-foot or 12-foot ceiling heights; large kitchen islands with undermounted kitchen sinks; kitchen backsplashes; faux wood flooring in common areas; either a patio or balcony and washer and dryer appliances. The property successfully completed its lease-up and has continued to perform well since stabilization. There has been no unresolved delinquency related to the economic impacts of COVID-19.
The property has a waiting list of approximately 20 prospective residents. Units with tenants that have provided a notice to vacate upon lease expiration are almost completely pre-leased and at higher rents. The average rent increase was $135, or 9.8%, on the nine new leases signed in May compared to the previous lease rent. The property is located in a newly developed mixed-use community called Village at Riverwatch, which features Costco, Cabela’s, Riverwatch Cinemas and office space for Comcast and Delta Air Lines. A TopGolf location was recently developed in the community, and opened July 3, 2020. The location provides convenient access to all major local employers. Residence at Riverwatch is located directly off of Riverwatch Parkway, putting residents seven minutes from downtown. The property is minutes from the interchange for Interstate 20, providing access throughout Augusta as well as the Southeastern United States. The drive time on Interstate 20 to Atlanta, Georgia and Columbia, South Carolina is only two to three hours.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Residence at Riverwatch 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 Georgia.
- 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.
Constructed in 2019, Residence at Riverwatch is a 260-unit, gated multifamily community in Augusta, Georgia. The property’s location along the Augusta Canal differentiates it from all competitors in the market.