CS1031 Trails at Short Pump Apartments, DST
The Trails at Short Pump is a 350-unit multifamily community located in one of the most sought-after suburbs in Richmond, Virginia. The property has been well-maintained since its construction in 1989. The seller has invested approximately $1 million in exterior improvements over 2.5 years, including a clubhouse renovation, the addition of a package locker system, full exterior building repairs and more.
The average household income of property residents is $83,000 per year, representing a favorable income-to-rent ratio of 5.05x.1 The seller has completed interior renovations on approximately 25% of the apartment units, resulting in monthly rental premiums in excess of $250 on average. Capital Square will continue a similar value-add program to modernize most of the remaining un-renovated units, with the goal of realizing substantial rental growth and capital appreciation. Interior renovations include modern white cabinets, stainless-steel appliances, subway tile backsplash, hardwood-style floors, new fixtures and granite countertops.
Source: 1. Armada Analytics, 2022
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 Virginia.
- 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 The Trails at Short Pump Apartments, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
A 350-unit multifamily community located in one of the most sought-after suburbs of Richmond, Virginia