Capital Square is unique among real estate platforms for its value chain.
Capital Square operates within three distinct phases of real estate investments: development funds, Delaware statutory trusts (DSTs) / 1031 exchanges and a real estate investment trust (REIT). This value chain allows Capital Square to retain assets during their entire life cycle to potentially maximize investor returns.
Development funds
We develop multifamily and build-for-rent communities in the Southeast, Mountain West and other desirable markets, especially in qualified opportunity zones.
DSTs / 1031 exchanges
Capital Square may acquire the property upon stabilization at a fair market price.
REIT
When a DST property goes full-cycle, DST investors may have the option to structure a 721 exchange (UPREIT) with the REIT to obtain special REIT benefits.
While most real estate investors hold an asset for three to seven years, Capital Square helps investors retain assets for the long term, while moving the property through various investment platforms that cater to different investor preferences.
- Returns-oriented investors can invest solely in the development phase.
- Tax-conscience investors can invest in the DST phase.
- Investors looking to diversify risk with a steady dividend can invest in the REIT phase.
This value chain allows investors to remain with Capital Square for an asset’s entire life cycle, which reduces transaction costs and maximizes investor return potential.
“We wake up every day thinking about investors. It starts from the top and goes down to every one of our team members. We’re handling our investor’s generational wealth. We have a huge responsibility to our investors, and we honor that by giving white-glove service.”
Mark Mercado, Executive Vice President, Investment Programs & Operations
Property Audits
Every year, Capital Square engages independent auditors to conduct cash flow audits on DST properties. Capital Square has done this since the firm was founded in 2012 because transparency is fundamental to our investors-first business model. It is also one more way we provide an exceptional experience for every investor, aligning our processes with the relationship-driven service we always aim to provide. Not all DST sponsors audit their properties, but we deem this process a fundamental demonstration of the highest standards we strive to deliver.
Asset Types for Capital Square’s Real Estate Investments
Capital Square continues to focus its investments on U.S. housing solutions in the form of multifamily apartments, build-for-rent (BFR) single-family homes and manufactured housing communities (MHCs) in Florida. The company’s DST platform focuses on all three housing solutions, while our development initiatives and partnerships focus on multifamily and BFR.
For more information on our investment programs, please contact your financial advisor. Our investor relations team is also available to answer any questions you may have.
