Capital Square 1031 Launches Diversified DST Offering of Multifamily Portfolio in Georgia and South Carolina

Offering seeks to raise $38.9 million in equity from accredited investors

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Jan 23, 2020, 16:12 ET

AUGUSTA, Ga., Jan. 23, 2020 /PRNewswire/ -- Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 SE Apartment Portfolio, DST, which is raising $38.9 million in equity from investors seeking Section 1031 exchange replacement property and cash investors. The Regulation D private placement is comprised of four multifamily communities located in Aiken, South Carolina and Augusta, Georgia.

"This diversified portfolio of four Class B multifamily communities in thriving submarkets in Georgia and South Carolina is structured to provide quality real estate investment for exchangers seeking tax deferral under Section 1031 of the Internal Revenue Code and cash investors seeking stable cash flow and appreciation," said Louis Rogers, founder and chief executive officer of Capital Square 1031. "Because history has proven the value of diversification to reduce concentration risk, the offering has been structured to include four multifamily communities in different areas that offer a combined 640 units."

The 640-unit portfolio includes:

The Colony at South Park, a 184-unit, 174,800-square-foot multifamily community located at 101 Greengate Circle in Aiken,
Woodwinds Apartment Homes, a 144-unit, 165,188-square-foot multifamily community located at 100 Cody Lane in Aiken,
Bradford Pointe Apartments, a 192-unit, 155,907-square-foot multifamily community located at 100 Sterling Ridge Drive in Augusta, and
Westbury Creek Apartments, a 120-unit, 107,216-square-foot multifamily community located at 222 Boy Scout Road in Augusta.

"The portfolio was financed by Fannie Mae at a fixed interest rate of 3.38% for 10 years," said Seth Harris, executive vice president of investments. "With a debt service coverage ratio of 2.47, the portfolio is stable. Each property is located within a 20-mile radius of each other for efficiency of management. Also, the communities are well located near major employment centers with substantial job growth. Capital Square is bullish on the income and appreciation potential of the portfolio for these reasons."

The portfolio is located in the Augusta-Richmond County, GA-SC metropolitan statistical area, commonly known as the Central Savannah River Area. Amenities at each of the communities include a dog park, swimming pool, playground, grilling area, fitness center, clubhouse and more. The portfolio has an occupancy rate of 93.4%.

Taylor Bird and Robert Stickel of Cushman & Wakefield represented the seller in the transaction. Alexandra Huffman of Walker & Dunlop originated the Fannie Mae acquisition loans for the portfolio.

The communities are located in the Augusta-Richmond County, GA-SC metropolitan statistical area, the second largest in Georgia. Augusta, the county seat, is considered America's cybersecurity capital. Also, nearby is Fort Gordon, a major U.S. Army installation that employs 25,000 civilian, military and contractors in Augusta. Fort Gordon is home to the U.S. Army Cyber Center of Excellence, U.S. Army Signal Corps, the U.S. Army Cyber Command and the Georgia Cryptologic Center operated by the National Security Agency. The U.S. Army is expected to relocate the headquarters for Cyber Command (ARCYBER) to Fort Gordon by 2022.

Since inception, Capital Square has acquired 100 real estate assets for more than 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking cash flow and appreciation.

About Capital Square 1031

Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since inception, Capital Square has completed more than $1.85 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense's list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" and "Fantastic 50" reports. To learn more, visit www.CapitalSquare1031.com.

Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses.