Capital Square 1031 Acquires Newly Constructed, Luxury Multifamily Community in Downtown Chattanooga
September 23, 2021 | Capital Square 1031
Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of 17 Broad, a 158-unit, luxury multifamily community centrally located in downtown Chattanooga, Tennessee. The property was acquired on behalf of CS1031 17 Broad Apartments, DST, a Reg. D private placement investment offering.
“This is Capital Square’s fourth acquisition of a Class A apartment community in Chattanooga,” said Louis Rogers, founder and chief executive officer of Capital Square. “Capital Square is bullish on Chattanooga because the area is projected to have high occupancy and rent growth, according to Yardi Matrix, and was recently ranked number one in the nation for employment outlook by Forbes Magazine. Capital Square believes that Chattanooga is poised to become the ‘next Austin’ based on its many attributes, including its excellent location, only 130 miles from Atlanta and Nashville, substantial rent and area GDP growth, low cost of living, and high quality of life.”
Located at 1701 Broad St., the community was completed in 2020 and is situated on 1.6 acres of land. The property is conveniently located near numerous entertainment venues, cultural attractions and dining and beverage options.
Residents benefit from the property’s proximity to several of Chattanooga’s major employers, including Erlanger Health System, BlueCross BlueShield of Tennessee, Tennessee Valley Authority, Unum, McKee Food Corp., Volkswagen, CHI Memorial Hospital, Amazon, and more.
Community amenities include a fitness center; a heated, saltwater swimming pool; sky lounge with sweeping mountain views; a sundeck and a TV lounge. Additional amenities include a business center, barbecue and picnic area, a gated onsite parking garage, package receiving and a clubhouse.
CS1031 17 Broad Apartments, DST seeks to raise $18.465 million in equity from accredited investors and has a minimum investment requirement of $50,000.
“This highly amenitized property is in a walkable location, conveniently located near numerous employment options, entertainment venues, cultural attractions and dining and beverage options,” said Whitson Huffman, chief strategy and investment officer. “Among nearby entertainment venues is Finley Stadium, a 20,412-seat venue, which hosts sporting events and concerts. Completed in 2020, 17 Broad offers spacious floorplans and outstanding contemporary architectural design. Also, the property is conveniently located within half a mile of U.S. Route 27 and Interstate 24, in a downtown submarket of Chattanooga with high barriers to entry.”
Multifamily rents grew 9.2% year-over-year in July, according to the July 2021 Zillow Real Estate Market Report. Additionally, the monthly increase in the Zillow Observed Rent Index was the fastest ever observed by Zillow, since the company began tracking the data in 2015. Zillow estimates that the Zillow Observed Rent Index in July was 2.9% higher than what it would have been without the effects of the pandemic.
The property was sold by J.A. Murphy Group of Knoxville, Tennessee. Will Mathews, managing director and national platform leader of the Colliers Multifamily Advisory Group, represented both the seller and the buyer in the transaction.
Since its founding in 2012, Capital Square has acquired 136 real estate assets for over 3,300 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.
About Capital Square
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 2012, Capital Square has completed more than $3 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. 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. Private placements are speculative. Diversification does not guarantee profits or protect against losses.
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