Capital Square 1031 Delivers Over 222% Total Return* in a Multifamily DST
This sale represents the second-highest total return for a DST sponsored by Capital Square.
August 5, 2021 | Capital Square 1031
TUCSON, Ariz. (Aug. 5, 2021) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced the $32 million sale of Galeria del Rio, a 101-unit townhome community in Tucson, Arizona. The property was owned by a group of DST investors who realized 222.23% total return, or a 23.04% annualized return, from their 1031 exchange investment.*
This property generated the second-highest total return for a DST sponsored by Capital Square.
“Capital Square has proven its ability to buy, finance, manage and sell tax-advantaged real estate nationwide,” said Louis Rogers, founder and chief executive officer. “This is the twelfth offering Capital Square has taken full cycle, resulting in exceptional returns for investors. The sale of Galeria del Rio generated the second-highest total return for a DST sponsored by Capital Square, with over 222% total return. It’s not surprising that most investors reinvested their proceeds in a new DST sponsored by Capital Square to continue the tax deferral.”
Capital Square acquired the 11.5-acre property, located at 5132 N. Prairie Clover Trail, in March 2016. The property was originally acquired at an investment cost of $21.145 million. Galeria del Rio consists of 35 two-story buildings, with three- and four-bedroom townhome units. Each unit comes with 2.5 bathrooms, an attached two-car garage and a small private enclosed back yard. Property amenities include 24-hour controlled access, an outdoor swimming pool, a community roof deck area and a fitness center. Additional amenities include a community club room and 70 parking spaces.
Since formation, Capital Square has sponsored 101 investment offerings comprised of 132 Individual properties for over 3,300 investors across the nation. Capital Square has taken 12 of the DST offerings full cycle, resulting in an average 13.29% annual return and an average 162.89% total return.
“This is another step forward for many of our investors who are building family wealth by structuring a series of exchanges throughout their lifetimes,” added Rogers.
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.
*The “total return” represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested. The “annualized return” is defined as the difference between net sale proceeds and initial investment, plus the distributions over the holding period, divided by the initial investment; divided by the number of months; times 12. The ROE and annualized return are net of fees and represent a return to an individual investor. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieves in the past or that losses will not be incurred.
