Capital Square Acquires Class A Multifamily Community in Houston for DST Offering
May 5, 2022 | Capital Square
The acquisition is on behalf of a Delaware statutory trust investment offering that seeks to raise
$56.5 million in equity from accredited investors
Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of mixed-use multifamily communities, announced today the acquisition of a Class A, 304-unit multifamily community in Houston, Texas. The community, developed by Wood Partners, LLC, was acquired on behalf of CS1031 Houston Apartments, DST, a Delaware statutory trust offering for Section 1031 exchange and other (cash) investors.
“Capital Square sponsors the highest quality, newly constructed Class A apartment communities in the nation for the DST/1031 investment program,” said Louis Rogers, founder and chief executive officer of Capital Square. “CS1031 Houston Apartments is the latest DST offering that sets the highest standards with unrivalled amenities and best-in class quality.”
Located at 3623 W Alabama St., Houston Apartments offers studios, one-, two-, and three-bedroom units with best-in-class finishes. Community amenities include a: resort-style swimming pool with a tanning deck; 24-hour, state-of-the-art fitness center; sky lounge, complete with a kitchen, pinball machine, and outdoor seating with a fireplace; coworking concept spaces; pet spa; courtyard with outdoor living area and fountain; and club area with high-definition televisions, billiards table, lounge seating, and an entertainment kitchen.
Houston Apartments is in the midst of some of the city’s wealthiest neighborhoods. According to CoStar, the average annual household income within a three-mile radius of the property is in excess of $163,000, while the property’s submarket has experienced robust year-over-year rent growth of approximately 9.5% since the beginning of 2021.
The property is within five miles of multiple retailers, restaurants and entertainment venues. It is also within close proximity of Interstates 610 and 69, allowing residents easy access to Greater Houston and the surrounding region.
“Houston Apartments is an amenity-rich, luxury multifamily community located in the midst of one of Houston’s most exclusive neighborhoods where there is strong demand for apartments,” said Whitson Huffman, chief strategy and investment officer. “The property is ideal for affluent professionals who thrive on urban life and the upscale shopping, dining and cultural amenities that are provided in large cities like Houston.”
Home to 24 Fortune 500 companies and NASA’s Johnson Space Center, Houston is a thriving economic center and the unofficial capital of the U.S. oil and natural gas industry. Already the nation’s fourth most populous city, Houston continues to experience rapid growth, with its population swelling by nearly 10% between 2010 and 2020, according to the U.S. Census Bureau.
CS1031 Houston Apartments, DST seeks to raise $56.5 million in equity from accredited investors.
Since its founding in 2012, Capital Square has acquired 146 real estate assets for over 5,000 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, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $5.6 billion in transaction volume. 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.CapitalSq.com.
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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. Private placements are speculative.
