Capital Square Multifamily Portfolio Reports 94.8% Occupancy at End of First Quarter 2023
June 20, 2023 | Capital Square
Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, reported multifamily operational results as of the close of the first quarter 2023.
Capital Square’s multifamily portfolio is comprised of 55 residential communities totaling nearly 14,000 units located primarily in the Southeastern United States, Texas and Tennessee. The portfolio’s occupancy increased by 1% to 94.8% at the close of the first quarter 2023 compared to the same period in 2022. The portfolio’s net operating income as a percentage of revenue totaled 64%, compared to a national average of 60.1%. Year-over-year revenue increased 10.7% versus average national growth of 9.7%.
The company’s multifamily portfolio increased from 44 properties totaling 11,130 units as of March 31, 2022 to 55 properties totaling 13,987 as of March 31, 2023. Average same store rent increased year-over-year from $1,484 to $1,560, an increase of approximately 5.1%.
“Capital Square’s multifamily portfolio is performing at an exceptionally high level. In spite of a global pandemic that shut major portions of the US economy, Capital Square has enjoyed exceptional occupancy and rent collection during and after the pandemic,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Housing is a necessity and there is still a shortage of quality housing in the markets in which Capital Square invests.”
In March, Capital Square announced the launch of Capital Square Living, a wholly owned subsidiary that will oversee all management functions of the company’s growing multifamily portfolio. Capital Square Living began the phased onboarding of communities in April and is in the process of internalizing management of the portfolio to include comprehensive property management services, for example, operations, maintenance, employee development and training, customer service, revenue management, marketing, budgeting, leasing and resident retention.
“Capital Square’s multifamily portfolio continued to perform exceptionally well during the first quarter of 2023, with high occupancy and rent growth that far exceeds the national average,” said Whit Huffman, co-chief executive officer. “The strength of our portfolio is a testament to our acquisition strategy in which we target highly amenitized properties in growing markets throughout the Southeastern United States.”
Note: National industry averages are provided by the National Multifamily Housing Council as of December 31, 2022.
About Capital Square
Capital Square is a vertically integrated 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 U.S., 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 $7.5 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 six 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. In 2023, Capital Square was recognized by the Richmond Times-Dispatch as one of the region’s “Top Work Places.” 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. Private placements are speculative. Diversification does not guarantee profits or protect against losses.
