Capital Square Completes Trio of DST Offerings Raising Total of $234.4 Million
Capital Square, a sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, has fully subscribed three Delaware statutory trust offerings after raising a total of $234.4 million from accredited investors.
The company successfully completed CS1031 Parkland Apartments, DST, acquired and launched in January 2023; CS1031 Tapestry West Apartments, DST, purchased and launched in September 2022; and CS1031 Lyric at Norton Commons Apartments, DST, acquired and launched in October 2022. The offerings totaled $396 million in investment cost.
“The successful acquisition of these three Class A multifamily communities demonstrates Capital Square’s ability to deliver the highest quality replacement property at scale,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “These are some of the highest quality multifamily communities in very strong markets. DST investors were able to acquire investment-grade replacement property with favorable non-recourse financing for their Section 1031 exchanges.”
CS1031 Parkland Apartments, DST, owns The Villas at Ibis Landing, located at 5851 Holmberg Road in the Miami suburb of Parkland, Fla. The offering raised $105.7 million in equity from 249 accredited investors, including 156 repeat investors.
CS1031 Tapestry West Apartments, DST, owns Tapestry West Apartments, located at 2031 Maywill Street in Richmond, Va. The offering raised $60.7 million in equity from 160 accredited investors, including 114 repeat investors.
CS1031 Lyric at Norton Commons Apartments, DST, owns Lyric at Norton Commons Apartments, located at 11210 Peppermint Street in the Louisville suburb of Prospect, Ky. The offering raised $68 million in equity from 170 accredited investors, including 114 repeat investors.
“The full subscription of Capital Square’s Lyric, Tapestry and Parkland DST offerings demonstrates the compelling opportunity presented by these institutional-quality properties,” said Whitson Huffman, co-CEO and chief investment officer of Capital Square.
A total of 579 investors participated in the offerings. Some invested in two or three of the offerings, diversifying their real estate portfolios.
“Each DST provides the potential for passive ownership of institutional-quality real estate, non-recourse financing, a viable replacement property solution for 1031 exchange investors, and meaningful estate planning benefits, all while addressing the growing importance of portfolio diversification,” added Huffman.
Since its inception, Capital Square has acquired more than 175 real estate assets for over 6,500 investors, many of whom utilize the platform for Section 1031 tax-deferred exchanges. Previously reported by AltsWire this month, the company launched CS1031 Texas Active Living Portfolio I, DST. The $39 million Delaware statutory trust offering is designed for accredited investors seeking ownership in the build-for-rent active-adult housing sector.
Since 2012, Capital Square has completed more than $8.9 billion in transaction volume. Its mixed-use development projects total over 2,000 apartment units with a total development value in excess of $800 million, and Capital Square Living, the firm’s property management division, oversees more than 13,000 apartments across multiple states.
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