Capital Square Delivers 184% Total Return to Investors Following DST Sale

Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities across the nation, has announced the sale of CSRA Grocery Portfolio I, DST. The fund included a portfolio of three grocery-anchored shopping centers in the Carolinas. Investors in the Delaware statutory trust realized a 184% total return from their 1031 exchange investment.

Since 2018 and as of March 12, 2025, Capital Square has completed 34 full-cycle DST programs, producing an average total return of 166.79% and an average internal rate of return of 12.14% for investors.

Since that date, four additional DST offerings, including CSRA Grocery Portfolio I, have been taken full cycle for a total of 38 DST offerings. Those averages, the company said, will be calculated in the future.

“Capital Square remains focused on delivering consistent, tax-advantaged returns through smart asset selection and proactive management,” said Louis Rogers, founder and co-chief executive officer. “CSRA Grocery Portfolio I is another example of the strong results our investment and asset management teams achieve through disciplined execution and unwavering commitment to excellence.”

The total return represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested.

CSRA Grocery Portfolio I, which became fully subscribed in March 2017, included the following assets:

• West Point Village, a 48,246-square-foot shopping center at 433 North Carolina Highway 49 South in Asheboro, N.C.;
• College Lakes, a 43,041-square-foot shopping center at 929 McArthur Road in Fayetteville, N.C.; and
• Kris Krossing, a 49,800-square-foot shopping center at 3320 4th Ave. in Conway, S.C.

All three centers are anchored by Food Lion, a leading supermarket brand serving the Southeastern and Mid-Atlantic United States.

“This full-cycle event exemplifies the strength of Capital Square’s investment strategy and the enduring appeal of 1031 exchange and DST programs,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “By targeting necessity-based retail assets in growing markets, we delivered a 184% total return to investors – highlighting the potential of DSTs to generate attractive risk-adjusted returns, defer taxes, and preserve capital. We’re proud to once again provide investors with a compelling outcome that reinforces the long-term value of tax-advantaged real estate investments.”

Previously, the company sold Mayton Transfer Lofts, a multifamily community in Old Towne Petersburg, Va., in an umbrella partnership real estate investment trust transaction at the beginning of 2025. That sale, completed on behalf of investors in CS1031 Old Towne Loft Apartments, DST, to Capital Square Housing Trust generated a 152% total return to investors.

More recently, Capital Square Glendale BFR, LLC, an offering by Capital Square became fully capitalized after raising more than $43 million in equity from investors. The Regulation D private placement, consisting of a 320-unit build-for-rent community in Glendale, Ariz.

Since its founding in 2012, Capital Square has acquired more than 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with opportunity zone funds and a real estate investment trust that acquires rental housing in the Southeast and Texas. In total, Capital Square has completed more than $7.9 billion in transaction volume and its mixed-used development projects total over 2,000 apartment units with a total development value in excess of $800 million.

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