Capital Square Launches Leveraged $10.4M DST Offering of Miami BFR Community
Capital Square, a sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, has launched CS1031 The Villages at Miami Gardens BFR Housing, DST – a Delaware statutory trust that owns The Villages at Miami Gardens, a 50-unit build-for-rent townhome community in the Miami suburb of Miami Gardens, Fla.
The offering is designed for accredited investors seeking Section 1031 exchange-eligible properties and aims to raise $10.4 million in equity, with a $50,000 minimum investment.
“The Villages at Miami Gardens is a desirable housing community with debt of approximately 54% for investors who need debt for their Section 1031 exchange,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “The Villages completes Capital Square’s DST portfolio of available properties: The Villages at Miami Gardens for exchangers who need debt; Texas Active Living for those who do not need debt and want an all-cash replacement property; and Zero Coupon DFW Hospitality for exchangers who need higher leverage.”
Located at 3400 NW 191st Street, the 98%-occupied community features three- and four-bedroom townhomes with high-end finishes, including porcelain and vinyl flooring, stainless steel appliances, in-unit stackable washer and dryer, white quartz countertops, European cabinetry, central air conditioning and recessed lighting. Each concrete-poured home also includes impact windows, elastomeric roofing, 8.5-foot ceilings, a private balcony, fenced backyard and two-car driveway, with additional street parking available.
The property is just two miles from Florida’s Turnpike and three miles from the Golden Glades Tri-Rail Station, providing convenient regional access. It is also only two miles from Hard Rock Stadium – home to the Miami Dolphins, University of Miami Hurricanes, Formula 1 racing and the Miami Open Tennis tournament – and one mile from Miami Gardens City Center, a $400 million, 35-acre mixed-use development and retail destination currently under construction.
The property is within a 25-minute drive of more than 935,000 jobs across major employment centers, particularly in the health and higher education sectors. Some major employers include Baptist Health, University of Miami, Jackson Health and American Airlines.
“Miami-Dade is a highly attractive and undersupplied market for build-for-rent housing. The Villages at Miami Gardens is just one of 12 build-for-rent townhome communities in the county and one of only seven delivered since 2021,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “This limited supply, paired with the property’s prime location near major transit routes, entertainment destinations and employment hubs, positions the property for strong long-term performance.”
The metro population has grown 9.5% over the past decade, making it one of the fastest-growing large markets in the United States. Since 2020, the region has attracted $4.6 billion in foreign investment and more than 50 corporate relocations, led by $1.5 billion in real estate and $1.3 billion in hotels and tourism.
The property is encumbered by a fixed rate loan with a 10-year term.
Last month, Capital Square announced the contribution of Marina Pointe, a 308-unit multifamily community in Chattanooga, Tenn., to Capital Square Housing Trust, a REIT sponsored by Capital Square. The transaction was completed through an umbrella partnership real estate investment trust, or UPREIT structure on behalf of investors in CS1031 Marina Pointe Apartments, DST, who contributed their DST interests to Capital Square Housing Trust’s operating partnership.
Since its founding in 2012, Capital Square has acquired more than 175 real estate assets on behalf of over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with others seeking stable cash flow and capital appreciation. 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. Capital Square Living, the firm’s property management division, now manages over 13,000 apartments across multiple states.
For more Capital Square news, please visit their directory page.
