Capital Square Acquires Multifamily Community in Richmond for DST Offerings

The acquisition is on behalf of a Delaware statutory trust investment offering that seeks to raise $54.5 million in equity from accredited investors

RICHMOND, Va., July 19, 2022 /PRNewswire/ -- Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the acquisition of The Trails at Short Pump, a 350-unit apartment community in Richmond, Virginia. The community was acquired on behalf of CS1031 The Trails at Short Pump Apartments, DST. The acquisition of the property brings the total transaction activity of Capital Square to more than $6 billion since the company's inception in 2013.

"Capital Square continues to own the home court from northern Virginia, through central Virginia (Richmond and Williamsburg) to Tidewater with this latest acquisition in suburban Richmond, Virginia," said Louis Rogers, founder and chief executive officer of Capital Square. "This is Capital Square's twenty first acquisition of a Class A or B apartment community in Virginia. The region is experiencing exceptional stability, job production and rent growth."

Located at 3900 Acadia Lane, the 31.19-acre property offers one-, two- and three-bedroom units averaging 878 square feet. The spacious floorplans include high-end finishes such as modern white cabinets, stainless-steel appliances, subway tile backsplash, hardwood-style floors, new fixtures and granite countertops. Community amenities include a clubhouse, fitness center, recreation center, swimming pool with a sundeck, grilling area, tennis court, package lockers and an expansive dog park.

Residents of The Trails at Short Pump have access to 32 million square feet of retail and office space within a five-mile radius of the property. West Broad Village, a premier mixed-use town center with a variety of retail, dining and entertainment options, sits adjacent to the property. Innsbrook, a six million square foot business park home to several major employers, is less than three miles from the property.¹ Easy access to Interstate 64 connects residents to additional major employment centers in the region.

The property is located in Three Chopt, one of Richmond's most affluent submarkets, which features average household incomes in excess of $100,000 and an occupancy rate of 95.3%.^2,3 Projected rent growth for the submarket is 11% for the next 12 months.⁴

"The Trails at Short Pump is ideally located in the midst of one of the most affluent neighborhoods in Richmond and provides residents with easy access to major employment and retail centers," said Whitson Huffman, chief strategy and investment officer. "The property typifies the value-add, amenity-rich multifamily properties that Capital Square seeks to bring to its investors."

A new Amazon Robotics Center is currently under construction just 20 minutes from the property. Once completed, the Amazon location will add 1,000 high-paying jobs while working to enhance Richmond's emerging tech and logistics center.⁵ Further south of the property, in Chesterfield County, The LEGO Group is investing more than $1 billion to build a 1.7 million-square-foot plant on 340 acres. The company anticipates hiring 1,760 employees at the faacility.⁶ Additionally, CoStar announced their intentions to build a $460 million corporate campus, bringing an anticipated 2,000 jobs to the Richmond MSA.⁷

CS1031 Trails at Short Pump, DST seeks to raise $54.5 million in equity from accredited investors and has a minimum investment requirement of $50,000.

Will Mathews and Tommy Leachman of Colliers represented the seller in the transaction.

Since its founding in 2012, Capital Square has acquired 150 real estate assets for over 6,000 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.

Sources: 1. https://innsbrook.com/about-us/our-story/ | 2. Colliers International Group, Inc | 3. Yardi Matrix | 4. Yardi Matrix | 5. https://richmondbizsense.com/2021/04/21/breaking-news-amazon-planning-robotics-fulfillment-center-near-richmond-raceway/ | 6. https://www.globest.com/2022/06/21/lego-puts-its-first-us-manufacturing-plant-in-virginia/ | 7. https://www.virginiabusiness.com/article/costar-group-to-open-460m-campus-in-richmond/

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 $6.0 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.

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.

SOURCE Capital Square