Capital Square Launches Second Investment Offering of 55+ Lifestyle Manufactured Housing Community in Coastal Florida

LLC investment offering seeks to raise equity from accredited investors

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Sep 08, 2020, 09:47 ET

PORT CHAROLOTTE, Fla., Sept. 8, 2020 /PRNewswire/ -- Capital Square, a national investment sponsor specializing in tax-advantaged real estate offerings, announced today the launch of CS1031 Harbor View MHC, LLC. The offering is comprised of Harbor View, a 55+ age-restricted, lifestyle manufactured housing community on the Peace River waterfront in Port Charlotte, Florida.

"Capital Square is thrilled to launch its second 55+ lifestyle manufactured housing community investment in coastal Florida," said Louis Rogers, founder and chief executive officer of Capital Square. "There is a scarcity of manufactured housing communities in Florida, creating an imbalance of supply and demand."

Rogers added, "The community presents a value-add opportunity, with 38 vacant homesites out of 147 total homesites, and average homesite rent of only $448, approximately 33% less than the submarket average of $670."

Located at 24325 Harbor View Road, the community is situated on 26 acres of land and contains 147 homesites. Capital Square intends to maximize the value of Harbor View by increasing occupancy and homesite rental rates. The firm expects to update the property by adding a new community clubhouse and office, community center with resort style pool and a community dock. Plans are also in place to update signage, landscaping, roads, driveways, curbs and the riverfront beach area.

"This property is located on the Peace River, with several homesites on waterfront lots," said Whitson Huffman, chief strategy and investment officer. "Capital Square intends to make $4.5 million of strategic improvements to the community, significantly enhancing the quality and increasing occupancy, rents and property value."

Homesite rents increased 5.2% from May 2019 to May 2020 and 4.9% annually since 2014, for four- and five-star, 55+ comparable communities in Florida, with an average occupancy rate of 96%, as of May 2020.

According to the Manufactured Housing Institute, more than 22 million people live in manufactured housing communities nationwide. Manufactured housing is an asset class that addresses the nationwide housing affordability crisis since manufactured homes typically cost half as much to build as site-built homes.

Since inception, Capital Square has acquired 113 real estate assets for approximately 2,200 investors nationwide seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking cash flow and capital appreciation.

About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. To date, Capital Square has completed more than $2 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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 awarded by Inc. 5000 as one of the fastest growing companies every year for four consecutive years. In 2017 and 2018, the company was also ranked on Richmond BizSense's list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" and "Fantastic 50" reports. To learn more, visit www.CapitalSquare1031.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.