Capital Square Fully Subscribes Project-Specific Opportunity Zone Fund

March 24, 2020

Capital Square Realty Advisors LLC, a sponsor of tax-advantaged real estate investments, has fully subscribed its project-specific opportunity zone fund, CSRA Opportunity Zone Fund I LLC.

The private placement offering raised $7 million to help develop Scott’s Collection I, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.

“Capital Square is gratified by the strong interest from investors in the Richmond area and nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “Scott’s Addition is truly a national story – an industrial area that is being transformed into a highly desirable live, work and play neighborhood.”

Located at 3000 – 3008 West Clay St., Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units, private balconies and a lobby area.

Situated on roughly half an acre of land, Scott’s Collection I will include a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces. The corner-lot property has views of the Scott’s Addition neighborhood and downtown Richmond.

Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with an approximately 98 percent occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone, and according to Yardi Matrix, apartment rental rates are projected to increase 3 to 4 percent per year for five years between 2020 and 2024.

Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

To read the full article, click here.

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Capital Square Fully Subscribes $7 Million Project-Specific Qualified Opportunity Zone Fund

March 23, 2020

Capital Square Realty Advisors, LLC, a leading sponsor of tax-advantaged real estate investments, announced today that CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund, has been fully subscribed by investors. The private placement offering raised $7 million to help develop Scott’s Collection I, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.

“Capital Square is gratified by the strong interest from investors in the Richmond area and nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “Scott’s Addition is truly a national story – an industrial area that is being transformed into a highly desirable live, work and play neighborhood.”

Located at 3000 – 3008 West Clay St., Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units, private balconies and a lobby area. Situated on approximately 0.54 acres of land, Scott’s Collection I will feature a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces. The corner-lot property has unobstructed views of the Scott’s Addition neighborhood and downtown Richmond.

“This project is well-positioned to deliver attractive risk-adjusted results for our investors during a uniquely challenging period for the American economy,” said Adam Stifel, executive vice president of development. “We are pleased to do our part by providing employment opportunities in our local community when we break ground early this summer.”

Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with an approximately 98% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone. According to Yardi Matrix, Scott’s Addition’s apartment rental rates are projected to increase 3% to 4% per year for five years between 2020 and 2024.

Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

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. Capital Square has completed approximately $1.9 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.

source https://www.capitalsquare1031.com/capital-square-fully-subscribes-7-million-project-specific-qualified-opportunity-zone-fund-2/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-fully-subscribes-7-million-project-specific-qualified-opportunity-zone-fund-2 source https://capitalsquare1031.tumblr.com/post/613420471135911936

Capital Square Fully Subscribes $7 Million Project-Specific Qualified Opportunity Zone Fund

RICHMOND, Va. (Mar. 23, 2020) – Capital Square Realty Advisors, LLC, a leading sponsor of tax-advantaged real estate investments, announced today that CSRA Opportunity Zone Fund I, LLC, a project-specific opportunity zone fund, has been fully subscribed by investors. The private placement offering raised $7 million to help develop Scott’s Collection I, a mixed-use multifamily property in the Scott’s Addition designated opportunity zone in Richmond, Virginia.

“Capital Square is gratified by the strong interest from investors in the Richmond area and nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “Scott’s Addition is truly a national story – an industrial area that is being transformed into a highly desirable live, work and play neighborhood.”

Located at 3000 – 3008 West Clay St., Scott’s Collection I is a single-structure, ground-up development that will include a five-story, Class A multifamily community with 80 units, private balconies and a lobby area. Situated on approximately 0.54 acres of land, Scott’s Collection I will feature a 3,700-square-foot, elevated courtyard and 65-70 onsite parking spaces. The corner-lot property has unobstructed views of the Scott’s Addition neighborhood and downtown Richmond.

“This project is well-positioned to deliver attractive risk-adjusted results for our investors during a uniquely challenging period for the American economy,” said Adam Stifel, executive vice president of development. “We are pleased to do our part by providing employment opportunities in our local community when we break ground early this summer.”

Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with an approximately 98% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone. According to Yardi Matrix, Scott’s Addition’s apartment rental rates are projected to increase 3% to 4% per year for five years between 2020 and 2024.

Opportunity zones were created to stimulate long-term private investments in low-income urban and rural communities nationwide, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

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. Capital Square has completed approximately $1.9 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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 are not affiliated. Opportunity Zone Fund Investments involve a high degree of risk. There are risks associated with acquiring, financing, owning, constructing, leasing and operating multi-family real estate located in Richmond, Virginia. Investor Units do not represent a diversified investment because each of the Opportunity Zone Funds’ activities will be limited to the Property. Although Capital Square and its affiliates have extensive experience in acquiring, improving and operating commercial real estate, Opportunity Zone Funds and the Manager were recently organized and do not have an operating history or significant assets. Investors will rely solely on the Manager to manage a particular Fund and the Property; the Manager will have broad discretion to make decisions regarding the Property. There are substantial risks associated with developing the Property in an economically disadvantaged, qualified opportunity zone that permits investors in a Fund to qualify for available Opportunity Zone Tax Benefits. A Fund may not make capital distributions until the sale or refinancing of the Property, if at all. Real estate related investments involve substantial risks. Funds will pay substantial fees to the Manager and its affiliates (including CS Development). The Investor Units will be highly illiquid; transferability of the Investor Units is restricted and withdrawals of capital contributions are prohibited. Substantial actual and potential conflicts of interest exist among the Funds, the Manager, Capital Square, CS Development and their affiliates. An investor could lose all or a substantial portion of his investment in any of the Funds. There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments may change.

source https://www.capitalsquare1031.com/capital-square-fully-subscribes-7-million-project-specific-qualified-opportunity-zone-fund/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-fully-subscribes-7-million-project-specific-qualified-opportunity-zone-fund source https://capitalsquare1031.tumblr.com/post/613420470497411072

Richmond developer raises $7M for apartment building in Scott’s Addition

Five-story building on West Clay Street will have 80 apartments.

March 23, 2020

Capital Square Realty Advisors LLC, a Henrico County-based real estate investment and management company, announced Monday that it has raised $7 million from investors for a five-story, 80-unit apartment building in the city’s popular Scott’s Addition neighborhood.

Scott’s Collection I, which will be located on a 0.54-acre lot at the corner of 3000-3008 W. Clay St. and Altamont Avenue, is being funded via a project-specific opportunity zone fund. Capital Square plans to break ground on the project this summer and the developer has previously said it would be ready for tenants in fall 2021.

“Capital Square is gratified by the strong interest from investors in the Richmond area and nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “Scott’s Addition is truly a national story – an industrial area that is being transformed into a highly desirable live-work-and-play neighborhood.”

Capital Square is also developing a six-story, 350-unit mixed-use apartment complex in Scott’s Addition on a city block bordered by Roseneath Road, Mactavish Avenue and West Moore and Norfolk streets. Capital Square Realty Advisors is raising $32.4 million towards the project, which will also be funded via an opportunity zone fund.

The Scott’s Collection I building is the first of three smaller Scott’s Collection buildings being developed by Capital Square in Scott’s Addition. Scott’s Collection II is a proposed five-story, 60-unit apartment building at 2900 W. Clay St., and Scott’s Collection III would be a 70-unit building at Moore Street and Altamont Avenue.

source https://www.capitalsquare1031.com/richmond-developer-raises-7m-for-apartment-building-in-scotts-addition/?utm_source=rss&utm_medium=rss&utm_campaign=richmond-developer-raises-7m-for-apartment-building-in-scotts-addition source https://capitalsquare1031.tumblr.com/post/613420470184886272

Capital Square 1031 Launches DST Offering of Texas Medical Portfolio

March 20,2020 Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 MOB TX VI DST, a Regulation D private placement offering comprised of two medical office buildings located in Corpus Christi, Texas. The buildings are leased to Covenant Physician Partners for a base term of 15 years on a triple net basis.

The offering seeks to raise $5.8 million in equity and has a $25,000 investment minimum.

“Medical real estate has historically demonstrated to be a recession-resistant investment,” said Louis Rogers founder and chief executive officer. “This is Capital Square’s sixth medical DST investment in Texas for Section 1031 exchange and other investors.”

He added, “Texas is a preferred location for investment due to the high level of growth driving demand for additional medical services and the absence of a state income tax, creating a friendly environment for out-of-state investors.”

The portfolio includes:

5721 Esplanade Drive, a 9,200-square-foot, Class A multi-specialty ambulatory surgery center built in 2015 and situated on 1.1 acres of land, and

6002 S. Staples Street, a 24,300-square-foot Class A ophthalmic clinic built in 2018 and situated on 1.5 acres of land.

“Purpose-built medical properties like Texas Eye Care are experiencing increased demand as a result of the aging population,” said Whitson Huffman, senior vice president and head of acquisitions. “Healthcare spending increased by 4.6 percent in 2018, which accounted for 17.7 percent of gross domestic product that year.

Each property is operated by Covenant Physician Partners, an acquirer and operator of ambulatory surgery centers, anatomic pathology laboratories, anesthesia entities and physician practices.

Capital Square specializes in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since inception, the company has completed approximately $1.9 billion in transaction volume.

To read the full article, click here.

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Capital Square 1031 Launches DST Offering of Texas Medical Portfolio

CORPUS CHRISTI, TX (March 19, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 MOB TX VI, DST, a Regulation D private placement for investors seeking tax deferral under Section 1031 of the Internal Revenue Code and cash investors seeking cash flow and appreciation potential. The offering is comprised of two medical office buildings located in Corpus Christi, Texas. The buildings are leased to Covenant Physician Partners for a base term of 15 years on a triple net basis.

“Medical real estate has historically demonstrated to be a recession-resistant investment,” said Louis Rogers founder and chief executive officer. “This is Capital Square’s sixth medical DST investment in Texas for Section 1031 exchange and other investors. Texas is a preferred location for investment due to the high level of growth driving demand for additional medical services and the absence of a state income tax, creating a friendly environment for out-of-state investors.”

The portfolio includes:

• 5721 Esplanade Drive, a 9,228-square-foot, Class A multi-specialty ambulatory surgery center built in 2015 and situated on 1.08 acres of land, and • 6002 S. Staples Street, a 24,264-sqaure-foot Class A ophthalmic clinic built in 2018 and situated on 1.501 acres of land.

“Purpose-built medical properties like Texas Eye Care are experiencing increased demand as a result of the aging population,” said Whitson Huffman, senior vice president and head of acquisitions. “Healthcare spending increased by 4.6% in 2018, which accounted for 17.7% of gross domestic product that year.* We view this acquisition as an excellent investment that capitalizes on these trends, bolstered by a 15-year triple net lease.”

Each property is operated by Covenant Physician Partners, a leading acquirer and operator of ambulatory surgery centers, anatomic pathology laboratories, anesthesia entities and physician practices. Backed by KKR & Co. Inc., a market-leading private equity firm, the company provides gastrointestinal and ophthalmic procedures through 47 ambulatory surgery centers and a variety of physician practices located across 17 states. The firm was founded in 2008 and is headquartered in Nashville, Tennessee.

Collin Hart of ERE Healthcare Real Estate Advisors represented the seller in the transaction.

Since inception, Capital Square has acquired 106 real estate assets for more than 2,000 investors nationwide seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeing cash flow and appreciation potential.

About Capital Square 1031 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 approximately $1.9 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.

*Source: Centers for Medicare & Medicaid Services

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.

source https://www.capitalsquare1031.com/capital-square-1031-launches-dst-offering-of-texas-medical-portfolio/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-1031-launches-dst-offering-of-texas-medical-portfolio source https://capitalsquare1031.tumblr.com/post/613039829835448320

Inside the Network of JBG Alumni Working Together Across the D.C. Real Estate Industry

March 16, 2020 When seeking a capital partner for a new project in Richmond, John Clarkson, a former JBG executive who now leads the Mid-Atlantic region for Greystar, decided to tap the wide network of professionals he worked with at his previous employer.

Clarkson reached out to Whitson Huffman, the head of acquisitions for Capital Square whom he worked with at The JBG Cos., which morphed into JBG Smith. The partnership, which also includes Greystar Senior Director and fellow JBG alumnus George Hayward, is planning to build a 350-unit multifamily project with retail in an opportunity zone in Richmond.

The partners say the deal was made easier because of the shared trust they developed while working together at one of the Washington region’s largest real estate firms.

“Right out of the gate, we’re already partners with a former JBG alum,” Clarkson said. “Our alumni base is not only embedded in the D.C. community, but they serve in very important roles within larger organizations that play a big role in the real estate world through the country.”

The Richmond deal is just one example of the power of the alumni network that has developed in recent years as former JBG deal-makers have spread throughout the real estate industry. At least 30 real estate professionals, from midlevel managers to high-level executives, have left the company in the nearly three-year span since The JBG Cos. merged with Vornado’s D.C. arm and became a publicly traded REIT, JBG Smith.

Some of these professionals say their decision to leave was directly tied to the merger, as the REIT structure changed the way the company operated and they sought more entrepreneurial opportunities. Others say it was a natural progression of their career that was unrelated to the merger.

While their reasons for leaving may differ, one thing is certain: These JBG alumni are not losing touch. Several former JBG professionals, in interviews with Bisnow, described a tight-knit group that texts and calls each other daily. These frequent conversations range from chatting about their families to asking for advice on challenges they are navigating in their new roles to pursuing joint venture partnerships and closing deals together.

“I bet you I talk to a JBG alumni every day,” said Washington Property Co. Vice President Quinn Rounsaville, who left JBG Smith in December 2017. “It’s almost like a co-ed fraternity. You call your brothers and sisters to bounce ideas off of them, and they’re people you trust.”

Former JBG Smith executives have founded multiple new companies in recent years and brought their old colleagues with them. Todd Rich co-founded Declaration Partners in 2018 and brought on former JBG colleagues including Ron Dalal and David Rabin. Rod Lawrence founded Network Realty Partners last year and hired multiple fellow JBG alumni, including John Simeon, Sam Hollman and Greg Trimmer.

People who departed JBG Smith in the last three years have joined established real estate companies of all sizes, including Greystar, Regency Centers, Grosvenor Americas, Nuveen, ASB Capital, Artemis Real Estate Partners, Redbrick LMD, MRP Realty, Washington Property Co. and Dweck Properties.

“We have always viewed JBG Smith as one big extended family that encompasses our current talented workforce as well as those who have gone on to do great things at other firms across the region,” a JBG Smith spokesperson wrote in an email to Bisnow. “It is especially gratifying when we are able to partner with JBG Smith alumni on new development, acquisition, and leasing opportunities.”

Moving On Multiple former JBG Smith employees say the company becoming a publicly traded REIT was a turning point for how the company operated. Some left because they didn’t want to work for a company with so much more corporate structure, while others say it was more about an opportunity arising that they couldn’t pass up.

As soon as JBG told its employees about the merger plans in 2016, Buji Tallapragada said he began thinking about other options for his career. He said he preferred the private company model in which senior-level employees served as partners, and didn’t want to work for a public company with a more traditional corporate structure.

“So JBG executed the transaction with Vornado, and when it became known to us internally that was happening, I made it known I probably would not be sticking around long-term under the new set-up,” Tallapragada said. “I preferred to do something more entrepreneurial at that stage of my career.”

Tallapragada and his JBG colleague Ashesh Parikh left in January 2018 to launch their own company, Lock Three Properties. They sought to make value-add multifamily acquisitions, but given the deluge of capital coming into that sector, they were unable to close any deals.

Eventually they folded Lock Three Properties and found jobs at established companies. Parikh joined Rubenstein Partners and Tallapragada became chief operating officer of Dweck Properties, a job he started earlier this month. He said the relationship he developed with Dweck while he was at JBG helped him land the executive position.

For Rounsaville, the public company model also seemed less appealing. He said having to convince stock market investors and analysts to support every deal a company pursues creates more hurdles and makes it harder to take risks. He joined WPC in January 2018 because he wanted to work for a private company with more flexibility. He said many of his former JBG colleagues made the same decision.

“There’s a big difference between JBG Cos. and JBG Smith in my opinion,” Rounsaville said. “There were a lot of people at JBG Cos. that valued the entrepreneurial spirit and deal-making and things that went along with that, and they believed a public company wouldn’t be able to do that. So they sought in their next employment opportunity something that they could build or join that was very similar to what it was at the JBG Cos.”

Chatham Financial Managing Director Brian Gould stayed at JBG Smith as director of capital markets until June 2019, but he ultimately decided that the REIT life wasn’t for him. Because public companies source financing differently and don’t pursue as many separate debt and equity deals, he said his team didn’t have as much work.

The JBG Smith capital markets team that was previously seven people is now less than half that, which Gould said is reasonable for the amount of work they have.

“When they no longer are looking to put debt on many of their buildings, it is really just less work for me and my department,” Gould said. “It’s one of those things where the moment they decided to go public, it was not shocking that a few years later it would make sense to part ways.”

Not all JBG alumni attributed their departure to the company’s public offering. Clarkson, who became the head of the Mid-Atlantic region for Greystar in May, said he couldn’t pass up such an attractive opportunity.

“At JBG, we worked independently within the framework of a larger company,” Clarkson said. “It’s very similar at Greystar, except that our group oversees just one region for an internationally focused organization. Our region is from New Jersey through Virginia, and we’re a smaller team of 12 people. So by the nature of leading a region, I have the autonomy to do the things I need to do to build our business.”

Huffman was drawn to the opportunity to take a larger role at another company, Capital Square. He said this is typical for a company like JBG, which has a history of investing in developing young talent.

“What you’re seeing is the natural progression of people who were given growth opportunities where they’re teaching you and mentoring you,” Huffman said. “At some point, other companies realize that’s where they want to hire from, and for people to continue to progress in their careers it makes sense to move on. It’s a natural progression of a business that invests in young people and makes them attractive to other companies.”

‘It’s A Tight Group’ As the talent that JBG developed has departed for bigger opportunities, it has created a web of former colleagues across the real estate industry that remain in close contact, seek advice and close deals together.

Gould, the sole member of Chatham Financial who works in the D.C. area, works in the same Bethesda office building — 4800 Hampden Lane — as several other former JBG colleagues. Companies with large ex-JBG contingents, including Declaration Partners, Boundary Cos. and Willard Retail, all work on the second and eighth floors of the building.

The close proximity and constant contact Gould keeps with former JBG colleagues has benefited his work at Chatham, advising commercial real estate owners on capital markets activities. Gould said a vast majority of the deals he has worked on at his new company have involved JBG alumni. He said he is currently working on a deal, the details of which he did not disclose, that includes five JBG alumni working on various development, acquisition and financing aspects.

“It definitely is an unofficial alumni network, and JBG has a very collaborative culture in general,” Gould said. “We all work closely together. We may not all be at the same shop anymore, but we can all still collaborate and help one another and know the skill set of each of us to get a deal done.”

When Tallapragada was trying to launch his own multifamily acquisitions firm, he said he frequently called former JBG colleagues to ask for advice and to bounce ideas for potential deals off them.

“There were people that I informally chatted with and kept them up to date on my progress,” he said. “If there were specific business issues I was wrestling with, I reached out to different people at different times kicking the tires on potential investments and trying to get different perspectives.”

Not only did his connections from JBG help him land the job at Dweck, but Tallapragada said he continues to tap the network as he adjusts to the new role. In his first 10 days, he said he set phone calls with two former JBG colleagues to ask their advice on specific issues on which he knows they have expertise. Additionally, he has a handful of other former JBG colleagues he keeps in touch with as friends that update each other on their lives.

“A number of people decided to go and do something different right around the same time I did, or soon thereafter, and it’s a tight group,” Tallapragada said. “There are a number of them I’ve stayed in touch with, asked for advice and remained good friends with.”

Huffman said he has also kept in touch with former JBG colleagues as friends whom he can call for advice. And the deal he closed with two former colleagues now at Greystar showed him the power of the network.

“I worked with John for a bunch of years at JBG Smith, and we knew he’d be a good fit because he knew the local market and we had a lot of experience working with each other, so it made sense to pair up,” Huffman said. “It was great because I know exactly what his capabilities are, I’ve seen the buildings he’s built, and that adds an additional layer of trust.”

Rounsaville also emphasized the trust factor, saying it is beneficial to have contacts throughout the industry who have already proven to him they can get the job done.

“There’s a whole lot of value in having a group of people I know, I know they’re smart, I know they know what they’re doing, and I don’t need to vet them,” Rounsaville said. “It’s really wonderful to talk to someone who’s been at JBG, and I know I’m talking to someone who has been through the life experience and training I went through.”

source https://www.capitalsquare1031.com/inside-the-network-of-jbg-alumni-working-together-across-the-d-c-real-estate-industry/?utm_source=rss&utm_medium=rss&utm_campaign=inside-the-network-of-jbg-alumni-working-together-across-the-d-c-real-estate-industry source https://capitalsquare1031.tumblr.com/post/612872284094480384

$32.4M apartment complex coming to Scott’s Addition

February 26, 2020

A $32.4 million, 350-unit apartment complex will be built in the Scott’s Addition neighborhood in Richmond, Glen Allen-based real estate investment group Capital Square 1031 announced Tuesday.

The project will be developed by CSRA/GS Opportunity Zone V LLC at 1601 Roseneath Road, which is a designated opportunity zone in the city — and the fourth new opportunity zone project in Scott’s Addition. CSRA/GS Opportunity Zone V LLC will need to raise the $32.4 million for the project from accredited investors. Opportunity zone funds are used for economic development via tax incentives in low-income urban and rural communities.

Sitting on 2.28 acres, the mixed-use development will be a six-story multifamily community with 15,000 square feet of retail space. There will also be 380 onsite parking spaces adjacent to the building development.

“Vendors have not yet been selected [for the retail space],” says Capital Square spokesperson Lauren Burgos. “The development team is seeking restaurants, dry goods, fitness and market-type retailers to fill the spaces. It’s a wonderful opportunity for businesses to have street-front space in a ‘Main and Main’ location.”

The project will be codeveloped by Capital Square and Charleston, South Carolina-based real estate company Greystar Real Estate Partners. Capital Square has previously developed the Scott’s Collection I, II and III apartment communities in Scott’s Addition, which range from 60 to 80 units.

“The Richmond market possesses substantial growth opportunity and will continue to be an important part of our long-term development strategy in the mid-Atlantic,” John Clarkson, Greystar’s managing director of development for the mid-Atlantic region, said in a statement. “Capital Square has a strong track record of successful project execution in Scott’s Addition, and together with the expertise of our local team of professionals, we look forward to providing future residents with attractive amenities at this Class A property.”

Expected to break ground during the last quarter of 2020 or the first quarter of 2021, the project will take approximately two years to complete, Burgos says.

Apartment rental rates in the Scott’s Addition neighborhood have increased 8.1% on a year-over-year basis. It’s expected that the rates will grow 3% to 4% each year during the next five years.

source https://www.capitalsquare1031.com/32-4m-apartment-complex-coming-to-scotts-addition/?utm_source=rss&utm_medium=rss&utm_campaign=32-4m-apartment-complex-coming-to-scotts-addition source https://capitalsquare1031.tumblr.com/post/612324372875706368

Capital Square Launches Project-Specific Opportunity Zone Fund to Develop Mixed-Use Multifamily Community in Richmond

March 4, 2020

RICHMOND, VA – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced the launch of CSRA/GS Opportunity Zone V, LLC. The project-specific opportunity zone fund is raising capital to develop 1601 Roseneath Road, a 350-unit multifamily community with ground-floor retail space, in the Scott’s Addition designated opportunity zone in Richmond, Virginia. CSRA/GS Opportunity Zone V, LLC seeks to raise $32,396,000 in equity from accredited investors.

“Capital Square is thrilled to enter this joint venture with Greystar Real Estate Partners to develop a Class A, mixed-use multifamily community in Scott’s Addition,” said Louis Rogers, founder and chief executive officer. “Greystar is the largest property manager in the nation as well as a top 10 builder and owner of apartment communities.”

Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.28-acre property will have 380 onsite parking spaces.

Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood. Apartment rental rates in the neighborhood have increased 8.1% on a year-over-year basis and are projected to increase 3% to 4% per year for five years.

The project will be co-developed by Capital Square and Greystar, a global leader in the investment, development and management of high-quality rental housing properties that is based in Charleston, S.C. The Greystar team is led by Todd Wigfield, senior managing director, John Clarkson, managing director, George Hayward, senior director, and Russell Whitworth, managing director.

“The Richmond market possesses substantial growth opportunity and will continue to be an important part of our long-term development strategy in the Mid-Atlantic,” said John Clarkson, Greystar’s managing director of development for the Mid-Atlantic Region. “Capital Square has a strong track record of successful project execution in Scott’s Addition, and together with the expertise of our local team of professionals, we look forward to providing future residents with attractive amenities at this Class A property.”

1601 Roseneath Road is Capital Square’s fourth new project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched a trio of developments – Scott’s Collection I, II and III – within a few blocks of the 1601 Roseneath Road project. The Scott’s Collection projects each feature a single-structure, ground-up development with Class A multifamily communities ranging in size from 60 to 80 units, and will include private unit balconies, a lobby area and onsite parking.

Opportunity zones were created by Congress to stimulate long-term private investments in low-income urban and rural communities, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

source https://www.capitalsquare1031.com/capital-square-launches-project-specific-opportunity-zone-fund-to-develop-mixed-use-multifamily-community-in-richmond/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-launches-project-specific-opportunity-zone-fund-to-develop-mixed-use-multifamily-community-in-richmond source https://capitalsquare1031.tumblr.com/post/612324373327642624

Capital Square Launches CSRA/GS Opportunity Zone V to Develop Mixed-Use Multifamily Community with Greystar in Richmond

RICHMOND, Va. (Feb. 25, 2020) – Capital Square, a leading sponsor of tax-advantaged real estate investments, announced today the launch of CSRA/GS Opportunity Zone V, LLC. The project-specific opportunity zone fund is raising capital to develop 1601 Roseneath Road, a 350-unit multifamily community with ground-floor retail space, in the Scott’s Addition designated opportunity zone in Richmond, Virginia. CSRA/GS Opportunity Zone V, LLC seeks to raise $32,396,000 in equity from accredited investors.

“Capital Square is thrilled to enter this joint venture with Greystar Real Estate Partners to develop a Class A, mixed-use multifamily community in Scott’s Addition,” said Louis Rogers, founder and chief executive officer. “Greystar is the largest property manager in the nation as well as a top 10 builder and owner of apartment communities.”1

Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.28-acre property will have 380 onsite parking spaces.

Established in 1901, Scott’s Addition is a historic area that is now the City of Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6% occupancy, according to Yardi Matrix. Scott’s Addition is a designated opportunity zone with a census tract that stretches across Virginia Commonwealth University and the Carver neighborhood. Apartment rental rates in the neighborhood have increased 8.1% on a year-over-year basis and are projected to increase 3% to 4% per year for five years.

The project will be co-developed by Capital Square and Greystar, a global leader in the investment, development and management of high-quality rental housing properties that is based in Charleston, S.C. The Greystar team is led by Todd Wigfield, senior managing director, John Clarkson, managing director, George Hayward, senior director, and Russell Whitworth, managing director.

“The Richmond market possesses substantial growth opportunity and will continue to be an important part of our long-term development strategy in the Mid-Atlantic,” said John Clarkson, Greystar’s managing director of development for the Mid-Atlantic Region. “Capital Square has a strong track record of successful project execution in Scott’s Addition, and together with the expertise of our local team of professionals, we look forward to providing future residents with attractive amenities at this Class A property.”

1601 Roseneath Road is Capital Square’s fourth new project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched a trio of developments – Scott’s Collection I, II and III – within a few blocks of the 1601 Roseneath Road project. The Scott’s Collection projects each feature a single-structure, ground-up development with Class A multifamily communities ranging in size from 60 to 80 units, and will include private unit balconies, a lobby area and onsite parking.

Opportunity zones were created by Congress to stimulate long-term private investments in low-income urban and rural communities, along with certain contiguous areas. Conceived as part of the Tax Cuts and Jobs Act of 2017, opportunity zone funds are intended to help foster economic growth by providing tax benefits to incentivize private investments in designated opportunity zones.

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. Capital Square has completed approximately $1.9 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.

About Greystar

Greystar is a leading, fully integrated real estate company offering expertise in investment management, development, and management of rental housing properties globally. Headquartered in Charleston, South Carolina, Greystar manages and operates an estimated $160 billion+ of real estate in nearly 200 markets globally including offices throughout the United States, UK, Continental Europe, Latin America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States,1 managing more than 525,000 units/beds, and has a robust institutional investment management platform with approximately $36.1 billion of assets under management, including nearly $14.2 billion of assets under development. Greystar was founded by Bob Faith in 1993 with the intent to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com.

Source: 1. National Multifamily Housing Council 2019 Rankings

Disclaimer: Securities offered through WealthForge Securities, LLC, member FINRA/SIPC. Capital Square, Greystar and WealthForge are not affiliated. Market information is provided for educational purposes and is general in nature. It may not predict the performance of the property. Opportunity Zone Fund Investments involve a high degree of risk. There are risks associated with acquiring, financing, owning, constructing, leasing and operating multi-family real estate located in Richmond, Virginia. Investor Units do not represent a diversified investment because each of the Opportunity Zone Funds’ activities will be limited to the Property. Although Capital Square and its affiliates have extensive experience in acquiring, improving and operating commercial real estate, Opportunity Zone Funds and the Manager were recently organized and do not have an operating history or significant assets. Investors will rely solely on the Manager to manage a particular Fund and the Property; the Manager will have broad discretion to make decisions regarding the Property. There are substantial risks associated with developing the Property in an economically disadvantaged, qualified opportunity zone that permits investors in a Fund to qualify for available Opportunity Zone Tax Benefits. A Fund may not make capital distributions until the sale or refinancing of the Property, if at all. Real estate related investments involves substantial risks. Funds will pay substantial fees to the Manager and its affiliates (including CS Development). The Investor Units will be highly illiquid; transferability of the Investor Units is restricted and withdrawals of capital contributions are prohibited. Substantial actual and potential conflicts of interest exist among the Funds, the Manager, Capital Square, CS Development and their affiliates. An investor could lose all or a substantial portion of his investment in any of the Funds. There are tax risks associated with an investment in the Investor Units, including the possibility that government regulations regarding Opportunity Zone investments may change.

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source https://www.capitalsquare1031.com/capital-square-launches-csra-gs-opportunity-zone-v-to-develop-mixed-use-multifamily-community-with-greystar-in-richmond/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-launches-csra-gs-opportunity-zone-v-to-develop-mixed-use-multifamily-community-with-greystar-in-richmond source https://capitalsquare1031.tumblr.com/post/610961956745117696

Capital Square Launches Project-Specific Opportunity Zone Fund

February 25, 2020

Capital Square Realty Advisors, LLC, a sponsor of tax-advantaged real estate investments, has launched CSRA/GS Opportunity Zone V LLC, a project-specific opportunity zone fund.

The fund seeks to raise nearly $32.4 million in equity from accredited investors to develop 1601 Roseneath Road, a 350-unit multifamily community with ground-floor retail space, in the Scott’s Addition designated opportunity zone in Richmond, Virginia.

“Capital Square is thrilled to enter this joint venture with Greystar Real Estate Partners to develop a Class A, mixed-use multifamily community in Scott’s Addition,” said Louis Rogers, founder and chief executive officer. “Greystar is the largest property manager in the nation as well as a top 10 builder and owner of apartment communities.”

Located at the intersection of two main thoroughfares in Scott’s Addition, 1601 Roseneath Road will be a six-story, Class A multifamily community with 15,000 square feet of retail space. The 2.3-acre property will have 380 onsite parking spaces.

Established in 1901, Scott’s Addition is a historic area that is now Richmond’s fastest growing neighborhood and the second-highest performing market with 97.6 percent occupancy, according to Yardi Matrix. Apartment rental rates in the neighborhood have increased 8.1 percent on a year-over-year basis and are projected to increase 3 to 4 percent per year for five years.

1601 Roseneath Road is Capital Square’s fourth new project in the Scott’s Addition designated opportunity zone. Previously, Capital Square launched three developments – Scott’s Collection I, II and III – within a few blocks of the 1601 Roseneath Road project.

The Scott’s Collection projects each include a single-structure, ground-up development with Class A multifamily communities ranging in size from 60 to 80 units, and will include private unit balconies, a lobby area and onsite parking.

To read the full article, click here.

source https://www.capitalsquare1031.com/capital-square-launches-project-specific-opportunity-zone-fund-2/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-launches-project-specific-opportunity-zone-fund-2 source https://capitalsquare1031.tumblr.com/post/610961957372264448

Plans underway for one of the biggest apartment buildings in Scott’s Addition

February 24, 2020

Plans are underway for one of the largest apartment complexes to be built in the Scott’s Addition neighborhood.

The 350-unit apartment building would take up most of a city block bounded by Roseneath Road, Mactavish Avenue and West Moore and Norfolk streets.

The six-story building would be across Roseneath Road from The Dairy Bar restaurant and across Moore Street from Väsen Brewing Co. and Stella’s Grocery gourmet market.

Plans for the unnamed development also call for 15,000 square feet of street-level retail space along with 380 parking spaces.

The project is being developed by a unit of Capital Square 1031, a Henrico County-based real estate investment and management company, and Greystar Real Estate Partners LLC of Charleston, S.C., which invests, develops and manages rental housing across the world.

“This will be a great addition to the neighborhood,” said Whitson A. Huffman, Capital Square’s senior vice president and head of acquisitions.

Construction would begin later this year or early 2021 and take about two years to complete, he said. The developers have filed a plan of development with the city, Huffman said.

The 2.28-acre property is under contract to be purchased, and that acquisition should be completed later this year, he said. The property is assessed for $2.75 million, according to the city’s online property records.

Part of the building was used by online grocer Relay Foods as its warehouse and fulfillment center until early 2017.

The total cost of the Roseneath project is still being finalized, Huffman said.

To pay for some of it, Capital Square Realty Advisors LLC plans to raise $32.4 million in equity under a federal tax-incentive program for investors. The company’s CSRA/GS Opportunity Zone V will begin a solicitation starting Monday from accredited investors.

Capital Square is developing three other apartment buildings in Scott’s Addition with a total of about 210 units and raising some of the money to pay for those projects under the same federal opportunity zones program.

That program, created as part of the federal tax overhaul in 2017, rewards investors with tax breaks for putting money earned from other investments back into businesses or real estate projects in more than 8,700 census tracts around the nation.

In the Richmond region, opportunity zones include census tracts covering land between Broad Street and Interstate 95 stretching from Scott’s Addition to VCU Medical Center.

“We love the Scott’s Addition neighborhood with all the buzz that’s going on there,” Huffman said.

To read the full article, click here.

source https://www.capitalsquare1031.com/plans-underway-for-one-of-the-biggest-apartment-buildings-in-scotts-addition/?utm_source=rss&utm_medium=rss&utm_campaign=plans-underway-for-one-of-the-biggest-apartment-buildings-in-scotts-addition source https://capitalsquare1031.tumblr.com/post/610961956292214784

Capital Square 1031 Launches All-Cash DST Offering of Industrial Facility

DAYTON, Ohio (Feb. 18, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 Midwest Industrial, DST, which seeks to raise $9.2 million in equity from investors seeking 1031 exchange replacement property and cash investors. The Reg. D private placement is comprised of a 146,278-square-foot corporate headquarters and manufacturing facility situated on three parcels of land in Tipp City within Greater Dayton, Ohio. The building was acquired by the DST in an all-cash, no debt, transaction.

“There is a strong demand for industrial properties leased on a long-term basis by strong manufacturing companies such as Creative Extruded Products,” said Louis Rogers, founder and chief executive officer of Capital Square. “This offering was structured on an all-cash, no debt, basis for investors who do not need or want debt for their Section 1031 exchange, thereby removing the risks created by a mortgage. Capital Square has sponsored all-cash DST offerings for many years to service the growing number of DST investors seeking this option for their investment portfolios.”

Located at 1414 Commerce Park Drive, 1420 Commerce Park Drive and 1455 West Main Street, the facility serves as a corporate headquarters for Creative Extruded Products, an original equipment manufacturer and aftermarket manufacturer of vehicle parts for the auto industry. Creative Extruded Products uses extrusion and injection molding to manufacture parts for vehicles, with a focus on windshield and back window moldings.

“This corporate headquarters and manufacturing facility was purchased on desirable economic terms, with annual rental increases and an absolute net lease where the tenant is responsible for all taxes, insurance, maintenance and repairs, thereby reducing future inflation risk,” said Whitson Huffman, senior vice president and head of acquisitions. “The combination of a favorable capitalization rate, annual rental increases and an absolute net lease make this a very desirable investment for Section 1031 exchange and other investors seeking potential for stable income without debt.”

Constructed in 1985, the facility is strategically located in an industrial corridor within the North Dayton submarket, which is home to the Interstate 70 and 75 interchange as well as the Dayton International Airport.

Since inception, Capital Square has acquired 104 real estate assets for more than 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.

About Capital Square 1031 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. Since inception, Capital Square has completed approximately $1.9 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.

source https://www.capitalsquare1031.com/capital-square-1031-launches-all-cash-dst-offering-of-industrial-facility/?utm_source=rss&utm_medium=rss&utm_campaign=capital-square-1031-launches-all-cash-dst-offering-of-industrial-facility source https://capitalsquare1031.tumblr.com/post/190915533974

Capital Square 1031 Launches All-Cash DST Offering of a 100% Leased Medical Facility in Augusta, Georgia

AUGUSTA, Ga. (Feb. 4, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the launch of CS1031 Augusta MOB, DST, a Regulation D private placement offering primarily for investors seeking 1031 exchange replacement property. The offering is comprised of a 30,548-square-foot orthopedic clinic in Augusta, Georgia, that was acquired by the DST in an all-cash, no debt, transaction.

“There is unprecedented demand for specialized medical facilities,” said Louis Rogers, founder and chief executive officer of Capital Square. “Because the need for medical services is not correlated to the general economy, medical properties have proven to be recession resistant. Capital Square’s medical properties are very popular among 1031 exchange and other investors seeking a recession-resistant, stable asset class. Moreover, this offering was structured on an all-cash, no debt, basis for investors who do not need or want debt for their Section 1031 exchange, thereby removing the mortgage repayment risk.”

Located at 1706 Magnolia Way, the facility is comprised of a 30,548-square-foot orthopedic clinic which includes 18 exam rooms, a dual X-ray suite, designated waiting areas, a physical therapy center, an MRI suite and space to expand for practice growth. Constructed in 2009 and situated on 1.88 acres of land, the building is 100% leased on a 12-year triple net lease to Champion Orthopedics, a provider of orthopedic and musculoskeletal care; specialized sports medicine treatment; orthopedic surgery; physical therapy and rehabilitation services; and diagnostic imaging.

“This medical property was purchased on desirable economic terms, with annual rent increases and a triple net lease in place where the tenant is responsible for taxes, insurance, maintenance and repairs, thereby reducing future inflation risk,” said Whitson Huffman, senior vice president and head of acquisitions. “The combination of a favorable entry capitalization rate, annual rental increases and a triple net lease make this a very desirable investment for Section 1031 exchange and other investors seeking potential income and profit.”

According to the Centers for Medicare and Medicaid Services, health spending increased by 4.6% in 2018 to reach $3.6 trillion and accounted for 17.7% of gross domestic product.

Collin Hart of ERE Healthcare Real Estate Advisors represented the seller in the transaction.

Since inception, Capital Square has acquired 101 real estate assets for more than 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.

About Capital Square 1031 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. Capital Square has completed more than $1.87 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. 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.

source https://www.capitalsquare1031.com/capital-square-1031-launches-all-cash-dst-offering-of-a-100-leased-medical-facility-in-augusta-georgia/ source https://capitalsquare1031.tumblr.com/post/190646078144

Capital Square 1031 Launches Another All-Cash DST Offering

February 4, 2020

Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 Augusta MOB DST, a Regulation D private placement offering comprised of an orthopedic clinic in Augusta, Georgia that was acquired by the DST in an all-cash transaction.

The offering seeks to raise approximately $8.9 million in equity from accredited investors, primarily those seeking 1031 exchange replacement property, and has a $25,000 investment minimum.

“There is unprecedented demand for specialized medical facilities,” said Louis Rogers, founder and chief executive officer of Capital Square. “Because the need for medical services is not correlated to the general economy, medical properties have proven to be recession resistant.”

The facility is comprised of a 30,548-square-foot orthopedic clinic which includes 18 exam rooms, a dual X-ray suite, designated waiting areas, a physical therapy center, an MRI suite and space to expand for practice growth.

Constructed in 2009 and situated on 1.9 acres of land, the building is 100 percent leased on a 12-year triple net lease to Champion Orthopedics, a provider of orthopedic and musculoskeletal care; specialized sports medicine treatment; orthopedic surgery; physical therapy and rehabilitation services; and diagnostic imaging.

“This medical property was purchased on desirable economic terms, with annual rent increases and a triple net lease in place where the tenant is responsible for taxes, insurance, maintenance and repairs, thereby reducing future inflation risk,” said Whitson Huffman, senior vice president and head of acquisitions.

According to the Centers for Medicare and Medicaid Services, health spending increased by 4.6% percent in 2018 to reach $3.6 trillion and accounted for 17.7 percent of gross domestic product.

In related company news, Capital Square 1031 recently subscribed CS1031 Houston Memory Care II DST, a private placement investment offering comprised of a new memory care facility near Houston that was purchased with no mortgage debt. The offering raised approximately $4.9 million.

To read the full article, click here.

source https://www.capitalsquare1031.com/capital-square-1031-launches-another-all-cash-dst-offering-2/ source https://capitalsquare1031.tumblr.com/post/190646078184