Capital Square, a sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities, announced the sale of Bellemeade Farms Apartments, a 316-unit multifamily property located in Leesburg, Va. The property was owned by a group of investors in a Capital Square-sponsored Delaware statutory trust who realized a 136.42% total return, or a 6.47% annualized return* from their 1031 exchange investment.
Since 2018, Capital Square has taken 31 DST offerings full-cycle that have resulted in an average 168.45% total return and an average 12.95% internal rate of return.
“This is another successful sale of a DST property,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “For 12 years, Capital Square has proven a track record of delivering stable returns and appreciation for DST investors.”
Located at 775 Gateway Drive SE, Bellemeade Farms is comprised of 12 residential buildings and a clubhouse with a leasing office. Purchased by Capital Square, then Capital Square 1031, in 2019, the community includes efficiently designed one- and two-bedroom floorplans ranging in size from 583 square feet to 954 square feet. Community amenities include a resort-style pool, outdoor grilling and entertaining area, resident lounge, club room, dog park and spa, tennis courts, 24-hour fitness center with a cardio studio, and garden plots available to rent.
Situated on 15.74 acres of land, the community was originally constructed in 1988 and has had $2 million invested in maintenance, landscaping, and common areas by prior institutional ownership over the last three years.
“By investing in the DST, Capital Square’s investors secured ownership of a large, producing multifamily property in one of the wealthiest counties with significant population growth and a high-ranking school district,” said Whitson Huffman, co-chief executive officer. “After five years of sponsoring and managing this investment offering, we are pleased to continue our successful track record and once again deliver a compelling result to investors by taking this DST full-cycle.”
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 and other investors seeking stable cash flow and capital appreciation.
Capital Square is a 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. In recent years the company has become an active developer of mixed-use, multifamily properties in the southeastern United States. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume.
*The “total return” represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested. The “annualized return” is defined as the difference between net sale proceeds and initial investment, plus the distributions over the holding period, divided by the initial investment; divided by the number of months; and times 12.
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