Capital Square, a sponsor of tax-advantaged real estate investments and a developer and manager of housing communities, announced today that its offering – CS1031 Sidbury Station BFR Housing, DST – has been fully subscribed.
The Regulation D private placement, comprised of a 113-unit build-for-rent housing community in the Wilmington suburb of Castle Hayne, N.C., raised $22.9 million in equity from investors. Capital Square acquired Sidbury Station in July 2024.
“Sidbury Station is another successful DST/Section 1031 offering of a BFR community in the Sunbelt,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Capital Square invests in housing because housing is a necessity that has proven to be resilient over time. The BFR strategy is another arrow in our quiver along with newly constructed Class A apartments, older Class B apartments with value-add from renovations and age-restricted manufactured housing communities in Florida.”
Located at 6105 Dichondra Road, construction of Sidbury Station was completed in 2023. Developed by D.R. Horton, the nation’s largest homebuilder by volume, the modern units are a mix of three-, four-, and five-bedroom detached single-family homes, averaging 1,829 square feet. The open floor plans amenities include granite countertops, stainless steel appliances, full-size washers and dryers, walk-in closets, smart home integration, backyards, and attached two-car garages. Community amenities include a resort-style swimming pool, fitness center, clubhouse, sport court, and a playground.
Sidbury Station is located on the North Carolina coast within the Wilmington metropolitan statistical area. According to Capital Square, the area offers a high quality of life characterized by a mild coastal climate, abundant outdoor recreational opportunities, and a strong sense of community.
“Sidbury Station is a property in high demand with tenants seeking the benefits of single-family home rentals with large amenity packages, as it took less than one year for the community to reach 95% occupancy after its completion,” said Whitson Huffman, co-chief executive officer. “Capital Square is pleased to provide its investors with the opportunity to participate in the ownership of properties like this, which are discovered by our private equity acquisitions group as it employs a dedicated strategy to invest in build-for-rent communities in high-growth Sunbelt markets.”
The Wilmington region’s tourism sector, fueled by its pristine beaches and historic attractions, generated over $1 billion in revenue as of 2022, according to Port City Daily, attracting millions of visitors seeking leisure and recreation opportunities. The healthcare industry is another cornerstone, supported by major medical facilities and a growing demand for healthcare services.
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, along with opportunity zone funds and a real estate investment trust that acquires rental housing in the Southeast and Texas. 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.
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