Capital Square 1031 Acquires Jacksonville Community for $127M
Standing 10 stories, the property was completed last year.
Capital Square 1031 is continuing to expand its footprint in Florida after acquiring a newly-built luxury community in Jacksonville. Capital Square 1031 acquired Vista Brooklyn Apartments on behalf of CS1031 Vista Brooklyn Apartments DST. According to Yardi Matrix data, the firm acquired the property from Bristol Development Group for $126.3 million.
The 10-story community was recently completed in 2021 and offers 308 units in one-, two- and three-bedroom floorplans that range in size from 460 to 1,626 square feet. Vista Brooklyn Apartments also offers a wide range of amenities including a rooftop beer garden, heated saltwater pool, clubroom, package room, coffee bar, bike storage room, meditation room, fitness center, dog park, courtyard, outdoor grills and co-working spaces. The mixed-use asset also includes 12,685 square feet of ground-floor retail space.
Located at 200 Riverside Ave., Vista Brooklyn Apartments is part of Jacksonville’s Brooklyn/Riverside submarket, but also roughly a mile away from the city’s downtown. Whitson Huffman, chief strategy and investment officer for Capital Square 1031, said in prepared remarks that the community is very attractive to Millennials and people looking for a walkable lifestyle.
Capital Square 1031 told Multi-Housing News that the community was acquired while it was still in its lease-up process. The new ownership is also looking to raise $63.7 million in equity for its Delaware statutory trust offering.
However, the firm is confident in the community’s success since it’s located in the growing Jacksonville market. Louis Rogers, founder & CEO of Capital Square 1031, said in prepared remarks that the city is ranked number one in Florida for multifamily rent growth and saw 17.4 percent year-over-year rent growth in the second quarter of 2021.
From its founding in 2012, Capital Square 1031 has since acquired 145 real estate assets for more than 3,800 investors looking specifically for properties that qualify for Section 1031. Unlike Vista Brooklyn Apartments, the firm has acquired many age-restricted communities in Florida, including a 222-homesite community in Lakeland and a 420-homesite community in Palmetto that are both reserved for residents aged 55 years or older.
But, Capital Square 1031’s portfolio also includes several communities in Tennessee and Virginia. In June, the firm acquired a 280-unit community in Chattanooga, Tenn., for $52.7 million. A month later, Capital Square 1031 purchased a 307-unit community in Richmond, Va., that’s part of a larger development.