Capital Square 1031 has acquired Integra Vistas, a Class A multifamily community located in the Hixson submarket of Chattanooga, Tenn., for $52.7 million.
The acquisition is for a Delaware Statutory Trust (DST) offering for 1031 exchange and other accredited investors. Built in 2018, the 280-unit property situated on about 20 acres of land was acquired for CS1031 Integra Vistas Apartments, DST, a Reg. D. private placement. Located at 151 Integra Vistas Drive, the community offers one- through three-bedroom apartments ranging from 766 to 1,278 square feet in size.
To complete the transaction, Capital Square 1031 had to overcome three challenges.
“The first was this involved a well-contested effort to acquire a highly-sought property in a hot market,” Jorge Figueiredo, vice president of acquisitions and asset management for Capital Square, told Multi-Housing News. “We were one of the bidders and suitors trying to ensure the property was awarded to us. We’ve been able to develop a track record over the past few years, based on our ability to transact and be good buyers of real estate. That track record enabled us to acquire the property.”
The second hurdle was the speed with which the transaction had to be executed. A purchase of this type typically takes 60 to 90 days, he said. The Capital Square 1031 team was able to execute due diligence, obtain financing and close in 42 days.
Walker & Dunlop’s Alexandra Huffman and Andrew Tapley sourced the acquisition for the transaction. Last month, Walker & Dunlop worked on behalf of the seller, Canfield Development Inc., when a Los Angeles rental community changed hands.
“The third challenge was that the property was built on a sloping plot and there were physical challenges we had to get comfortable with through due diligence,” Figueiredo said. “We were able to . . . overcome that hurdle by using our in-house development team that played a big role in our due diligence effort in acquiring this property.”
Integra Vistas’ amenities include a resident clubhouse with an entertainment, game and poker room. Features and finishes of apartments include faux wood blinds, wood plank-style flooring, bedroom carpeting, tile backsplash and 9-foot-high ceilings.
Residents are well-positioned to gain access to the metro’s two primary job hubs. Downtown Chattanooga is home to BlueCross BlueShield headquarters and more than 60,000 jobs. Enterprise Industrial Park features Amazon and Volkswagen plants.