Capital Square Acquires Knoxville BFR
Completed in 2022, the community is less than 30 minutes from the city’s downtown.
Summit Townhomes. Image courtesy of Capital Square
Capital Square has been quickly growing its build-for-rent portfolio, further expanding with its latest acquisition of a 120-unit community in Oak Ridge, Tenn. The firm acquired Summit Townhomes from an undisclosed seller on behalf of CS1031 Summit Place BFR Housing DST. The firm is looking to raise $18 million in equity from accredited investors with a minimum investment of $50,000 for its offering.
Completed in 2022, Summit Townhomes has three- and four-bedroom units that average more than 1,400 square feet. Unit interiors include marble countertops, stainless steel appliances, walk-in closets, full-size washers and dryers as well as smart home integrations. The community’s amenities include a fire pit, covered gazebo, pet park, overflow parking and a picnic and barbecue area.
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Located at 100 Lisa’s Way in the Knoxville area, residents have a less than 30-minute commute to downtown Knoxville. The community’s location near State Route 62 also gives residents direct access to the area’s major employers, including the Oak Ridge National Laboratory, Methodist Medical Center of Oak Ridge and Oak Ridge Schools.
Whitson Huffman, co-CEO of Capital Square, said in prepared remarks that Summit Townhomes saw strong initial performance with a full lease-up in nine months that resulted in a current occupancy rate of 98 percent.
Continuing the BFR momentum
Prior to Summit Townhomes, Capital Square previously acquired the 102-unit Aspen Vista community in Reno, Nev. in June. Like the latest acquisition, the Reno community was also a recently completed build-for-rent community. Now, Capital Square is up to its fourth BFR offering for its Section 1031/DST program with Summit Townhomes.
Along with its BFR acquisitions, Capital Square has been developing communities within this sector. In December, the firm broke ground on Ironwood Homes at Rosefield, a 320-unit BFR community in Glendale, Ariz. along with the project’s co-developer Sunstone Two Tree. The developers acquired the 29 acres of land for the project in October and are now expecting to complete the community in the summer of 2025.
Overall, Capital Square’s Private Equity Group has been steadily expanding on its dedicated build-for-rent strategy targeting high-growth Sunbelt markets. The firm also secured its first institutional partner for its BFR strategy through ITOCHU Corp. in October.
