Capital Square Purchases South Florida Asset
Bell Partners sold the community, after completing more than $9 million in capital improvements.
Capital Square has added a nearly fully occupied community in Parkland, Fla. to its portfolio of Section 1031 communities. The firm acquired the 396-unit Parkland Apartments on behalf of CS1031 Parkland Apartments, DST from Bell Partners. The firm is looking to raise $105.7 million in equity from investors, with a minimum investment requirement of $50,000.
The Class A community offers one-, two- and three-bedroom units that average 1,118 square feet and were built with stainless steel appliances, quartz countertops, in-unit washers and dryers, and a private patio or balcony. The community’s amenities include a clubhouse, fitness center, hammock garden, a nearly 5-acre lake, walking trails, two pools and two outdoor kitchens. Adding to the outdoor amenities, Parkland Apartments is also located next to the city’s Covered Bridge Park, a nearly three-acre park with a meditation area, yoga lawn, butterfly garden and nature trails.
Starting in 2018, Bell Partners conducted $9.4 million in capital improvements on the community, $6.8 million of which was used for interior renovations. The interior renovations saw complete upgrades at every unit with the countertops, cabinets, appliances, flooring, hardware, lighting fixtures and other items. The remaining $2.6 million was used for property-wide improvements like landscaping, exterior lighting, and repairs to the roof and common areas.
Located at 5851 Holmberg Road, Parkland Apartments is located near many of the area’s universities, including Broward College, Lynn University, Florida Atlantic University and South Florida Education Center. Residents are also located near Southern Florida’s major employers like Microsoft, Zimmerman Advertising, American Express and Broward Health.
According to Capital Square, Parkland Apartments is one of only two apartment communities located in the Parkland school district. The community is 95.5 percent occupied, according to Capital Square.
Building up a large Florida portfolio
While Capital Square does develop multifamily communities, most of its portfolio involves tax-advantaged real estate investments. So far, Capital Square has acquired 164 real estate assets for more than 6,000 investors that are looking for 1031 exchanges.
Last year, the company made several acquisitions in Florida specifically for 1031 exchanges. At the start of 2022, Capital Square acquired Vista Brooklyn Apartments, a 308-unit community in Jacksonville, Fla. while it was still in the lease-up process. In August, the company also acquired a manufactured housing community reserved for residents who are at least 55 years old in Palmetto, Fla. for nearly $70 million.