Capital Square’s Alabama DST Offering Reaches Target
This community is located in a metro area that is seeing steady population growth.
The FarmHaus Apartments are located in Madison, Ala. Image courtesy of Capital Square
Capital Square has reached full subscription for its Delaware Statutory Trust offering that owns a 324-unit community in Madison, Ala. According to the company, the Regulation D private placement raised nearly $55.9 million from investors, a majority of which are returning investors.
Capital Square acquired FarmHaus Apartments in September 2022 from Thompson Thrift, who also developed the community through its affiliate Watermark Residential. The community is also subject to a Fannie Mae loan with a fixed interest rate of 4.5 percent, according to Capital Square.
FarmHaus Apartments offers one-, two- and three-bedroom units that average 973 square feet and were built with stainless steel appliances, kitchen islands with quartz countertops, walk-in closets, keyless entry, washer and dryer units, and private patios or balconies. The community’s amenities include a pool, sundeck, hot tub, fitness center, business center, coffee bar, TV and gaming lounge, dog park, pet spa and grilling stations. According to Capital Square, the community is 91.1 percent occupied.
Located at 1260 Balch Road along Highway 72, FarmHaus Apartments gives residents easy access to the Huntsville, Ala. metro and its major employment nodes, including Redstone Arsenal, Cummings Research Park and the Mazda Toyota manufacturing facility. The community is also located next to the Clift Farm master development that has many retail offerings and a 400,000-square-foot Publix supermarket. Whitson Huffman, co-CEO of Capital Square, said in prepared remarks that the Huntsville market has been seeing continuous population growth, which has led to high demand for quality rental housing options.
Southeast offerings
Earlier this year, Capital Square also announced that its Delaware Statutory Trust offering, CS1031 Lakeside on Riverwatch Apartments, was fully subscribed at $26.8 million. The trust owns Lakeside on Riverwatch, a 200-unit garden-style community in Martinez, Ga.
While Capital Square is known for sponsoring tax-advantaged real estate developments, the company has also been active with developing communities. In June, Capital Square broke ground on a 320-unit built-to-rent community in Glendale, Ariz. along with Sunstone Two Tree. In total, the company has acquired a total of 171 real estate assets for more than 6,500 investors with a portfolio that includes communities throughout Sunbelt states like Virginia, Georgia, Florida, Texas, and North and South Carolina.
