Capital Square 1031 Completes VA Multifamily Purchase

The firm acquired Summit at Bon Air Apartments in a Richmond, Va., suburb through a Delaware statutory trust (DST) offering that was fully subscribed by 61 investors.
Summit at Bon Air Apartments

Capital Square 1031—a Richmond, Va.-based national real estate investment and management company that specializes in sponsoring 1031 exchange investments—completed a Delaware statutory trust (DST) offering featuring Summit at Bon Air Apartments, a 296-multifamily community in Bon Air, Va. The DST was fully subscribed by 61 Section 1031 exchange investors.

“This multifamily community is well-located in the region’s most populous county, Chesterfield County, and is conveniently situated near the heavily traveled Midlothian Turnpike and Huguenot Road, just 20 minutes from downtown Richmond and a short drive from Capital Square’s headquarters,” Louis Rogers, Capital Square founder & CEO, said in a prepared statement. “Purchased for a Delaware statutory trust offering, the property is surrounded by retail destinations and economic drivers. Capital Square is bullish on Class B multifamily communities that generate stable cash flow and have strong appreciation potential. The community was financed with favorable 10-year fixed-rate debt at 4.29 percent from Fannie Mae.”

The property is situated on more than 27 acres at 1701 Irondale Road in the Richmond suburb and underwent a substantial renovation between 2015 and 2017. It includes 37 residential buildings and a clubhouse, fitness and business centers, swimming pool and 550 parking spaces. Units range in size from 872 square feet to 1,321 square feet and have one-, two- and three bedrooms floorplans.

“This offering featured an exceptional location within the Richmond MSA. Its easy access to retail destinations and employment centers coupled with the generous unit sizes and interior improvements differentiate it from other Class B apartment communities in the area,” Whitson Huffman, vice president of acquisitions, said in a prepared statement.

More Virginia Deals

Several recent transactions have also occurred in Virginia. In February, the firm acquired Bellemeade Farms, a 316-unit multifamily community in Leesburg, Va., from Bainbridge Cos. for $69.8 million, according to Yardi Matrix. Walker & Dunlop arranged $45.3 million in financing and also helped Capital Square structure debt to accommodate the DST purchase.

A month earlier, Capital Square purchased Woodshire Apartments, a 288-unit community in Virginia Beach, Va., also owned by Bainbridge, Yardi Matrix reported. Rogers noted in January that the acquisition was structured as a DST offering.

Capital Square has sponsored 54 DST offerings since its founding in 2012 and completed approximately $1.02 billion in transaction volume. The firm has helped more than 1,405 investors find replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue code.

Image courtesy of Capital Square 1031