Capital Square has acquired FarmHaus, a recently completed, 324-unit Class A multifamily community in Madison, Ala., a suburb of Huntsville, from Thompson Thrift. The sale price was not disclosed.
Whitson Huffman, co-chief executive officer of Glen Allen, Va.,-based Capital Square, said in prepared remarks that FarmHaus is an excellent addition to the firm’s growing portfolio of luxury multifamily communities throughout the Southeast. Huffman noted that Huntsville is one of the most desirable markets for residential investments because of its rapidly growing economy and demand for quality rental options like those provided by FarmHaus.
Watermark Residential, a wholly owned affiliate of Thompson Thrift, began construction of the FarmHaus community in February 2020 on a 22.5-acre site outside the fast-growing city of Huntsville. Located at 1260 Balch Road in Madison County, the community is 92 percent leased.
The property is comprised of three-story garden-style apartment buildings with one-, two- and three-bedroom layouts averaging 973 square feet. The units feature open-concept floorplans with hardwood-style flooring, quartz countertops, stainless-steel appliances including a French door refrigerator, kitchen island with pendant lights, walk-in closets and a private patio or balcony. Community amenities include a clubhouse, fitness center, business center, coffee bar and gaming lounge, resort-style pool, firepit and community grilling station, fenced-in dog part and pet spa.
Josh Purvis, managing partner for Thompson Thrift Residential, said in a prepared statement FarmHaus has been a successful development for the company in Huntsville’s growing market. He attributed the success to the quality construction, finishes, amenities, and on-site team that garnered significant interest from potential residents and buyers.
Craig Hey and Andrew Brown with Cushman & Wakefield Multifamily Advisory Group brokered the sale for Thompson Thrift, a full-service real estate company with offices in Indianapolis, Denver, Houston, Phoenix and Terre Haute, Ind.
Huntsville is one of the nation’s top growth markets and has attracted more than $5 billion in capital investments since 2018, including major companies in aerospace, defense, medical, education and telecommunications. Rents have increased in the area by an average 8 percent since 2019 and the city has top rankings for its GDP and population growth.
Capital Square specializes in tax-advantaged real estate investments, including Delaware statutory trusts for 1031 exchanges and qualified opportunity zone funds. As a developer, Capital Square has eight projects totaling about 2,000 apartment units with a total development cost of more than $600 million.
Several weeks ago, Capital Square acquired Lakeside on Riverwatch, a 200-unit community located in Augusta, Ga., on behalf of CS1031 Lakeside on Riverwatch Apartments, DST for an undisclosed price from McDowell Properties. It was the firm’s 62nd acquisition of a community for the DST/1031 program. Also in September, Capital Square acquired two multifamily communities in Asheville, N.C., with a total of 305 units. The purchase was made on behalf of a private placement office, CS1031 Asheville NC Apartment Portfolio, DST. River Mill Lofts has 253 units and Skyloft Apartments has 52 units.
Thompson Thrift has made several dispositions in recent months. Last week, Thompson Thrift Residential sold The Element, a 276-unit community in Kansas City, Mo., that was completed last year, to Timberland Partners. Also last month, the company sold Watermark at Grand Central Park, a 288-unit Class A multifamily community in Conroe, Texas, a Houston suburb, to CEG Multifamily. Built in 2021, the property is located within The Woodlands in the Grand Central Park master-planned community.
In August, Thompson Thrift sold The Wyatt, a 216-unit multifamily community in Gilbert, Ariz., a Phoenix suburb, to a private buyer from California. Earlier in the summer, the firm sold The Ranch at Sienna, a 312-unit community in the Houston suburb of Missouri City, Texas, to Laye Capital Investments and The Retreat, a 324-unit community in Corpus Christi, Texas, to a private real estate investment firm.