Capital Square, a national sponsor of tax-advantaged real estate investments and an active developer of multifamily communities, announced the acquisition of Ashford Townes, a 74-unit newly constructed build-for-rent townhome community in the Raleigh suburb of Fuquay-Varina, North Carolina. The community was acquired on behalf of CS1031 Ashford Townes BFR Housing, DST, which seeks to raise $13.7 million in equity from accredited investors and has a minimum investment requirement of $50,000.
Capital Square formed the Private Equity Group, managed by real estate executives Dave Platter, and Jon Trott, as managing directors and co-heads. This represents Capital Square’s third BFR offering on the platform to date.
“With a housing shortage of over four million units, Capital Square believes build-for-rent (BFR) housing solutions provide the U.S. with a vital supply of new housing stock,” said Louis Rogers, founder, and chief executive officer. “These professionally managed and highly amenitized communities are desirable for providing the benefits of single-family living without the associated costs of ownership. Our BFR strategy is complementary with the existing multifamily business — Capital Square will continue to thoughtfully acquire and develop multifamily communities throughout the Southeast and Texas in the years to come.”
Ashford Townes is one of just five single-family or townhome purpose-built rental communities of institutional quality currently available within the Greater Raleigh area. The property is approximately 30 minutes south of Research Triangle Park, the most extensive research park in the U.S. and a premier global innovation center. Its 7,000 acres encompass the Raleigh-Durham-Cary combined statistical area and presents a diverse, innovation-based economy anchored by universities and hundreds of companies, including science and technology firms, government agencies, academic institutions, startups, and nonprofits.
“The Research Triangle region welcomed more than 900,000 new residents between 2000 and 2017, and a declining inventory of high-quality land sites, competition from multifamily developers and supply chain disruptions have resulted in limited deliveries of rental communities to the region,” said Whitson Huffman, co-chief executive officer. “Ashford Townes offers a convenient, reliable and spacious housing option amidst the least affordable single-family for-sale market that the Raleigh area has experienced in decades.”
Since its founding in 2012, Capital Square has acquired 170 real estate assets for over 6,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.
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