Capital Square has acquired Valley Ridge, a newly constructed, 129-unit build-for-rent (BFR) community in Rossville, Georgia, a suburb of Chattanooga, Tennessee.
The community was acquired on behalf of CS1031 Valley Ridge BFR Housing DST, a newly launched Delaware statutory trust private placement offering that seeks to raise $20.25 million in equity from accredited investors and has a minimum investment of $50,000. This represents Capital Square’s sixth BFR offering for its Section 1031/DST program and the ninth BFR project for its private equity group. The financial terms of the deal were not disclosed.
Valley Ridge was developed by D.R. Horton and completed in 2023. It offers a mix of three-, four- and five-bedroom detached single-family homes averaging 1,874 square feet.
“Capital Square has an extensive footprint in Chattanooga’s attractive and promising real estate market with almost 1,300 units, making us one of the largest institutional owners of multifamily properties in the area,” said Whitson Huffman, co-CEO. “Limited supply in Rossville has resulted in the delivery of only 409 multifamily units since 2014, and zero units currently under construction or proposed. Valley Ridge is the only asset delivered in the submarket in the past 12 months and has already shown promising performance, accomplishing 90% physical occupancy as of September 2024.”
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