Virginia=based investment sponsor Capital Square 1031 said that during the first half of 2021 acquired over $565 million in real estate (based on investment cost), including data centres.

The company has also taken two Delaware statutory trust (DST) offerings full cycle, and launched Capital Square Apartment REIT, Inc.

As of June 30, 2021, Capital Square has sponsored 101 investment offerings that acquired 132 properties with an investment cost of $3.042 billion for more than 3,300 investors nationwide.

During the first six months of 2021, Capital Square experienced the following activity for its investment programs:

• Capital Square acquired 10 properties for investment programs, including seven multifamily properties, a manufactured housing community in Florida, a data centre, and an R&D and industrial campus.
• Capital Square took two DST offerings full cycle, when it sold an office DST with a 159.31% total return on equity, and a multifamily DST with a 167.22% total return on equity.
• Capital Square has expanded its headquarters in Richmond, Virginia, has an office in Washington, D.C., and will soon open an office in Irvine, California. The firm has benefitted from being located in a business-friendly state.

In addition, Capital Square Apartment REIT was launched to invest in multifamily properties in the Southeastern U.S. and Texas for stable income and growth. The REIT closed on its first acquisition in May, Sapphire at Centerpointe, a Class A, 192-unit multifamily community in Midlothian, a suburb of Richmond, Virginia, which was 99.5% occupied as of June 30, 2021. 

Louis Rogers, founder and chief executive officer of Capital Square, said: “Back in 2012, a skilled group of real estate professionals came together and formed Capital Square Realty Advisors LLC to sponsor tax-advantaged real estate investments.

“The founders outlined the firm’s strategies for buying, financing, managing and selling investment real estate. Now, after nine years of operations, I am pleased to report that the investment strategies have been highly successful. In addition, new investments and strategies are being implemented to profit from recent market changes to attain even greater success in the future.”

Rogers continued to explain that Capital Square’s original business plan emphasised the sponsorship of Delaware statutory trusts, or DSTs, for Section 1031 exchange investors seeking tax deferral, stable returns and appreciation.

“The DST business has grown to be highly successful. Capital Square is the second-largest sponsor of 1031 offerings in the nation (as of June 30, 2021) according to Mountain Dell Consulting LLC, which tracks the securitized 1031 exchange market,” said Rogers.