Capital Square is a shining example of achievement in the field of tax-advantaged real estate investments. For this illustrious company, 2023 was again another record-breaking year that cemented its standing as a national leader. Let’s examine the turning points that elevated Capital Square to unprecedented levels.
Unprecedented Financial Success and Integration
The property management division’s seamless integration shows Capital Square’s dedication to quality. Notably, the company completed seven full-cycle DST sales and fully subscribed to ten Delaware statutory trust (DST) programs, raising approximately $345 million in equity for its investment programs. These accomplishments demonstrate both operational dexterity and financial competence.
Significant Progress Since the Establishment
Capital Square was founded in late 2012 and has since sponsored over 135 investment offers, amassing an impressive volume of $7.8 billion in real estate transactions. Louis Rogers’ vision and tenacity are evident in his rise from a specialized attorney in 1984 to the co-chief executive officer of a completely vertically integrated corporation.
Success Story of DST
Capital Square’s DST programs were a huge success in 2023; the company fully subscribed to 10 and achieved an impressive average total return of 156.4% for full-cycle DSTs. This proves Capital Square’s capacity to handle intricate tax arrangements, especially those pertaining to Internal Revenue Code Section 1031, and it also shows investor trust.
Vast Real Estate Collection
With an outstanding aggregate occupancy rate of 94.7% as of the year’s end of 2023, Capital Square’s real estate portfolio consists of 62 multifamily, 13 manufactured housing, and 63 commercial properties. The company’s strategic decision to establish Capital Square Living, a wholly-owned subsidiary in charge of managing multifamily portfolios, is indicative of its dedication to expansion and effective operations.
Strategic Moves and the Success of UPREIT
Capital Square demonstrated its creative approach in UPREIT deals, as seen by the closing of the Saltmeadow Bay Apartments. DST investors received a total return of almost 161%, which strengthened Capital Square Apartment REIT, Inc.’s position.
Development Skills
With two opportunity zone complexes topping out and a third beginning construction, Capital Square’s development efforts have resulted in the completion of approximately 750 multifamily units. Furthermore, the conclusion of four Richmond, Virginia, opportunity zone initiatives demonstrated the company’s ability to deliver, stabilize, and refinance projects all of which ultimately benefit investors.
Construct-for-Rent Innovation
Capital Square’s build-for-rent pipeline, which is a testament to its versatility, is focused on satisfying the need for single-family homes inside properties that are professionally managed. The groundbreaking of 320 single-family rental houses on 29 acres in Glendale, Arizona, is a prime example of Capital Square’s innovative philosophy.
Handling Difficulties and Gaining Industry Acknowledgment
Even with the difficulties brought on by the Federal Reserve’s dramatic hike in interest rates in 2023, Capital Square held strong. Whitson Huffman, the co-chief executive officer, gave a guarantee about the firm’s readiness for 2024, which shows that Capital Square can find lucrative chances even under difficult circumstances.
Designation of Accredited Management Organisation
The coveted Accredited Management Organisation (AMO) title from the Institute for Real Estate Management was a major accomplishment for Capital Square. Capital Square’s reputation is further enhanced by this distinction, which puts it among the top property management companies in the country.
Dedicatedness to Social Responsibility
The company’s charitable initiative, “Capital Square Cares,” is a prime example of its dedication to creating a brighter future. Capital Square’s commitment goes beyond just making money; it is demonstrated by its active support of philanthropic causes in the areas in which it develops, constructs, and oversees.
Concerning Capital Square
Capital Square’s transformation from a niche real estate law company to a nationally renowned leader in real estate development and investment is evidence of its constant dedication to quality. The company is positioned as a flexible and significant participant in the market by its wide range of products and services, which include Delaware statutory trusts and qualified opportunity zone funds.
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