1031 EXCHANGE INVESTMENT OFFERING
Capital Square Richmond Active Living Apartments DST
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Overview
Everleigh Short Pump is a Class A, active adult 55+ age-restricted community composed of one-, two- and three-bedroom units with nine-foot ceilings and kitchen islands, located within the greater Richmond MSA. The property is currently 95.7% occupied and has averaged approximately 96.3% occupancy over the previous two years. The management team reports an extremely high 83% retention rate. Many residents who moved in when the project opened are still in occupancy. Active adult communities are known to benefit from a stable resident base, providing more dependable rental income.
Key Investment Features
Structure
Delaware Statutory Trust (DST)
Investment Sponsor
Capital Square
Property Type(s)
Multifamily
Location(s)
VA
Occupancy
95.7%
721 Exchange / UPREIT
Optional
Minimum Investment
$100,000
Investment Strategy
Buy & Hold
Year 1 Yield
4.50%
In-Place Loan
53.99% LTV
Avg. Remaining Lease Term
N/A
Cash Flow Forecast
Year 1
Year 2
Year 3
Year 4
4.50%
4.55%
4.63%
4.68%
Year 5
Year 6
Year 7
Year 8
4.96%
5.32%
4.08%
4.46%
Year 9
Year 10
4.84%
5.24%
Investment Highlights
Short Pump, Virginia, a prosperous suburb of Richmond.
Managed by Capital Square Realty Advisors,LLC, this property which was built in 2019 boasts modern amenities and has no significant deferred maintenance costs
Capital Square: $6.2 billion+ assets under management, 120+ team members, 135+ sponsored investment offerings
Advantages
The Short Pump submarket has experienced above-average suburban growth
Short Pump is one of the most affluent retail and residential corridors in the Richmond MSA
Weaknesses
I/O period of the loan expires in Year 6 - causing a decrease in income to the investment. Capital Square will likely need to sell prior to the start of Year 7.