REAL ESTATE INVESTMENT
Capital Square | June 17, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced today the acquisition of Hunter's Chase, a 320-unit apartment community in the Richmond suburb of Midlothian, Virginia. The community was acquired on behalf of CS1031 Hunter's Chase, DST.
This is Capital Square's twelfth acquisition of a multifamily community in the Richmond area for the DST/1031 exchange program. The Richmond area enjoyed 12% rent growth over the last year, driving cash flow and residual value. Capital Square is a prolific buyer of apartment communities in the Mid-Atlantic region that benefit from a combination of strong rent growth and high occupancy, along with exceptional economic opportunities, and the ongoing migration of people from gateways citites to the suburbs."
Louis Rogers, founder and chief executive officer of Capital Square
Located at 5200 Hunt Master Drive, the 24.7-acre garden-style apartment community offers one-, two- and three-bedroom units averaging 816 square feet with spacious floor plans, walk-in closets, in-unit washer and dryer, stainless steel appliances and private screened patios and balconies. The property amenities include a resident clubhouse with coffee bar, fully equipped fitness center, swimming pool with a sundeck, multi-use sports court, BBQ and picnic areas, fenced dog park, playground, carwash station and package lockers.
Hunter's Chase is adjacent to the Village at Swift Creek and Commonwealth Center shopping malls, offering residents a wealth of local shopping and dining options.
The community is situated in a thriving submarket that Yardi Matrix project's will maintain a 10-year occupancy average of 96% through 2032. According to Axiometrics, the Chesterfield County submarket in which Hunter's Chase is located, is projected to experience annual effective rent growth of 6.6% and an average occupancy rate of 97.3% through 2025.
"Hunter's Chase is located in a high-growth submarket of Richmond that we expect will continue to flourish over the next several years," said Whitson Huffman, chief strategy and investment officer. "The property has exceptional amenities and is in the midst of a thriving metropolitan region that has persistently strong demand for quality multifamily living."
CS1031 Hunter's Chase, DST seeks to raise $48.2 million in equity from accredited investors and has a minimum investment requirement of $50,000.
Since its founding in 2012, Capital Square has acquired 149 real estate assets for approximately 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.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). In recent years the company has become an active developer of mixed-use multifamily properties in the southeastern US, with eight current projects totaling approximately 2,000 apartment units with a total development cost in excess of $600 million. Since 2012, Capital Square has completed more than $5.6 billion in transaction volume. Capital Square's related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic 50" reports in 2019 and 2020.
REAL ESTATE TECHNOLOGY
Ascot Corp. | May 09, 2022
Ascot Corp. has formed the first private fund through a joint venture with global institutional investors to invest in MF residential, senior living facilities, and student housing in the Tokyo metropolitan area.
Main Investment Properties of the Fund
"ASTILE" is MF residential brand winning the Good Design Award twice last year, and "FARE" is the brand winning the Award seven times for the five consecutive years.
*The Good Design Award is the only comprehensive design evaluation and recommendation system in Japan that covers a wide range of fields from industrial products to business models and event activities.
Overview of the Fund and Strategy
The investment targets of the Fund are MF residential, senior living facilities, and student housing, and their locations are limited to the Tokyo metropolitan area where are expected to provide stable cash flows with little impact from the Covid-19 pandemic and high liquidity on exit, and consequently stable investment results. Furthermore, the investment risks can be identified within the limited scope and in a quantitative manner due to the predefined properties.
The portfolio of the Fund No. 1 comprises of 9 properties, mainly MF residential developed by Ascot (including ASTILE Harajuku, and ASTILE Nishi-Shinjuku II etc.). In the near future, Ascot plans to expand the scope of its fund in collaboration with global institutional investors by acquiring MF residential, senior living facilities, and student housings from external developers and funds, in addition to properties developed by Ascot. Ascot manages these properties as the asset manager of the Fund.
The Growth Strategy of Real Estate Fund Business Department
The Real Estate Fund Business Department, established in 2021, is a new business unit of Ascot that leverages the company's design and quality property development capabilities cultivated over the past 20 years since Ascot's founding in 1999, as well as its domestic and international network. As one of the key pillars of our mid-term growth strategy, we aim to further expand our business by forming joint venture funds with domestic and foreign investors and new private funds, as well as by entering the REIT and other businesses.
In addition to MF residential and offices, which are our strengths, we will target a wide range of asset classes, including logistics, hotels, senior housing, data centers, etc. Furthermore, we are considering entering some asset classes from the development stage.
The Fund Business Department will contribute to the growth of the real estate investment market by continuously providing optimal solutions and quality investment opportunities to a wide range of investors while expanding total assets under management.
Under the circumstances of limited investment opportunities under the low interest rate policy and globalization trend of investment, there has been a shift in allocations from traditional assets such as listed stocks and bonds to alternative investments, with real estate investment in particular gaining prominence worldwide over the past few years.
As the global asset allocation strategy, a certain percentage has been shifted to Asia, and, in comparison to other Asian countries, investment in Japanese real estate has been allocated to a significant degree in terms of core investment. The primary factor is that Japan's low interest rate policy has ensured a relatively large yield gap. Secondly, Japan, centered on Tokyo, has a considerable market size which provides high liquidity on exit. In addition, the infrastructure for investment, such as legal, accounting, and taxation is very stable. Therefore, stable returns are expected to be secured. Consequently, the investment needs and flow of funds from global investors, especially institutional investors, to Japanese real estate have continued even with the COVID-19 pandemic, and the recent depreciation of Japanese yen has also attracted investors' attention to Japanese real estate.
The asset classes receiving great attention are logistics and MF residential. Since Ascot has advantage in longstanding residential development business, the first fund focused on residential properties.
Comments by Takeshi Nakabayashi, President of Ping An Japan Investment Co, Ltd.
Ascot Corp. is the first real estate company in Japan invested by Ping An Group. We are fascinated by Ascot's excellent development track record backed by its ability to plan and deliver high value-added residential and office properties. We have high expectations for the growth of Ascot's new global business, including the real estate fund management business just launched, the development of logistics facilities, and integrated services from real estate brokerage to property management for global investors.
About Ascot Corp.
Ascot is a global comprehensive real estate service provider targeting Tokyo metropolitan area. The business includes the development of the MF residential and logistics, fund management, real estate brokerage for global investors, and property management leveraged by its design and high-quality property development capabilities as well as its domestic and international network. Its design and development capabilities cultivated over the past 20 years are highly recognized, as the track record of winning the Good Design Award 14 times in total shows. Through Digital Transformation, Ascot aims to provide quality real estate services in line with global standards by enhancing customer contact and creating new revenue models.
SkySlope | June 23, 2022
We're thrilled to announce an expansion of our partnership with SkySlope, an innovator in real estate transaction management. SkySlope serves over 450,000 real estate professionals and now offers Updater as part of their transaction management software to further enhance client relationships before, during, and after each real estate transaction.
New features will be released this month, including:
All SkySlope broker and agent customers will automatically receive access to the Updater Pro platform at no cost.
All homebuyers and sellers in the SkySlope system will receive unlimited access to Updater, helping them move into and manage their new homes.
Property information and specific transaction details will sync automatically between SkySlope and Updater, providing each buyer and seller with a personalized and tailored move plan.
Broker and agent branding will be featured within the Updater experience before, during, and after the transaction and across communication channels – in-app, web, and email.
With more real estate transactions completed in a digital environment, it's critical to remember that the transaction shouldn't end at the closing table – the move is often the most stressful part. We're thrilled to deepen our relationship with SkySlope and jointly deliver on the promise of a frictionless and modern moving experience for all homeowners."
David Greenberg, Founder and CEO of Updater
While homeowners enjoy a simplified and automated moving experience using Updater's industry-leading technology, SkySlope's customers will build lasting client relationships thanks to Updater's co-branding and configuration capabilities. Once branding and preferences are configured, brokerages and agents remain front and center in the Updater experience as their clients organize and complete moving tasks.
"We build solutions to empower REALTORS® and are invested in their ongoing success," said Buck Avey, VP of Product at SkySlope. "Our collaboration with Updater is just one of the many ways we place the agent at the center of providing best-in-class experiences for their clients."
SkySlope manages nearly 3M transactions each year. The homebuyers and sellers associated with Skyslope-managed transactions will receive integrated access to Updater's technology, helping them seamlessly organize and complete tasks including:
Set up internet and television services
Compare and book both full-service and on-demand moving services
Set up utility services, including electricity, gas, and water
Set up smart home technology
And much more
"Updater is integrated with our transaction management system (SkySlope), so that there's no work needed by our sales executives," said Brenda Tushaus, CEO at RE/MAX Results, ranked as the 15th largest brokerage firm in the US by closed transaction sides in 2021. "Other than getting set up and adding branding, it just runs automatically – that's a huge time saver."
Established in 2011, SkySlope is the customer experience platform managing real estate transactions from contract to close. Serving over 450,000 real estate professionals across the U.S. and Canada, SkySlope manages nearly 3 million transactions annually. SkySlope is on a mission to build solutions that reshape the real estate industry by creating the most powerful autonomous transaction platform.