REAL ESTATE INVESTMENT
Capital Square | June 07, 2022
Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced the acquisition of Village at Westland Cove, a Class A, 240-unit multifamily community in Knoxville, Tennessee. The community was acquired on behalf of CS1031 Village of Westland Cove Apartments, DST.
This is Capital Square's sixth acquisition of a multifamily community in Tennessee for the DST/1031 exchange program. Village at Westland Cove is located in one of the hottest housing markets in the nation for 2021.1 Employment in the area is exceptionally strong, with the Oak Ridge Reservation and National Laboratory, operated by the U.S. Department of Energy, only 19 miles away, generating 14,667 full-time jobs and wages totaling over $1.3 billion."
Louis Rogers founder and chief executive officer of Capital Square
Completed in 2019, Village at Westland Cove is located at 9635 Westland Cove Way along Interstate 140. The 28.2-acre luxury multifamily community sits on the shore of scenic Fort Loudoun Lake. It offers one-, two- and three-bedroom units averaging 1,147 square feet with best-in-class amenities. The community features include a state-of-the-art fitness center, Amazon lockers and coolers for grocery deliveries, car care center, two pet play areas, coffee bar, business center, food truck nights, gaming patio with bocce ball court, outdoor firepit, outdoor kitchen, club house, swimming pool, kayaks available to residents, as well as lake access via a resident dock.
Village at Westland Cove is located within close proximity of The Pinnacle at Turkey Creek, a 650,000-square-foot shopping center that includes more than 65 retail stores and restaurants. The property is in the 10th hottest housing market in the country for 2021,1 with a 5-year value increase of 55%, according to Zillow Group. Turkey Creek Medical Center, a Level III trauma center that is part of Tennova Healthcare, lies within two miles of the property. Situated further along the I-140 and I-40 are attractions such as Knoxville Museum of Art, Market Square and Zoo Knoxville.
The Oak Ridge Reservation, operated by the U.S. Department of Energy and home to Oak Ridge National Laboratory, is approximately 19 miles from the Village at Westland Cove and is the largest employer in the area. According to the East Tennessee Economic Council, approximately 14,667 full-time jobs were directly provided by the DOE and its major contractors within Tennessee in 2020, with annual wages and salaries totaling nearly $1.311 billion.2 WBIR.com reports that Bill Lee, Tennessee's governor, recently announced a $72 million budget for the UT-Oak Ridge Innovation Institute, a collaboration between the University of Tennessee and Oak Ridge National Laboratory, in a bid to attract and maintain science, technology, engineering and mathematics (STEM) talent in the Knoxville area.3
"Village at Westland Cove is an exceptional multifamily property located in an idyllic setting with luxury amenities throughout," said Whitson Huffman, chief strategy and investment officer. "The local economy is thriving, with low unemployment, high average household income and growing demand for high-end apartment living such as that provided to the residents of Village at Westland Cove."
Data from Esri shows the average household income within a three-mile radius of the property reaches approximately $130,000. According to Yardi Matrix, Knoxville's rental rates are rising along with demand, with 18% year-over-year rent growth and 98.1% average occupancy as of March 31, 2022.
The Bureau of Labor Statistics reports that Knoxville witnessed an increase of over 19,000 job opportunities since February 2021, with unemployment rates reaching 2.8%. According to the BLS, job opportunities in the area should continue to grow with 3M Company announcing plans to invest approximately $470 million to expand their manufacturing facility in the Knoxville MSA, creating 600 new jobs by 2025.4
Taylor Bird, Nelson Abels, Robert Stickel, and Alex Brown of Cushman & Wakefield represented the seller.
Bird, executive director of Cushman & Wakefield, noted, "The Village at Westland Cove offers a truly unique asset coupled with an unrivaled amenity package, interior finishes and beautiful water views."
CS1031 Village of Westland Cove, DST seeks to raise $52.8 million in equity from accredited investors and has a minimum investment requirement of $50,000.
Since its founding in 2012, Capital Square has acquired 146 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 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 executive team has decades of experience in real estate investments. 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 INVESTMENT
Brown Gibbons Lang & Company | June 16, 2022
Brown Gibbons Lang & Company (BGL) is pleased to announce the financial closing of $160 million for the acquisition and development of Auburn 18 Business Park, a 129-acre industrial site in Auburn, Washington. BGL's Real Estate Advisors team served as financial advisor to Industrial Realty Group (IRG), with Oak Street, a Division of Blue Owl, as the capital partner to IRG.
IRG is a nationwide real estate development and investment firm specializing in the acquisition, development, and management of commercial and industrial real estate throughout the United States. IRG, through its affiliated partnerships and limited liability companies, operates a portfolio containing more than 150 properties in 31 states with over 100 million square feet of rentable space.
Oak Street is a real estate investment firm focused on investing in net-leased properties.
Oak Street seeks to form partnerships with best-in-class organizations and real estate developers by creating structures that facilitate our partners' strategic and financial initiatives. We are excited to form a long-term partnership with IRG, one of the leading industrial developers in the country."
Colleen Collins, Managing Director of Oak Street
Auburn 18 Business Park is comprised of approximately 129 acres of land located one mile southwest of the Commercial Business District of the City of Auburn. The property is currently improved with over one million square feet of space, including two large office buildings, seven large warehouse buildings, an operations and maintenance building, and several other small support buildings located throughout the property.
Originally purchased in 1944 by the United States Army as 435 acres of farmland, the site was improved with 20+ dry storage warehouses for use during World War II. In 1962, the U.S. General Services Administration (GSA) took ownership of a 177-acre portion, with multiple WWII warehouses, three 1950s-era warehouses, an administration office, and a water tower. The remaining U.S. Army property was sold to private developers. During the 1990s, GSA donated land to the City of Auburn for a park and the Auburn City School Bus Depot. An additional 8.4 acres was donated to the City of Auburn for its municipal fire training center.
The disposal of the Auburn complex is part of a larger strategy to evaluate underutilized assets and shrink the federal footprint. IRG acquired the Auburn Federal Complex through an online auction process. Renovations to the existing eight warehouse buildings have begun and include fire and life safety upgrades, lighting improvements, and adding additional loading docks, as needed.
With excellent frontage on C Street, this perfectly positioned site offers prime visibility and easy access to WA-18, WA-167, and I-5. The site is within two miles of the Auburn Municipal Airport and the BNSF Rail Yard, as well as various key supply chain, logistics, and manufacturing facilities, including UPS, Starbucks, Safeway, Behr, Gist USA, Boeing, Amazon, Costco, DHL, and REI.
BGL's Real Estate Advisors Group offers comprehensive real estate investment banking services tailored to the middle market. It provides client-focused solutions with an emphasis on real estate advisory, debt, preferred and private equity placement, financial restructuring, recapitalizations, sale-leasebacks, structured finance, and asset acquisitions and dispositions across all asset classes. The team assists real estate owners and developers looking to form alliances and joint ventures with single-source capital providers to gain local and institutional access for all capital needs.
About Blue Owl Capital Inc.
Blue Owl is a global alternative asset manager with $102.0 billion of assets under management as of March 31, 2022. Anchored by a strong permanent capital base, the firm deploys private capital across Direct Lending, GP Capital Solutions and Real Estate strategies on behalf of Institutional and Private Wealth clients. Blue Owl's flexible, consultative approach helps position the firm as a partner of choice for businesses seeking capital solutions to support their sustained growth. The firm's management team is comprised of seasoned investment professionals with more than 25 years of experience building alternative investment businesses. Blue Owl employs over 400 people across 10 offices globally.
IRG is a nationwide real estate development and investment firm specializing in the acquisition, development and management of commercial and industrial real estate throughout the United States. IRG, through its affiliated partnerships and limited liability companies, operates a portfolio containing over 150 properties in 31 states with over 100 million square feet of rentable space. IRG is nationally recognized as a leading force behind the adaptive reuse of commercial and industrial real estate, solving some of America's most difficult real estate challenges.
About Brown Gibbons Lang & Company
Brown Gibbons Lang & Company (BGL) is a leading independent investment bank and financial advisory firm focused on the global middle market. The firm advises private and public corporations and private equity groups on mergers and acquisitions, capital markets, financial restructurings, business valuations and opinions, and other strategic matters. BGL has investment banking offices in Chicago, Cleveland, and Philadelphia, and real estate offices in Chicago, Cleveland, and San Antonio. The firm is also a founding member of Global M&A Partners, enabling BGL to service clients in more than 30 countries around the world. Securities transactions are conducted through Brown, Gibbons, Lang & Company Securities, Inc., an affiliate of Brown Gibbons Lang & Company LLC and a registered broker-dealer and member of FINRA and SIPC.
HOME AND DESIGN
Landsea Homes | July 12, 2022
Landsea Homes Corporation ("Landsea Homes" or the "Company"), a publicly traded residential homebuilder, announced today that longtime and seasoned real estate executive Jeff Wochner has been named the new Central Florida Division President for the company. In his role, Wochner will oversee all homebuilding operations in Florida.
"Jeff is well-equipped to lead Landsea Homes' Florida division into the future. His deep knowledge of the Florida housing market, strong relationships in the region, and passion for excellence will serve the company and our homebuyers well, He offers insightful perspective that will make him an integral part of our expansion and success in one of the strongest housing markets in the country. We look forward to having him on board."
Mike Forsum, President and Chief Operating Officer, Landsea Homes
A veteran real estate executive with seventeen years of industry experience, Wochner most recently served as the Florida Division President for Beazer Homes, another national homebuilder, before joining Landsea Homes. Prior to that, he served as Regional Director of Financial Planning and Analysis at Beazer Homes. Wochner began his career at Shea Homes as a Senior Financial Analyst for the Arizona division.
"It is an honor to join the Landsea Homes team as the new Central Florida Division President," said Wochner. "The company has made their strong and growing presence in the Florida market well known over the last year, and I look forward to helping the team continue on that path of great success."
Landsea Homes recently closed on 103 new homesites in Kissimmee, Florida in the Storey Creek master planned community. The company entered the Florida market in 2021 and has steadily grown its market share over the last year. Landsea Homes accelerated its Florida homebuilding operations further by acquiring Hanover Family Builders earlier this year, positioning Landsea Homes as the seventh-largest homebuilder in Central Florida.
Landsea Homes was recently named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine. Through consecutive strategic moves, the Newport Beach-based home builder saw a historical year of transformation, which landed Landsea Homes the 47th spot on the coveted Builder 100 list, along with the Builder of the Year honors.
About Landsea Homes Corporation
Landsea Homes Corporation is a publicly traded residential homebuilder based in Newport Beach, CA., that designs and builds best-in-class homes and sustainable master-planned communities in some of the nation's most desirable markets. The company has developed homes and communities in New York, Boston, New Jersey, Arizona, Florida, Texas and throughout California in Silicon Valley, Los Angeles, and Orange County. Landsea Homes was named the 2022 winner of the prestigious Builder of the Year award, presented by BUILDER magazine, in recognition of a historical year of transformation.
An award-winning homebuilder that builds suburban, single-family detached and attached homes, mid-and high-rise properties, and master-planned communities, Landsea Homes is known for creating inspired places that reflect modern living and provide homebuyers the opportunity to "Live in Your Element." Our homes allow people to live where they want to live, how they want to live – in a home created especially for them.
Driven by a pioneering commitment to sustainability, Landsea Homes' High Performance Homes are responsibly designed to take advantage of the latest innovations with home automation technology supported by Apple®. Homes include features that make life easier and provide energy savings that allow for more comfortable living at a lower cost through sustainability features that contribute to healthier living for both homeowners and the planet.
Led by a veteran team of industry professionals who boast years of worldwide experience and deep local expertise, Landsea Homes is committed to positively enhancing the lives of our homebuyers, employees and stakeholders by creating an unparalleled lifestyle experience that is unmatched.