REAL ESTATE INVESTMENT

Capital Square 1031 Acquires New Class A Multifamily Community in Banks County, Georgia

Capital Square 1031 | January 06, 2022

Capital_Square_1031
Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced today the acquisition of a new Class A, 234-unit luxury multifamily community in Commerce, Georgia a part of Metro Atlanta. The community was acquired on behalf of CS1031 Capstone at Banks Crossing Apartments, DST.

Capstone at Banks Crossing Apartments is Capital Square's fifteenth acquisition of an apartment community in Georgia, creating management efficiencies and economies of scale, Capital Square is bullish on Metro Atlanta because the economy is growing rapidly and creating jobs. The population of the Atlanta metropolitan statistical area increased 15.2% between 2010 and 2020, and Commerce, along with nearby areas, has become an important industrial hub for the growing region."

Louis Rogers, founder and chief executive officer of Capital Square. 

Located at 288 E. Ridgeway Road, Capstone at Banks Crossing was recently completed in 2021. Situated in Banks County, on 15.6 acres of land, the community was 97.8% leased as of December 2021.

The community offers one-, two- and three-bedroom units with high-end finishes, including granite kitchen and bathroom countertops, stainless steel appliances and more.

Amenities at the community include a swimming pool with tanning ledge, clubhouse with resident lounges and a kitchen, business center, coffee bar and conference room. Additional features include a fitness center with digital on-demand classes, outdoor grilling stations, package delivery lockers, dog park and pet spa, fire pit and storage units available to rent.

Capstone also benefits from important demand drivers, such as increasing regional employment. Notably, SK Innovation launched construction on the second phase of its $2.6 billion electric battery plant, which will supply about 430,000 electric vehicle batteries per year to Ford and Volkswagen when the factory fully ramps up by the end of 2023.2 SK Innovation forecasts that the plant, located approximately two miles from Capstone, could eventually employ more than 6,000 workers. The operations also plan to bring thousands of other businesses to the area, including suppliers and retail operations, such as restaurants.

Enchem Ltd., a supplier to SK Innovation, announced it would invest $61.4 million to build two new manufacturing plants in nearby Jackson County, creating more than 300 jobs.

Diana Food's $50 million office and food manufacturing and warehouse facility and German laminate and wood flooring underlay manufacturer Selit's $45 million plant are less than one mile from the apartment complex. Additionally, GE Appliances' new distribution center is four miles from Capstone, while Southeast Toyota Distributor's 350,000-square-foot facility is just six miles away.

Meanwhile, Amazon and Walmart have leased more than one million square feet each in nearby Pendergrass, Georgia, while Toyota Industries Compressor Parts America is expanding its manufacturing facility, also in Pendergrass. These companies, and others, have targeted northeast Georgia as ideal for manufacturing and distribution activities.

Capstone is an exceptional addition to the Capital Square portfolio, The property is newly built and caters to higher-end renters in an economically thriving part of Georgia. Expanding employment centers in the region will drive continued population and employment growth, which should lead to even greater demand for quality housing options, such as those provided by Capstone at Banks Crossing Apartments."

Whitson Huffman, chief strategy and investment officer. 

CS1031 Capstone at Banks Crossing Apartments, DST seeks to raise $32 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 over 3,800 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 and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $4.2 billion in transaction volume. Capital Square's executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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 five consecutive years. Additionally, in 2021, the company was ranked 101st on the list of Inc. 5000 Washington D.C. Metro's Fastest-Growing Private Companies. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense's list of fastest growing companies. Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" report in 2019 and 2021 as well as on their "Fantastic 50" reports in 2019 and 2020.

Spotlight

Real estate investment requires strategic asset allocation to maximize returns. Learning the asset allocation process helps improve portfolio performance.

Spotlight

Real estate investment requires strategic asset allocation to maximize returns. Learning the asset allocation process helps improve portfolio performance.

Related News

REAL ESTATE INVESTMENT, MORTGAGE AND LENDING

Rocket Mortgage Addresses Affordability Challenges with New 1% Down Home Loan Program

PRnewswire | May 23, 2023

Rocket Mortgage, the nation's largest retail home lender and part of Rocket Companies (NYSE: RKT), today introduced ONE+, a new 1% down home loan program that will dramatically increase access to homeownership for millions of low-to-moderate-income earning Americans. With ONE+, a homebuyer is only required to make a down payment of 1% of the purchase price and Rocket Mortgage will cover the remaining 2% needed to reach the required threshold for conventional loans. In addition to reducing upfront costs, ONE+ completely eliminates the expensive monthly mortgage insurance fee for the client – which is traditionally required if the buyer places less than 20% down on their purchase. "Rocket Mortgage prides itself on finding innovative solutions and lending programs that help clients achieve their goals in any market cycle. No other lender has a mortgage option that makes affordable homeownership possible for as many Americans as ONE+," said Bob Walters, CEO of Rocket Mortgage. "We talk with people from all walks of life every single day – many of whom are ready to own a home, and could easily make the monthly mortgage payments, but are having trouble saving for a down payment. ONE+ is a response to that feedback and the latest example of Rocket's commitment to creating programs that help make homeownership more attainable." Designed to help everyday Americans achieve homeownership, ONE+ is available to homebuyers purchasing single-family homes – including manufactured homes – whose income is equal to or less than 80% of their area median income (AMI). With this expansive AMI eligibility, Rocket Mortgage estimates that more than 90 million people can meet the income requirements for this program – based on publicly available income data. As an example of the savings possible through ONE+, a homebuyer purchasing a $250,000 home typically needs a minimum of 3% down, or $7,500. Now, they will only need a $2,500 down payment. In addition, ONE+ offers mortgage insurance at no cost to the client, which on a $242,500 loan, can be as much as $245 per month. That improves a homeowner's monthly cash flow and can save as much as $20,500 over the first seven years after closing – the average amount of time mortgage insurance needs to be paid. This is the third initiative Rocket Mortgage has launched in the last six months with affordability in mind. Other programs such as BorrowSmart Access and Purchase Plus focus on addressing challenges for homebuyers in underserved communities. By offering a $3,000 credit with BorrowSmart Access and a $7,500 credit with Purchase Plus, hurdles such as closing costs and down payments are lessened and accessibility is increased. Homebuyers can apply for ONE+ using Rocket Mortgage's industry-leading digital mortgage experience at RocketOnePlus.com and on the Rocket Mortgage mobile app. They can also apply through one of the thousands of mortgage brokers across the country who partner with the lender through Rocket Pro TPO. About Rocket Mortgage Detroit-based Rocket Mortgage is one of the nation's largest home lenders, closing more mortgage volume than any other lender in 2022, and is a part of Rocket Companies (NYSE: RKT). The lender enables the American Dream of homeownership and financial freedom through its obsession with an industry-leading, digital-driven client experience. In late 2015, it introduced the first fully digital, completely online mortgage experience. Since its founding in 1985, Rocket Mortgage has closed more than $1.6 trillion of mortgage volume across all 50 states. Rocket Mortgage is ranked highest in the country for client satisfaction in mortgage origination by J.D. Power. Combining the mortgage origination and servicing studies, Rocket Mortgage has earned 20 total accolades from J.D. Power – the most of any mortgage lender. Rocket Companies, Rocket Mortgage's parent company, ranked #11 on Fortune's list of the "100 Best Companies to Work For" in 2022 and has placed in the top third of the list for 20 consecutive years.

Read More

MARKET OUTLOOK, REAL ESTATE INVESTMENT

Tishman Speyer's The Spiral Earns CoStar's Commercial Development of Year Honors

PRnewswire | April 04, 2023

Tishman Speyer today announced that The Spiral, its recently-completed West Midtown office tower, has won the 2023 CoStar Impact Award for best commercial development in the New York City region. The CoStar Impact Awards recognize exemplary commercial real estate transactions and projects completed in 2022 with significant influence in neighborhoods across 128 major markets in the United States, Canada and the United Kingdom. Designed by BIG-Bjarke Ingels Group, The Spiral rises to 1,031 feet and features a cascading series of landscaped terraces and hanging gardens as its signature element. The terraces ascend one per floor in a spiraling motion to create a unique, continuous green pathway that wraps around the façade of the tower, supplying its occupants with readily accessible fresh air and outdoor space. "Since day one, Tishman Speyer has been focused on making The Spiral the world's most innovative, collaborative and human-centric office environment," said Tishman Speyer Senior Managing Director and Regional Director of New York Chris Shehadeh. "This recognition by CoStar serves as both a validation of our efforts and a testament to the hard work and ingenuity of everyone involved in this project." The Spiral, which is pursuing LEED Gold certification, prioritizes people first through its biophilic design and intense focus on health, wellness and sustainability. Tishman Speyer's forward-looking approach has helped attract a number of the world's most diverse and innovative companies to The Spiral, including industry leaders Pfizer, Debevoise & Plimpton, HSBC, AllianceBernstein, Baker Tilly, NewYork-Presbyterian, SEB and Turner Construction. On the top floor of the 66-story tower, Tishman Speyer has created ZO Clubhouse, a premier amenity center and lounge that is available to all customers in the tower. The Clubhouse features an open-air terrace, panoramic views of New York City, a beautifully furnished lounge, food and beverage service, and multiple spaces for meetings, conferences and events. The Spiral also features Studio, Tishman Speyer's flexible workspace solution, with a full suite of furnished, on-demand availability offerings, including coworking spaces, private suites, conference rooms and hot desk space along with high-speed Wi-Fi, conferencing technology and a dedicated staff. Tishman Speyer is also partnering with award-winning chefs and restaurateurs on three culinary destinations at the base of the 2.8 million square-foot tower. The firm is working with Chef Gabriel Kreuther on a 5,700-square-foot full-service restaurant, as well as an all-day café serving breakfast and lunch, and featuring small plates and specialty wine and cocktails in the evening. Tishman Speyer is also collaborating with Erik Ramirez and Juan Correa, the team behind Llama San and Llama Inn, on a 6,000 square-foot restaurant showcasing Peruvian-Japanese cuisine. The Llama team is also operating the food & beverage program for the ZO. Clubhouse. Located at the intersection of the High Line and the four-acre Bella Abzug Park, The Spiral encompasses an entire city block stretching from West 34th to West 35th Streets and from 10th Avenue to the park. The six-story base of the building incorporates a grand lobby featuring thought-provoking art by a variety of partners. StudioDrift has created a mesmerizing upside-down landscape consisting of kinetic mechanical flowers that gracefully open and close in synchronized motion. Meanwhile, Sourabh Gupta's Botanicals create the illusion of garden ponds, with lush vegetation growing at the edges. About Tishman Speyer Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 33 key markets across the United States, Europe, Asia and Latin America. Our portfolio spans market rate and affordable residential communities, premier office properties and retail spaces, industrial facilities, and mixed-use campuses. We create state-of-the-art life science centers through our Breakthrough Properties joint venture, and foster innovation through our strategic proptech investments. With global vision, on-the-ground expertise and a personalized approach, we are unparalleled in our ability to foster innovation, quickly adapt to global and local trends and proactively anticipate our customers' evolving needs. By focusing on health and wellness, enlightened placemaking and customer-focused initiatives such as our tenant amenities platform, ZO, and our flexible space and co-working brand, Studio, we tend not just to our physical buildings, but to the people who inhabit them on a daily basis. Since our inception in 1978, Tishman Speyer has acquired, developed, and operated 531 properties, totaling 221 million square feet, with a combined value of approximately $130 billion (U.S.). Our current portfolio includes such iconic assets as Rockefeller Center in New York City, The Springs in Shanghai, TaunusTurm in Frankfurt and the Mission Rock neighborhood currently being realized in San Francisco.

Read More

REAL ESTATE TECHNOLOGY, MORTGAGE AND LENDING

Axar Capital and Morning Calm Launch Morning Axe Management - A New Dedicated Real Estate Lending Platform Focused on the Middle Market

Businesswire | May 08, 2023

Axar Capital Management LP (“Axar”) and Morning Calm Management, LLC (“Morning Calm”) today announced the launch of Morning Axe Management (“MAM” or the “Company”), a real estate lending platform formed to offer capital solutions by originating senior loans and mezzanine loans in commercial real estate nationwide. The Company will invest and manage discretionary capital on behalf of life companies and other institutional investors. Morning Axe will setup dedicated headquarter operations in Des Moines, IA with future origination teams spread across the country. Morning Calm is a vertically integrated real estate investment and management platform with a focus on special situation investing. Axar is a value-oriented investment firm focused on highly flexible, opportunistic investing in the corporate middle market. Since their respective inceptions, Morning Calm and Axar have deployed over $5.0 billion of capital, including real estate investments in target property sectors. The MAM platform launches with access to approximately $250 million of capital via a separately managed account. MAM has also engaged Raymond James to support additional institutional fund raising. MAM’s strategy is to bring new solutions to commercial property borrowers as traditional lenders work through legacy issues and otherwise seek to deleverage in a rapidly changing market environment. MAM’s new credit and structured finance platform aims to fill that gap. Target property sectors include industrial, multifamily, retail, self storage and office, among others. “The convergence of rising rates and the decreased availability of real estate credit has created an opportunity for MAM to be a solution to borrowers looking to acquire properties or refinance existing loans. As liquidity remains scarce in the real estate capital markets, we will be well-positioned to be a preferred partner to leading sponsors,” said T.J. Heither, Head of National Originations. “The combination of Morning Calm and Axar Capital bring complementary skill sets, a long history of successful partnerships and significant infrastructure that will allow MAM to efficiently scale and diversify our portfolio of investments.” Prior to joining MAM, Mr. Heither was most recently the Senior Vice President, National Commercial Real Estate, at Susser Bank. Prior to that he held origination and investing roles at Mutual of Omaha Bank and Principal Global Investors. “This new platform will help borrowers access capital in a challenged market that has seen some of the largest lenders reducing their appetite for risk,” said Mukang Cho, Founder and CEO of Morning Calm. “The real estate credit market has diversified and grown significantly in recent years, and its recent dislocation creates a large void for MAM to fill.” About Axar Capital Management LP Axar Capital Management LP is a value-oriented investment firm focused on highly flexible, opportunistic investing in the corporate middle market. Axar's investment team focuses on opportunities across the capital structure in complex situations as a provider of debt and equity solutions that allow its management teams and portfolio companies to realize their long-term value potential. About Morning Calm Management Morning Calm Management is a vertically integrated real estate management firm with a focus on special situation investing. Through its affiliates, the firm owns and manages approximately 10 million square feet of commercial real estate throughout the United States on behalf of private and institutional capital.

Read More