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.