#United States #Richmond #Capital Square #Short Pump #Everleigh

Capital Square's New Active Living Offering

Capital Square, a prominent player in tax-advantaged real estate investments, has unveiled its latest venture—the CS1031 Richmond Active Adult Living Apartments, DST. This new offering comes with an investment amount of $33.3 million, which gives accredited investors an opportunity to own shares in a 165-unit, Class A, age-restricted multifamily community located in the Richmond suburb of Short Pump.

Louis Rogers, the founder and co-CEO of Capital Square, pointed out that communities like Everleigh Short Pump epitomize the important intersection of demographic trends, lifestyle preferences in housing, and resilient long-term fundamentals. The current market is seeing 1031 exchange investors actively looking for high-quality properties that promise a mix of income potential and long-term benefits. In this context, well-situated, age-restricted multifamily investments are increasingly becoming vital components within a diversified real estate portfolio.

The Everleigh Short Pump community is impressive, with an occupancy rate of 95.7%. The apartments are spacious, offering one, two, and three-bedroom layouts averaging 1,001 square feet, designed with nine-foot ceilings and high-end interior finishes. Residents can enjoy a wealth of amenities including a heated swimming pool, a yoga studio, a sun deck, a spacious great room, and even a theater room. Directing engaging events and programs, an activities director is on-site to facilitate fitness initiatives, happy hours, and creative educational classes aimed at enriching the resident experience.

The surrounding area of Short Pump further enhances the appeal of this investment. Eli Lilly, a global pharmaceutical giant valued at $800 billion, is in the process of establishing a $5 billion manufacturing facility across 227 acres, creating approximately 650 permanent jobs alongside 1,800 construction jobs. The LEGO Group has also begun the construction of a two-million-square-foot distribution center in Prince George County nearby, investing over $360 million and creating 300 jobs in the process.

Known for its juxtaposition of historical essence and contemporary amenities, Richmond is celebrated for its outdoor offerings along the James River and a dynamic culinary scene. The Short Pump region alone boasts around 5.5 million square feet dedicated to retail, dining, and entertainment, allowing residents effortless access to a plethora of options. Everleigh Short Pump is strategically located adjacent to a Kroger store and within a mile of Broad Street, the primary route for Short Pump, ensuring easy access to the broader Richmond area.

Whitson Huffman, co-CEO and chief investment officer at Capital Square, articulates a strong belief in Richmond's position as a stable and attractive demographic market in the Southeast. Unemployment rates for Virginia and the Richmond metro area are commendably low at 3.7%, notably under the national average of 4.3%. Economic development data indicates that Richmond’s population has surged by roughly 11% over the last decade, signifying a well-structured economic landscape that supports sustained housing demand driven by significant and steady in-migration.

Within a five-mile radius of the Everleigh Short Pump property, around 30% of the residents are aged 55 and over, indicating a substantial and expanding older demographic, while an additional 12% fall within the age bracket of 45 to 54.

Since its inception in 2012, Capital Square has successfully acquired more than 175 real estate assets representing over 6,500 investors interested in high-value replacement properties for tax deferral under Section 1031 of the Internal Revenue Code. This initiative continues to be pivotal for those seeking stable cash flow and capital appreciation in their investment portfolios.

About Capital Square

Capital Square operates as a vertically integrated real estate firm with a specialty in tax-advantaged investment avenues, including Delaware statutory trusts tailored for Section 1031 exchanges. The company also engages in active development and management of multifamily communities. Over the past decade, Capital Square has successfully completed transactions exceeding $7.9 billion in total volume. The firm's mixed-use developments account for over 2,000 apartment units and are valued at more than $800 million. With a diverse management portfolio of over 13,000 apartments across various states, Capital Square continues to deliver comprehensive services in due diligence, acquisition, property management, and more to a growing clientele that includes high-net-worth investors and private equity firms. The company has earned a spot on the Inc. 5000 list for nine consecutive years, recognizing its rapid growth and resilience in the changing real estate landscape.