#United States #Chattanooga #Capital Square #Build-for-Rent

Capital Square Achieves Full Subscription for Valley Ridge Community in Record Time

In a remarkable achievement, Capital Square announced that its offering, CS1031 Valley Ridge BFR Housing, DST, has been fully subscribed in record time. This Regulation D private placement, which includes a newly developed 129-unit build-for-rent (BFR) community located near Chattanooga, Tennessee, raised an impressive $20.25 million in equity from accredited investors. Acquired in October 2024, this community reinforces Capital Square's commitment to providing high-quality housing solutions.

Louis Rogers, the founder and co-CEO of Capital Square, expressed confidence in the rapid adoption of the BFR housing strategy within the DST industry. This achievement demonstrates a growing appetite for desirable real estate offerings that align with consumer expectations. With construction completed in 2023 by D.R. Horton, the largest homebuilder in the nation by volume, Valley Ridge offers modern amenities across a mix of three-, four-, and five-bedroom detached single-family homes. Each unit provides an average of 1,874 square feet and features high-end finishes, including stainless steel appliances, full-size washer and dryer setups, and smart home integrations.

The community stands out with its professionally landscaped gardens, pet-friendly policies, and advancements in onsite management, providing 24-hour maintenance and community-wide irrigation. Located at 10 Draught St. in Rossville, this development is within the fourth-largest metropolitan statistical area in Tennessee, showcasing the strategic positioning of the project.

Valley Ridge's unique market position comes amid limited competition, with only 409 multifamily units delivered in the area since 2014. As of now, there are no similar units under construction or proposed, highlighting the community's potential for success in a desirable real estate market. The Chattanooga area boasts a strong economic foundation, driven by its robust job sectors including healthcare, technology, advanced manufacturing, and tourism. Major employers, such as Volkswagen and Amazon, have established significant operations in the area, solidifying its reputation as a hub for innovation and growth.

Chattanooga has earned notable accolades, including being ranked first in the country for year-over-year growth rates according to the John Burns Single-Family Rent Index, and recognized as the #2 Best City to Work From Home by TechNational in 2024. This growth reflects the city's appeal to a diverse range of residents and businesses looking for quality living conditions and employment opportunities.

Capital Square, known for sponsoring a variety of BFR investment offerings comprising over 1,200 units across seven states since its inception in 2012, has rapidly gained a significant presence in the market. The company has effectively managed to acquire over 170 real estate assets for more than 6,500 investors seeking advantageous tax deferral opportunities under Section 1031 of the Internal Revenue Code. Furthermore, Capital Square plays an active role in property management with over 11,000 apartments currently under its oversight.

As the demand for such living environments continues to grow, Capital Square plans to leverage its established expertise to explore further development opportunities. Industry experts indicate that the demand for high-quality, accessible housing is likely to persist, suggesting that investments in projects like Valley Ridge could yield robust returns over time.

With the landscape of rental housing evolving, Capital Square's successful full subscription of the Valley Ridge community is not just a win for the company but also a beneficial development for the entire Chattanooga region, promising growth, employment opportunities, and improved living conditions for its residents.

For more information about Capital Square and its various investment offerings, visit CapitalSq.com.