DURHAM, N.C. (Nov. 20, 2019) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the sale of an approximately 112,340-square-foot R&D facility in Durham, N.C., near Research Triangle Park. The property was owned by a group of DST investors who realized an approximately 152.12% total return on equity, or a 9.2% annualized return, from their 1031 exchange investment.*
“The sale demonstrates Capital Square’s ability to buy, manage and sell quality real estate for 1031 exchange and other investors nationally,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “This DST offering generated stable cash flow for the past five years and a nice profit on sale. Most investors are continuing their Section 1031 tax deferral by investing in another DST sponsored by Capital Square.”
Capital Square has taken seven DST offerings full cycle since inception that have resulted in an average 13.7% annual return and an average 161.09% return on equity.
Located at 1035 Swabia Court within the 465-acre Imperial Center business park, near Research Triangle Park, the facility is equipped with a heavy-duty HVAC and electrical infrastructure, supported with a 500-kilowatt emergency generator and multiple roof-mounted exhaust fans able to accommodate biological and chemical lab use.
Since inception, Capital Square has acquired 87 real estate assets for over 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
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. Capital Square has completed approximately $1.6 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.com.
*The ROE (“return on equity”) represents the ratio of total sales proceeds and distributions through the life of the asset over the total initial equity invested. The “annualized return” is defined as the difference between net sale proceeds and initial investment, plus the distributions over the holding period, divided by the initial investment; divided by the number of months; times 12. The ROE and annualized return are net of fees and represent a return to an individual investor. No representation is made that any investment will or is likely to achieve profits or losses similar to those achieves in the past or that losses will not be incurred.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing.