Washington DC CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Capital Square Completes $72M UPREIT Deal on Virginia Beach Apartments
Capital Square has closed an UPREIT transaction for Saltmeadow Bay Apartments, a Class A, 229-unit multifamily community in Virginia Beach, VA, located less than a mile from the Virginia Beach boardwalk. In the UPREIT transaction, more than 85% of the DST investors (by value) exchanged their DST interests for operating partnership units in Capital Square Apartment REIT Inc. on a tax-deferred basis under Section 721 of the Internal Revenue Code.
Capital Square originally acquired the property for $48.6 million in 2019 as sponsor of a DST/Section 1031 exchange program. As a result of the $72-million UPREIT transaction, the DST investors realized an approximately 161% total return.
“By combining favorable tax treatment with increased cash flow, greater diversification and many REIT benefits, the UPREIT transaction was an overwhelming success in spite of current challenges in the economy,” said Louis Rogers, founder and co-CEO of Richmond, VA-based Capital Square.
- ◦Sale/Acquisition
