The acquisition is for a DST investment offering that seeks to raise $16.9 million in equity from accredited investors.
Fort Collins, Colo. (Feb. 25, 2021) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of a two-building, 115,627-square-foot research and development industrial campus in Fort Collins, Colorado. The property was acquired for CS1031 Colorado Power, DST, a Reg. D private placement.
“Capital Square is pleased to add a high-quality industrial property to our growing portfolio of diversified DST investments for Section 1031 and others seeking tax-advantaged investment opportunities nationwide,” said Louis Rogers, founder and chief executive officer of Capital Square. “The property has an exceptional tenant in Advanced Energy Industries, Inc., a global engineering firm with diversified revenue streams and multiple growth opportunities.”
Located at 1625 Sharp Point Drive and 2424 Midpoint Drive, the property is occupied by Advanced Energy Industries Inc., a global engineering firm that designs and manufactures power conversion equipment used in devices such as medical equipment, semiconductors, plasma displays and data center computing. The company was founded in 1981 and has occupied the property since it was constructed in 1987.
Situated on 9.67 acres of land, the property is 100% leased with approximately 15 years remaining on a triple net lease with annual rental increases of 2.5% and two five-year renewal options.
CS1031 Colorado Power, DST seeks to raise $16.9 million in equity from accredited investors and has a minimum investment of $50,000. Alexandra Huffman and Dean Huber with Walker & Dunlop sourced the acquisition loan, which was financed by Citigroup with a 3.87% fixed rate 10-year loan.
“One of the most compelling aspects of this industrial investment property is the fact that it has been occupied by one of the leading engineering firms in the world since 1987, and which has extended their commitment to the property with a new 15-year, triple net lease and multi-million-dollar plans for state-of-the-art upgrades to the facilities,” said Whitson Huffman, chief strategy and investment officer. “We are very pleased to add this high-quality research and development industrial campus to our portfolio of investments available to Section 1031 exchange and other accredited investors.”
Jeremy Ballenger, executive vice president, CBRE Capital Markets, represented the seller in the transaction, while Capital Square represented itself.
Since the company was founded, Capital Square has acquired 124 real estate assets for over 2,700 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 and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $2.6 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. 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. To learn more, visit www.CapitalSquare1031.com.
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. Diversification does not guarantee profits or protect against losses.