Capital Square Expands Investments with New Rental Community

Capital Square Acquires Rental Community to Boost Investment Portfolio

Capital Square, a prominent name in tax-advantaged real estate investments, is making waves in the housing sector with its recent acquisition of Valley Ridge, a 129-unit build-for-rent (BFR) community. This new addition is located in the suburb of Rossville, which has been gaining traction for its excellent residential environment. Capital Square's strategic investment aims to address the growing demand for rental housing.

Strategic Growth through Build-for-Rent Model

This acquisition marks Capital Square's sixth BFR project aligned with its Section 1031/DST program. With a focus on providing quality rental options in high-demand markets, the private equity group led by co-chief investment officers, Dave Platter and Jon Trott, is poised to tap into the potential of the housing market. Their vision for dedicated build-for-rent strategies continues to attract interest from various investors who value the stability and growth opportunities in this sector.

Why Build-for-Rent is Gaining Popularity

The build-for-rent strategy is emerging as a favorite among investors and financial advisors alike. As noted by Louis Rogers, founder and co-CEO of Capital Square, having a direct real estate investment under a skilled asset manager mitigates risks associated with traditional housing investments. With recent trends showing a decline in interest rates, the financial prospects for investors are looking more favorable, enhancing cash flow opportunities.

Features of the Valley Ridge Community

Valley Ridge, situated at 10 Draught St., boasts modern construction completed in 2023 by D.R. Horton, known as the country’s largest homebuilder. The community features a variety of three-, four-, and five-bedroom detached homes, with generous layouts averaging 1,874 square feet. Each unit has high-end specifications, including smart home technologies and convenient two-car garages, appealing to quality-oriented renters.

A Desirable Location with Growth Potential

As part of the Chattanooga metropolitan area, well-known for its robust economy, Valley Ridge offers promising occupancy rates and impressive rent growth forecasts. The region not only ranks high for living standards but also fosters a culture of business and innovation. The diverse local economy, driven by sectors like healthcare, education, and technology, presents a flourishing market for rental homes.

Chattanooga’s Economic Landscape

The economic climate in Chattanooga is vibrant, characterized by key sectors like advanced manufacturing with major employers such as Volkswagen and Amazon. The healthcare sector has also seen substantial growth, employing over 40,000 individuals through institutions like Erlanger Health System. Furthermore, local educational establishments ensure a pipeline of skilled workers ready for various industries.

Capital Square’s Commitment to the Area

With nearly 1,300 owned units in the Chattanooga area, Capital Square is establishing itself as a significant stakeholder in the local real estate market. The limited availability of new multifamily units in Rossville makes the Valley Ridge acquisition particularly strategic; it showcases the firm’s agility in responding to market demands. Having achieved a physical occupancy rate of 90%, Valley Ridge positions itself as a successful project despite being recently developed.

About Capital Square

Since its inception in 2012, Capital Square has focused on ensuring quality real estate investments for over 6,500 investors, providing tax-deferral solutions while emphasizing stability and capital appreciation. The company’s objective is to deliver promising investment opportunities through its dedicated real estate services aimed at both individual and institutional investors.

Frequently Asked Questions

What is Valley Ridge?

Valley Ridge is a newly constructed 129-unit build-for-rent community located in Rossville, Georgia.

Who developed Valley Ridge?

The community was developed by D.R. Horton, the largest homebuilder in the nation.

What investment strategy does Capital Square use?

Capital Square focuses on tax-advantaged real estate investments, particularly in the build-for-rent sector.

Why is build-for-rent significant now?

The build-for-rent model provides a reliable investment opportunity amidst rising demand for quality rental housing.

How many units does Capital Square own in Chattanooga?

Capital Square owns approximately 1,300 multifamily properties in the Chattanooga area.

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