Capital Square Expands BFR Footprint with Summit Townhomes Acquisition in Knoxville
In a bid to further its presence in the build-for-rent (BFR) housing sector, Capital Square has strategically acquired Summit Townhomes, a newly constructed 120-unit housing community, in Knoxville, Tennessee. Demonstrating their commitment to growth and innovative housing strategies, the acquisition was made on behalf of CS1031 Summit Place BFR Housing, DST, attracting accredited investors with an aim to raise $18 million in equity.
This move is the product of Capital Square’s dedicated efforts to leverage opportunities in the high-potential sunbelt markets. Driven by co-heads Dave Platter and Jon Trott, the Private Equity Group formed by Capital Square now marks its fourth BFR offering for the Section 1031/DST program and the seventh BFR project overall for the group. One cannot help but acknowledge the remarkable foresight and astute management of the group.
Louis Rogers, the co-founder and CEO of Capital Square, remarked, “Capital Square’s private equity group is a high-performing team with top-tier executives who are focused on housing strategies, including BFR. This will be one of the largest BFR platforms in the nation. We have previously reported that Capital Square has secured its first institutional partner for the BFR strategy and has now closed on the seventh BFR community, Summit Townhomes, for the DST program.”
The Summit Townhomes blend modern amenities with community-focused features. Completed in 2022, the townhomes offer spacious layouts with luxury finishes and smart home integrations, aimed at attracting discerning renters seeking quality housing options. The community’s location further amplifies its appeal, lying within easy access of major employment centers and high-quality schools, enhancing its attractiveness to potential residents.
In addition to its thoughtful design and strategic location, the property aligns with Capital Square’s vision of investing in areas with strong economic ties and growth prospects. The Knoxville metropolitan area, with its stable rental market, robust university-driven economy, and projected population growth, presents an excellent backdrop for such an investment.
Whitson Huffman, Co-CEO, highlighted Knoxville’s robust market attributes, “Knoxville is an attractive and promising real estate market, offering a combination of affordability, a stable rental market driven by universities and government employment, steady economic growth, and a favorable income tax policy.” Testament to the project’s success, the property achieved full lease-up in just nine months and boasts a 98% current physical occupancy, according to Huffman.
Aligning innovation with strategic investment, Capital Square’s latest acquisition of Summit Townhomes in Knoxville underlines the enduring appeal and potential of the BFR sector. It reflects a clear vision for the future of multifamily living spaces, combining quality, location, and community as key drivers of sustained growth and tenant satisfaction. This approach exemplifies the industry’s best practices, demonstrating Capital Square’s role as a thought leader in the multifamily space.