WILLIAMSBURG, VA - Capital Square, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced the acquisition of a 207-unit, value add multifamily community in Williamsburg, Virginia. The community was acquired on behalf of CS1031 Sterling Manor, DST.
"Sterling Manor Apartments in historic Williamsburg, Virginia is an exceptional addition to Capital Square's growing portfolio of apartment communities in the southeast," said Louis Rogers, founder and chief executive officer of Capital Square. "An investment in Sterling Manor combines stable cash flow and appreciation with value added from upgrading the original apartment units. Capital Square continues to own the home court as the top apartment buyer in the region."
Located at 155 Sterling Manor Drive, the five-building luxury apartment property offers townhomes and garden-style apartments with spacious floorplans and best-in-class finishes. The community was constructed in 2008 and features 137 renovated units, and the sponsor intends to renovate the remaining 70 units to capture additional rental income. The property amenities include a swimming pool, fitness center, resident lounge, business center, grilling/BBQ area, game room, bicycle storage, private balconies, package lockers, surface parking, and detached garages.
Sterling Manor is located in a thriving submarket that features average annual household income in excess of $100,000and a strong multifamily occupancy rate of 96.6 percent, according to Claritas. The region is exceptionally strong, with 2,917 apartment units delivered and 3,914 apartment units absorbed during the last 12 months, a vacancy rate of 4.8%, and 12-month asking rent growth of 12.2%. Axiometrics projects average annual rent growth of 12.4 percent in the submarket between 2022 and 2023.
"Sterling Manor is a luxury multifamily investment opportunity for investor seeking upside in a value-add strategy," said Whitson Huffman, chief strategy and investment officer. "The property features high-end amenities in a high-income market with strong occupancy and growing demand for quality multifamily living."
Just 1.1 miles from the campus of the historic College of William & Mary, one of the oldest and most storied universities in the United States, and 2.5 miles from Colonial Williamsburg, Sterling Manor resides in a virtual time capsule of American history. Williamsburg's economy is tourism-based and driven by Colonial Williamsburg, the largest outdoor educational living museum in the country which provides immersive and authentic 18th-century programming for hundreds of thousands of tourists annually, and two theme parks: Busch Gardens Williamsburg and Water Country USA. In 2015, an estimated 2.78 million guests attended Busch Gardens Williamsburg, ranking it twentieth in overall attendance among amusement parks in North America.