KNOXVILLE, TN - Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer and manager of multifamily communities, announced the acquisition of Summit Townhomes, a newly constructed 120-unit build-for-rent (BFR) housing community in Knoxville, Tennessee. The community was acquired on behalf of CS1031 Summit Place BFR Housing, DST, which seeks to raise $18 million in equity from accredited investors and has a minimum investment of $50,000.
Capital Square formed the Private Equity Group managed by experienced real estate executives, Dave Platter and Jon Trott, as managing directors and co-heads, to profit from opportunities in the housing market, including a dedicated build-for-rent strategy in high growth sunbelt markets. This represents Capital Square's fourth BFR offering for the Section 1031/DST program, and the seventh BFR project for the private equity group.
"Capital Square's private equity group is a high-performing team with top-tier executives who are focused on housing strategies, including BFR," said Louis Rogers, founder and co-chief executive officer of Capital Square. "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."
Located at 100 Lisa's Way, construction of Summit Townhomes was completed in 2022. The mix of three- and four-bedroom townhomes average over 1,400 square feet with open floor plans, marble countertops, stainless steel appliances, full size washer and dryers, walk-in closets, smart home integration and extra storage space. Community amenities include a firepit, picnic and barbecue area, private and overflow parking, covered gazebo and bark park.
The property is in close proximity to State Route 62, providing residents with easy access to top employers, such as Oak Ridge National Laboratory, Y-12 National Security Complex, UT-Battelle, Methodist Medical Center of Oak Ridge and Oak Ridge Schools. Summit Townhomes is served by Woodland Elementary School, Robertsville Middle School and Oak Ridge High School, all within a two-mile radius of the property.
Summit Townhomes is under a 30-minute drive from downtown Knoxville. The Knoxville MSA has a population of 747,185 and is projected to increase by 3.6% over the next five years. The University of Tennessee plays a significant role in Knoxville's economy. With iconic landmarks like Neyland Stadium, with a seating capacity of 100,000+, university sports events generate meaningful revenue for local businesses. Moreover, the university employs more than 11,700 people who focus on research, educational programs and partnerships that contribute to the city's overall economic growth.
"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," said Whitson Huffman, co-chief executive officer. "The property has already seen strong performance, accomplishing full lease-up in nine months with 98% current physical occupancy."