Capital Square 1031 Reports Second-Highest Total Return Following DST Property Sale

August 6, 2021

Capital Square 1031, a sponsor of Delaware statutory trust offerings, has sold Galeria del Rio, a 101-unit townhome community in Tucson, Arizona, for $32 million on behalf of a group of DST investors.

The property was originally purchased in March 2016 for approximately $21.1 million. According to Capital Square, the DST investors realized a 222.23 percent total return, or a 23.04 percent annualized return, from their 1031 exchange investment.

“This is the twelfth offering Capital Square has taken full cycle, resulting in exceptional returns for investors,” said Louis Rogers, founder and chief executive officer. “The sale of Galeria del Rio generated the second-highest total return for a DST sponsored by Capital Square…It’s not surprising that most investors reinvested their proceeds in a new DST sponsored by Capital Square to continue the tax deferral.”

Galeria del Rio sits on 11.5 acres and consists of 35 two-story buildings, with three- and four-bedroom townhome units. Each unit comes with 2.5 bathrooms, an attached two-car garage and a small private enclosed back yard. Property amenities include 24-hour controlled access, an outdoor swimming pool, a community roof deck area and a fitness center. Additional amenities include a community club room and 70 parking spaces.

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