CS1031 Midway Estates MHC, DST
Midway Estates is a 55+ lifestyle manufactured housing community with 183 total homesites located in the City of Vero Beach, a boutique retirement destination on the Atlantic coast of Florida.
Unique potential for value-add opportunity to increase rents and homesite infill. Capital Square will deliver new homes to 54 currently vacant sites, approximately 30% of the total homesite count, bringing the community to full occupancy over the hold period.* There is an average in-place homesite rent of $585, approximately 27% below the market average of $720. Homesite rents for new residents will start at the market average of $720 and increase annually through organic rent growth. Capital Square will increase the in-place rents gradually through annual mark-to-market increases in addition to organic market growth. Capital Square intends to make approximately $3.8 million of strategic improvements, significantly enhancing the quality, increasing occupancy, rents, and ultimately property value. The improvements will support future rent increases. Capital Square is acquiring Midway Estates at a capitalization rate of 3.86% in the first year, while the average capitalization rate for the 10-year hold is projected to be 8.26%.
*“Tax-Advantaged” refers to any type of investment that is either exempt from taxation, tax-deferred, or that offers other types of tax benefits. Capital Square is a national sponsor of investment opportunities that can provide such benefits via our 1031 exchange and opportunity zone offerings, among others. Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Midway Estates MHC, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
An investment in the Interests involves substantial investment and tax risks, including, without limitation, the following risks: • Past performance is not a guarantee of future results.
- The economic success of the Interests will depend upon the results of operations of the Property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the Property difficult or unattractive.
- The Master Tenant’s capitalization is supported solely by the cash flow from the underlying tenant lease. The Sponsor is not under any obligation to contribute capital to the Master Tenant.
- No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
- No assurance can be given that Beneficial Owners of Interests will realize a substantial return (if any) on their investment or that they will not lose their entire investment in the Trust.
- There are various risks associated with owning, financing, operating and leasing manufactured housing communities in Florida.
- The Interests do not represent a diversified investment.
- Beneficial Owners must completely rely on the Master Tenant to collect the rent and operate, manage, lease, and maintain the Property.
- The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the property.
- There are various conflicts of interest among the Trust, the Sponsor, the Signatory Trustee, and their Affiliates.
- The Interests are illiquid.
- There are tax risks associated with an investment in the Interests.
- There are risks related to competition from properties similar to and near the property.
- There may be environmental risks related to the property.
- Private Placements are speculative.
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LocationVero Beach, FL
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Overview
A 55+ lifestyle manufactured housing community (MHC) with 183 total homesites located in the city of Vero Beach, a boutique retirement destination on the Atlantic coast of Florida
