Capital Square Realty Advisors bought these Tampa apartments. (Photo courtesy of Capital Square)
A local real estate investment firm is on a spending spree in the Sunshine State.
Capital Square Realty Advisors, headquartered in Innsbrook, paid $31 million this month to acquire a 348-unit apartment property in Tampa, Fla.
The acquisition of the Bridgeview Apartments is the company’s biggest purchase since its founding in 2012 and the second multimillion-dollar Florida housing complex it has scooped up in about three months.
“We had been studying the Florida market, liked the fundamentals of Tampa and saw some stronger signs of recovery in the overall economy there,” said Yogi Singh, who runs the asset management and acquisitions wing of Capital Square.
The deal marks the firm’s fourth acquisition since the beginning of the summer. The company spent a total of $55 million on its four recent acquisitions, Singh said.
Capital Square operates as a 1031 exchange company, whereby investors can buy into individual properties owned by the firm. Investors transfer proceeds from the sale of similar properties while deferring taxes on the profits. Investors then get a slice of rent on the new properties. Capital Square makes its money by charging a flat fee for the management of each property and a one-time acquisition fee to its investors.
The firm’s previous acquisitions include the Ashford Club Apartments in Tallahassee, Fla., a medical office building at East Carolina University in Greenville, N.C., and a retail property in Fort Worth, Texas.
The string of apartment purchases is a diversion from Capital Square’s initial plan to buy up large office buildings with a single tenant signed on for a long-term lease. The firm made its first acquisition last December, paying $20 million for a 112,000-square-foot office building in Milwaukee that houses health-care company ProHealth Care.
“Being a year and a couple of months old, our strategy is developing, and we’re adding some nuances to our strategy,” Singh said. “With as much attention as has been paid to multi-family housing overall, people became a lot more comfortable with investments in the sector.”
Singh said Capital Square has one or two more acquisitions planned for the remainder of 2013.
Capital Square Realty Advisors bought these Tampa apartments. (Photo courtesy of Capital Square)
A local real estate investment firm is on a spending spree in the Sunshine State.
Capital Square Realty Advisors, headquartered in Innsbrook, paid $31 million this month to acquire a 348-unit apartment property in Tampa, Fla.
The acquisition of the Bridgeview Apartments is the company’s biggest purchase since its founding in 2012 and the second multimillion-dollar Florida housing complex it has scooped up in about three months.
“We had been studying the Florida market, liked the fundamentals of Tampa and saw some stronger signs of recovery in the overall economy there,” said Yogi Singh, who runs the asset management and acquisitions wing of Capital Square.
The deal marks the firm’s fourth acquisition since the beginning of the summer. The company spent a total of $55 million on its four recent acquisitions, Singh said.
Capital Square operates as a 1031 exchange company, whereby investors can buy into individual properties owned by the firm. Investors transfer proceeds from the sale of similar properties while deferring taxes on the profits. Investors then get a slice of rent on the new properties. Capital Square makes its money by charging a flat fee for the management of each property and a one-time acquisition fee to its investors.
The firm’s previous acquisitions include the Ashford Club Apartments in Tallahassee, Fla., a medical office building at East Carolina University in Greenville, N.C., and a retail property in Fort Worth, Texas.
The string of apartment purchases is a diversion from Capital Square’s initial plan to buy up large office buildings with a single tenant signed on for a long-term lease. The firm made its first acquisition last December, paying $20 million for a 112,000-square-foot office building in Milwaukee that houses health-care company ProHealth Care.
“Being a year and a couple of months old, our strategy is developing, and we’re adding some nuances to our strategy,” Singh said. “With as much attention as has been paid to multi-family housing overall, people became a lot more comfortable with investments in the sector.”
Singh said Capital Square has one or two more acquisitions planned for the remainder of 2013.