Capital Square buys Cosby Village apartment complex for $ 86 million


Livingston Apartment Flats was sold last month for $ 86 million. (Courtesy of Capital Square)

Continuing a string of high-priced apartment offers, Henrico-based Capital Square has purchased another newly built complex, this time in a rapidly developing pocket of Chesterfield County.

The company known for its so-called 1,031 exchanges announced that it had purchased the 307 Livingston apartments in the Cosby Village development for $ 86 million. The July 29 transaction had not been registered with the county on Wednesday.

The seller was Cosby Village Residences LLC, an Alabama-based entity related to Liv Development, which developed the 9.3-acre property after purchasing it in 2019 for $ 6 million.

Pentecost Huffman

Whit Huffman, director of strategy and investments for Capital Square, said the property was attractive for its location in Cosby Village and rapid leasing since opening last year.

“Livingston Apartment Flats in particular was appealing because it is a top notch community, it was rented exceptionally quickly and, at present, it is almost 100% rented,” said Huffman. “We believe there is a strong opportunity to improve value but also to have a very good result for our long term investors.”

Chesterfield recently valued the developed property at $ 34.35 million.

With an average rental rate of around $ 1,600 per month, apartments consist of one, two and three bedroom units. Community amenities include a two-story fitness, yoga, and cross-training center, open 24 hours a day; a workspace; a conference room and offices; and a games room with pool and shuffleboard tables and a wet bar.

The property also includes a saltwater swimming pool, cabanas and play lawn, as well as a package room, bicycle repair shop, snack bar and cafe. The facility also includes a dog park and pet washing station, an outdoor fire pit and a car charging station.

Part of Cosby Village, the 68-acre mixed-use development run by Midlothian-based Main Street Homes, Livingston Apartment Flats is also adjacent to a Publix grocery store and retail options that Huffman says set it apart from the crowd. other multi-family properties in the Capital Square portfolio.

The deal is the latest in a series of local acquisitions for Capital Square.

In June, it bought the 192-unit Sapphire from CenterPointe on Charter Colony Parkway for $ 48.3 million. At the end of last year, the company paid $ 83.75 million for the 301 Canopy units at Ginter Park Apartments in Richmond’s Northside.

A view to the south of the apartments with the Publix anchored shopping center next to them along Otterdale Road. (BizSense File)

It offloaded some properties, including the 268 Maple Springs Apartments for $ 34.8 million in April, and the company is also actively developing its own properties, such as its Scott’s Collection three-building project at Scott’s Addition.

Founded in 2012 by Louis Rogers, Capital Square has been on that tear despite some uncertainty surrounding the 1,031 exchanges it has made its name on, literally. Formerly known as Capital Square 1031, the company focuses on such exchanges whereby investors can defer the payment of capital gains taxes from one investment property to another.

A proposal to help fund President Joe Biden’s $ 1.8 trillion US Family Plan would eliminate capital gains tax breaks involving transactions with profits above $ 500,000. Should the proposal go ahead, Rogers said his company has a safety net in the form of real estate investment trusts, or REITs, in which investors exchange properties through property shares. in the REIT.

Since 2012, Capital Square has acquired 134 real estate assets for more than 3,300 investors through 1,031, the company said.

In the first half of this year, Huffman said, Capital Square completed more than $ 500 million in acquisitions, most of which focused on housing properties such as Livingston Apartment Flats.

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