Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
Offering summary
CS1031 Colony at Centerpointe Apartments DST is a Delaware Statutory Trust offering sponsored by Capital Square. The offering involves the acquisition of a 255-unit garden-style apartment community located at 14400 Palladium Drive in Midlothian, Virginia, which was completed in 2016. The total offering price is $84,724,000, based on a property acquisition price of $74,600,000. Financing includes $41,774,000 in fixed-rate debt at 5.02% interest and an offering equity raise of $42,950,000, representing an offering LTV of 54.3%. The underwritten debt service coverage ratio is 1.89x, with an acquisition cap rate of 5.28%. Investors are projected to receive a Year 1 income distribution of 4.36% and an average full-term income distribution of 4.95%. Total upfront fees and offering expenses are $4,144,675, representing 13.57% of acquisition costs.
0.0% of the offering is closed
$42,950,000 still available
$42,950,000
$0
0.0% of offering$0
Pending subscription$42,950,000
Open for subscriptionThe trust is raising $42,950,000 in investor equity against a total offering capitalization of $84,724,000. Upfront syndication and offering loads total $4,144,675, including a $298,400 acquisition fee, $171,800 dealer fee, $429,500 wholesaling fee, $536,875 in O&O expenses, and $429,500 each for BD due diligence and marketing allowances. Selling broker commissions are not disclosed in the provided excerpts.
Sector
Garden-style apartment community
Investment Category
DST
Projected First Year Cashflow
4.36%
Avg. 4.95% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$84,724,000
$332,251 per unit
Offering Debt
$41,774,000
5.02%
LTV
54.3%
On acquisition price
Units / Tenants
255
14400 Palladium Drive Midlothian, Virginia 23114
Property Age
The property was completed in 2016.
The subject asset is a 255-unit garden-style apartment community constructed in 2016 in Midlothian, Virginia. The property was acquired for $74,600,000 at a 5.28% acquisition cap rate, supported by $41,774,000 in fixed-rate debt at 5.02%. The trust is raising $42,950,000 in equity, with projected distributions starting at 4.36% in Year 1.
Favorable Debt Terms
5.02% Fixed / 1.89x DSCRThe trust utilizes fixed-rate debt at 5.02% with an underwritten debt service coverage ratio of 1.89x at a moderate 54.3% LTV.
Substantial Reserve Capitalization
$2,294,947The capitalization funds $2,294,947 in dedicated improvement reserves along with $3,209,362 in reserves from loan proceeds.
Local Market Footprint
19 Properties / 4,200+ UnitsCapital Square oversees 19 multifamily properties totaling over 4,200 apartments across the Richmond metropolitan area.
Upfront Load and Expenses
13.57% ($4,144,675)Total front-end offering fees and expenses equal $4,144,675, representing 13.57% of property acquisition costs.
Substantial Disposition Fee
$4,227,685The trust schedule provides for a disposition fee of $4,227,685 payable upon sale of the real estate.
Undisclosed Experience and Commission Data
Not DisclosedSpecific DST track record details, sponsor employee headcount, and selling commissions are not disclosed in the offering materials.
The financing structure provides stability through fixed-rate debt at 5.02% and a DSCR of 1.89x at a moderate 54.3% LTV. The sponsor, Capital Square, maintains strong regional depth, overseeing 19 multifamily properties totaling over 4,200 apartments in the Richmond metropolitan area. In addition, the offering funds significant cash reserves, including $2,294,947 for improvements and $3,209,362 from loan proceeds.
Offering Equity
50.7% of offering
Offering Debt
54.3% LTV on acq.
Acquisition Cost
49.3% of offering
Offering Expenses
4.9% of offering
Reserves
6.9% of offering
Unallocated / other uses
38.9% of offering
Total Offering
$84.72M
Equity $42.95M + debt $41.77M
Acquisition Cost
$41.77M
49.3% of offering to the property
Total Fees & Expenses
$4.14M
4.89% of offering
Reserves
$5.85M
6.9% of offering
Sources of funds total $84,724,000, consisting of $42,950,000 in equity and $41,774,000 in debt financing. Uses include the $74,600,000 acquisition purchase price, $4,144,675 in total offering expenses and fees, $436,061 in title and recording costs, and $1,031 in finance expenses. Capitalized reserves include $2,294,947 for improvements, $3,209,362 from loan proceeds, $238,163 in lender-required reserves, and $108,694 in master tenant reserves.
Tone reflects relative strength, not a rating
Interest Rate Risk
PositiveDebt is locked at a fixed rate of 5.02% with a 54.3% LTV and a healthy 1.89x DSCR.
Front-End Load
CautionTotal upfront fees and offering expenses equal $4,144,675, representing 13.57% of acquisition costs.
Exit and Disposition Costs
CautionThe trust agreement includes a disposition fee of $4,227,685 and a 1.00% fee on any future refinancing.
Information Disclosures
ObservationHistorical DST performance data, total sponsor employee count, and selling commissions are not disclosed.
The offering carries an upfront fee burden of 13.57% of acquisition costs ($4,144,675) and a backend disposition fee of $4,227,685 upon property sale. If refinancing occurs, an additional 1.00% fee on the new principal amount will apply. Furthermore, the sponsor's historical DST track record, employee headcount, and selling broker commission structure are not disclosed.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
4.89%
Total fees ÷ offering price
Load on Equity
9.65%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
113.6%
Offering price ÷ acquisition price
Price per Unit
$332,251
Offering price ÷ 255 units
Distribution rates as extracted from the offering materials.
The total offering capitalization of $84,724,000 represents a $10,124,000 spread over the $74,600,000 property acquisition price. Total front-end fees and offering expenses equal $4,144,675, which accounts for 13.57% of upfront acquisition costs. Debt service coverage is underwritten at 1.89x based on a 5.28% acquisition cap rate and a 5.02% borrowing rate.
Sponsor
Capital Square manages a portfolio of 19 multifamily properties totaling more than 4,200 apartments in the Richmond metropolitan area with $5,000,000 in assets under management. Historical DST experience and corporate staffing data are not disclosed.
• Capital Square oversees 19 multifamily properties with more than 4,200 apartments in total throughout the Richmond metropolitan area.
Properties owned or managed
$5,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
garden-style apartment community
Stated strategy
Capital Square oversees 19 multifamily properties comprising more than 4,200 apartments across the Richmond metropolitan area and reports $5,000,000 in assets under management. The sponsor charges no annual asset management fee ($0) to the trust. Specific narrative details regarding the sponsor's DST-specific track record and internal employee count were not disclosed in the offering materials.
Substantial local footprint with 19 multifamily properties in the Richmond area
Over 4,200 apartments under regional management
Zero dollar ($0) annual asset management fee
DST track record history is not disclosed
Team size and employee headcount are not provided
Reported AUM is limited to $5,000,000 in extracted fields
The property
$74,600,000 acquisition price
CS1031 Colony at Centerpointe Apartments DST
garden-style apartment community
The property was completed in 2016.
14400 Palladium Drive Midlothian, Virginia 23114
14400 Palladium Drive Midlothian, Virginia 23114
$74,600,000
100.0% of portfolio
The offering utilizes virtually no third-party debt, presenting an offering LTV of 0.28%. This unleveraged posture removes traditional lender covenants, interest rate volatility, and refinancing risks.
—
—
5.02%
Fixed
—
1.89x
54.3%
54.3%
The total acquisition cost is $82,270,000 ($82,805,000 inclusive of reserves) across 6 properties in 5 states. The purchase price reflects a 6.0% acquisition capitalization rate based on $4,890,945 of master tenant income.
$74,600,000
$84,724,000
—
—
—
—
5.28%
—
—
1%
—
The $89,517,000 in equity proceeds is allocated to property acquisition ($82,270,000), total offering and front-end expenses ($6,712,000), and master tenant reserves ($275,000).
Total Fees & Expenses
$4,144,675
% of equity
9.65%
% of offering
4.89%
Total fees & expenses
$4.14M
4.89% of offering
Offering expenses
$4.14M
4.89% of offering
Reserves held
$5.85M
6.91% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $298,400 | 0.69% | 0.35% |
| Title & Recording Costs | $436,061 | 1.02% | 0.51% |
| Reserves (Loan Proceeds) | $3,209,362 | 7.47% | 3.79% |
| Reserves (Lender Required) | $238,163 | 0.55% | 0.28% |
| Reserves (Master Tenant) | $108,694 | 0.25% | 0.13% |
| Reserves (Improvements) | $2,294,947 | 5.34% | 2.71% |
| Finance Expenses | $1,031 | 0.00% | 0.00% |
| Total Acquisition Cost | $41,774,000 | 97.26% | 49.31% |
| Total Acq. Cost (Reserves) | $41,774,000 | 97.26% | 49.31% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Dealer Fee | $171,800 | 0.40% | 0.20% |
| Wholesaling Fee | $429,500 | 1.00% | 0.51% |
| BD Due Diligence Allowance | $429,500 | 1.00% | 0.51% |
| BD Marketing Allowance | $429,500 | 1.00% | 0.51% |
| O&O Expenses | $536,875 | 1.25% | 0.63% |
| Third Party DD | $50,000 | 0.12% | 0.06% |
| Total Offering Expenses | $4,144,675 | 9.65% | 4.89% |
| Total Fees / Expenses | $4,144,675 | 9.65% | 4.89% |
Front-end load includes a $1,342,000 dealer fee, $895,000 in organizational and offering expenses, and other closing costs totaling $6,712,000. The sponsor also collects an ongoing annual asset management fee of $447,585.
$298,400
0.69%
$27,500
0.06%
$171,800
0.40%
$429,500
1.00%
$4,144,675
5.56%
Master tenant income is projected at $4,890,945, supporting investor distributions starting at 4.6% in Year 1. Master tenant reserves are funded upfront at $275,000 (0.31% of offering equity).
Asset
Management Fee $0
$4,227,685
A
of fee equal to 1.00% of the principal amount of the new loan
DST
Admin, Accounting & Investor Services $27,500
Standing
34 of 57
Blended percentile across 13 extracted metrics.
Pricing
31st pct
Leverage
31st pct
Cost
87th pct
Ongoing
100th pct
Structure
19th pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Acquisition cap rate
33rd pct5.28%median 5.50%
Year 1 distribution
16th pct4.36%median 4.60%
Acquisition LTV
13th pct54.30%median 46.50%
DSCR
36th pct1.89xmedian 2.00x
Interest rate
69th pct5.02%median 5.13%
Total upfront load
75th pct4.89%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Acquisition cap ratePricing | 5.28% | 5.50% | 5.00% – 6.00% | −0.22% | 33rd |
| Price per unitPricing | $332K | $284K | $180K – $434K | +$48K | 35th |
| Year 1 distributionPricing | 4.36% | 4.60% | 4.40% – 5.00% | −0.24% | 16th |
| Avg. distribution (term)Pricing | 4.95% | 5.08% | 4.75% – 5.32% | −0.13% | 40th |
| Acquisition LTVLeverage | 54.30% | 46.50% | 18.89% – 49.80% | +7.80% | 13th |
| Offering LTVLeverage | 54.30% | 46.09% | 2.67% – 49.53% | +8.21% | 5th |
| DSCRLeverage | 1.89x | 2.00x | 1.73x – 2.12x | −0.11x | 36th |
| Interest rateLeverage | 5.02% | 5.13% | 5.00% – 5.48% | −0.11% | 69th |
| Total upfront loadCost | 4.89% | 7.50% | 5.00% – 9.50% | −2.61% | 75th |
| Acquisition feeCost | 0.69% | 2.65% | 1.89% – 3.77% | −1.96% | 94th |
| ReservesCost | 13.62% | 5.53% | 1.67% – 8.66% | +8.09% | 91st |
| Asset management feeOngoing | 0.00% | 0.35% | 0.20% – 0.47% | −0.35% | 100th |
| Equity share of capitalStructure | 50.69% | 100.00% | 52.93% – 100.00% | −49.31% | 19th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| MCG Gainesville FL BTR DST | Madison Capital Group | — | — | 1.74x | — | 10 yrs | 95% |
| Passco Preston Ridge DST | PASSCO | 5.00% | 46.93% | 2.06x | 4.06% | — | 93% |
| NexPoint Waterford DST | NexPoint Real Estate Advisors IV, L.P. | 5.28% | 48.60% | 2.01x | 4.80% | 10 yrs | 92% |
| BR Parkview Multifamily DST | BVEX | 5.81% | 49.45% | 1.91x | 4.78% | 10 yrs | 90% |
| FREX DB SERIES I DST | Fortress Real Estate Exchange LLC | — | 47.10% | — | 5.55% | 11 yrs | 89% |
| BR Amira DST | Bluerock Value Exchange | 5.64% | 46.17% | 1.80x | 5.06% | 10 yrs | 88% |
| NexPoint Small Bay III DST | NexPoint Real Estate Advisors IV, L.P. | 5.50% | 44.90% | — | 5.15% | — | 88% |
| CS1031 Cacema Townhomes DST | Capital Square Realty Advisors, LLC | 5.32% | 44.39% | 2.10x | 5.37% | 10 yrs | 88% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.