Strong Communities
While most REITs only focus on Class A or Class B apartment properties, Capital Square Apartment REIT will employ a disciplined capital allocation strategy, with dividends supported by income from both.* We aim to create a combination of stable income,** capital appreciation and a hedge against inflation.***
Class A properties. Highly amenitized apartments in growth markets to produce stable income and growth.
Class B properties. Add value through renovation and modernization to generate substantial growth of embedded value.
Prudent use of debt at historically low interest rates should provide attractive positive leverage and increase cash flow to multiply asset value.
Resilient Markets
Capital Square Apartment REIT’s management team believes that Southeast and Texas markets will command an increasing share of the nation’s economic growth and prosperity. The REIT will acquire properties in markets supported by industries characterized by exceptional employment and wage growth, including healthcare, technology and high-value manufacturing.
The REIT will target supply-constrained regions with considerable barriers to new supply, where insufficient new housing is being constructed.
*Until proceeds from this offering are invested and generating operating cash flow sufficient to make distributions to stockholders, we may make some or all of our distributions, if any, from the proceeds of this offering, cash advanced to us by our Advisor, or cash resulting from borrowings (including borrowings secured by our assets) in anticipation of future cash flow. There is no limit on the amount we can fund distributions from sources other than from cash flows from operations.
**Distributions are at the sole discretion of the board of directors and are not guaranteed.
***Middleburg Communities. “Apartment Rental Rates: Effective Inflation Hedge?” October 22, 2020.