A Virginia-based real estate firm recently announced the acquisition of Seaboard at Sidbury Station in Castle Hayne.

Capital Square, a company that sponsors tax-advantaged real estate investments and develops and manages multifamily communities, acquired the rental housing community in a $39.3 million deal on behalf of CS1031 Sidbury Station BFR Housing DST, according to a news release and tax records. CS1031 Sidbury Station BFR Housing DST seeks to raise equity from accredited investors, the release stated.

The seller of the build-for-rent (BFR) community was homebuilder DR Horton Inc., tax records show.

The release stated that Seaboard at Sidbury Station, located at 6105 Dichondra Drive, was completed in 2023 and includes 113 detached single-family homes with three to five bedrooms.

"This represents Capital Square's fifth BFR offering for its Section 1031/Delaware statutory trust program and the eighth BFR project for its private equity group," the release stated. "Led by co-chief investment officers Dave Platter and Jon Trott, Capital Square's private equity group was formed to profit from opportunities in the housing market, including a dedicated build-for-rent strategy in high-growth Sunbelt markets."

Louis Rogers, founder and co-CEO of Capital Square, stated in the release, "Capital Square's investors are attracted to newly constructed BFR communities such as Sidbury Station because demand is strong from residents who want a single-family home but can't afford to own. Capital Square's BFR communities help to satisfy the demand for a single-family home with amenities at an affordable price."

Community amenities include a swimming pool, fitness center, clubhouse, sports court, playground and professional landscaping.

Whitson Huffman, co-CEO of Capital Square, stated in the release, "Limited supply in the area has provided Capital Square with the strategic advantage to drive occupancy and rental growth."

Huffman said Seaboard at Sidbury Station had reached 95% occupancy as of June.

According to the release, "Since its founding in 2012, Capital Square has acquired more than 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation."