The real estate firm that bought a build-for-rent (BFR) community in Castle Hayne in July is calling the investment a success.

Capital Square, a company that sponsors tax-advantaged real estate investments and develops and manages multifamily communities, announced Thursday that its offering, CS1031 Sidbury Station BFR Housing DST, has been fully subscribed. According to a Capital Square news release, the Regulation D private placement, comprised of the 113-home Seaboard at Sidbury Station at 6105 Dichondra Road in Castle Hayne, raised nearly $23 million in equity from investors. 

A 1031 DST (Delaware Statutory Trust) is a co-ownership system with the 1031 tax code advantage of allowing investors to defer capital gains on property sales and benefit from their new investment gains without being responsible for managing the properties, according to 1031 investment platforms.

"Sidbury Station is another successful DST/Section 1031 offering of a BFR community in the Sunbelt," said Louis Rogers, founder and co-CEO of Capital Square, in the release. "Capital Square invests in housing because housing is a necessity that has proven to be resilient over time. The BFR strategy is another arrow in our quiver, along with newly constructed Class A apartments, older Class B apartments with value-add from renovations and age-restricted manufactured housing communities in Florida."

Construction of Seaboard at Sidbury Station, which Capital Square bought in a nearly $40 million deal last year, was completed in 2023. Developed by D.R. Horton, the nation's largest homebuilder by volume, the community has a mix of three-, four- and five-bedroom detached single-family homes, averaging 1,829 square feet, the release stated.

"Sidbury Station is a property in high demand with tenants seeking the benefits of single-family home rentals with large amenity packages, as it took less than one year for the community to reach 95% occupancy after its completion," said Whitson Huffman, co-CEO of Capital Square, in the release. "Capital Square is pleased to provide its investors with the opportunity to participate in the ownership of properties like this, which are discovered by our private equity acquisitions group as it employs a dedicated strategy to invest in build-for-rent communities in high-growth Sunbelt markets."

The rents at Seaboard at Sidbury Station as of Friday ranged from $2,385 to $3,129 a month, according to Apartments.com

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, along with opportunity zone funds and a real estate investment trust (REIT) that acquires rental housing in the Southeast and Texas," the release stated.