Capital Square, one of the nation’s leading sponsors of tax-advantaged real estate investments and an active developer of multifamily communities, announced the acquisition of Parkland Apartments, a 396-unit Class A multifamily community in the affluent Miami suburb of Parkland, Florida. The community was acquired on behalf of CS1031 Parkland Apartments, DST, which seeks to raise $105.7 million in equity from accredited investors and has a minimum investment requirement of $50,000.
“Parkland Apartments is all about the location near many of South Florida’s major employment hubs, nationally recognized schools, and retail opportunities,” said Louis Rogers, founder and co-CEO of Capital Square in a statement. “Parkland Apartments is a very special property for Capital Square’s 1031 exchange and cash investors.”
Located at 5851 Holmberg Road, the 95.5% occupied property features one-, two- and three-bedroom apartment units that average 1,118 square feet and offer stainless steel appliances, quartz countertops, wood-inspired flooring, a private patio or balcony, and in-unit washer and dryers. Community amenities include two resort-style pools, a clubhouse, 24-hour fitness center, hammock garden, two outdoor kitchens, picturesque walking trails and a 4.75-acre lake. Parkland Apartments has direct access to Covered Bridge Park, a 2.9-acre park owned and managed by the City of Parkland that includes wooded nature trails, a meditation area, yoga lawn and butterfly garden.
Since 2018, the property has received $9.4 million in capital improvements, including $6.8 million in interior renovations.
Parkland Apartments is one of only two apartment communities in the Parkland school district. Beyond Parkland’s A-rated elementary, middle and high schools, multiple nearby colleges and universities are also in close proximity to the property, including Broward College, Lynn University, Florida Atlantic University and the South Florida Education Center.
“With nationally recognized, A-rated schools and proximity to some of South Florida’s strongest employment, entertainment and natural points of interest, Parkland offers a high quality of life and many resident experiences,” said Whitson Huffman, co-chief executive officer. “Amid Florida’s continuing migration boom, Parkland experienced a 44.7% population increase from 2010 to 2020 with continuous growth projected in the years to come and the region continues to attract some of the nation’s leading companies, which demonstrates a positive long-term outlook for the area.”
Parkland is a highly affluent community with one of the strongest home markets in the state of Florida, with an average home price of $970,000 and household income that surpasses $100,000 annually.2 The Parkland submarket averaged effective multifamily rental increases in excess of 20% between June 2021 and June 2022. Rent growth is projected to increase 6.4% in 2023 and to remain above 5% through 2027.3
Several of South Florida’s major employers are in close proximity to the property, including Microsoft, Zimmerman Advertising, American Express and Broward Health. In addition to South Florida’s already strong employment landscape, additional significant companies continue to relocate or move a portion of their operations to the area, including Goldman Sachs Asset Management, which has reported revenues near $8 billion annually; Blackstone, the private equity giant with nearly $1 trillion in assets under management; and Nucleus Research, a global provider of ROI-focused technology research and advisory services. This corporate migration and relocation trend demonstrates a positive long-term outlook for the region.