CS1031 Colony at Centerpointe Apartments, DST Overview
CS1031 Colony at Centerpointe Apartments, DST is a Regulation D 506(c) offering from Richmond-based Capital Square seeking $42.95 million of equity from accredited investors, with a $50,000 minimum investment. The trust owns Colony at Centerpointe, a 255-unit Class A garden-style apartment community at 14400 Palladium Drive in Midlothian, Virginia, in the heart of Chesterfield County within the Richmond MSA. Built in 2016, the community spans 18 acres and offers one-, two- and three-bedroom homes averaging a spacious 1,149 square feet, with in-place rents ranging from roughly $1,550 to $2,270 per month and occupancy running in the 94-95% range at acquisition. Capital Square closed on the property on June 29, 2026 for $74.6 million (about $293,000 per unit), buying from Preferred Apartment Communities, which had acquired the asset in 2017 for $46 million. The deal is leveraged at a moderate 49.31% in-place loan-to-value with 5.02% fixed-rate financing. Notably, the sponsor is buying in its own backyard: Capital Square is headquartered in the Richmond area, manages more than 4,200 apartment units in the region, and already owns the adjacent 192-unit Sapphire at Centerpointe community.
Highlights
Recently built Class A asset acquired at a documented basis. Colony at Centerpointe was completed in 2016 by Robinson Development Group and still presents as a modern Class A garden community. Capital Square paid $74.6 million ($293,000 per unit) at closing on June 29, 2026 — a price that is public record, alongside the seller's 2017 purchase at $46 million, giving investors an unusually transparent view of the asset's value history before committing exchange equity.
Chesterfield County growth corridor with affluent demographics. The community sits in Midlothian's Centerpointe area, one of the Richmond MSA's strongest suburban submarkets. Average household income is roughly $137,000 within two miles and $142,000 within five, the two-mile population grew 8.3% from 2020 to 2025, and Chesterfield County added more than 36,700 residents over the same stretch — a deep, well-paid renter pool for a Class A property positioned at the top of the local rental market.
Moderate fixed-rate leverage suited to 1031 debt replacement. The trust carries in-place financing at a 49.31% loan-to-value with a 5.02% fixed interest rate, giving exchange investors meaningful debt replacement for their relinquished-property basis without pushing leverage to aggressive levels. Roughly half-levered capitalization leaves cushion against value swings, and the fixed coupon removes floating-rate risk from the hold-period cash flow math — a structure many recent DSTs lack.
Hometown sponsor with dense Richmond operating scale. Capital Square is headquartered in Glen Allen, minutes from the property, and manages more than 4,200 apartment units across the Richmond region. It literally owns the community next door — the 192-unit Sapphire at Centerpointe, acquired in 2021 for over $48 million — giving it block-by-block knowledge of Centerpointe rents, concessions and operating costs that few sponsors can claim on any single acquisition anywhere in the country.
Full amenity package supporting top-of-market rents. Residents get a saltwater pool with sundeck, a clubhouse with catering kitchen, fitness center and separate yoga studio, bocce court, dog park, business center, outdoor grilling areas with a firepit, bike storage and package lockers. Units average 1,149 square feet — large by modern standards — and the community was roughly 94-95% occupied at acquisition with monthly rents spanning about $1,550 to $2,270 across one-, two- and three-bedroom floor plans.
Analysis of CS1031 Colony at Centerpointe Apartments, DST
Insights
This deal is best understood as a hometown sponsor doubling down on a submarket it already dominates — Capital Square bought the community next door to its own Sapphire at Centerpointe, in the metro where it is headquartered and runs 4,200+ units. That is the most credible form of local-knowledge underwriting a DST investor can find, and it materially de-risks the operating assumptions. The relative-value read is more mixed. At $293,000 per unit for a 2016 Class A build with 1,149 sf average units, the basis is defensible against replacement cost, but the county assesses the property at $63 million versus the $74.6 million paid, and the seller booked a 62% gain since 2017 — Capital Square is paying today's full institutional price, and the trust's total capitalization will be higher still after load. The structural positives are real: 49.31% LTV is on the conservative side of the leveraged-DST spectrum, and a 5.02% fixed coupon is solid financing for 2026. The crux risk is the exit, not the hold — a stabilized Chesterfield asset should cash-flow predictably, but returns will be decided by the cap rate available when the trust must sell, because DSTs cannot refinance or extend. The non-obvious point: sponsor adjacency is a two-sided coin. Owning Sapphire next door gives Capital Square pricing intelligence, but it also means the sponsor controls a directly competing property and sets rents on both — a conflict the PPM will disclose but few investors price. Note also that projected yield, hold period and total load were not yet public at listing; we are holding this at Under Review until the PPM economics are confirmed. Best fit: exchange investors needing moderate debt replacement who prize sponsor-market alignment and stabilized Class A multifamily. Pass if you need published Y1 cash flow to compare against alternatives today, or if you are already overweight Richmond or Capital Square paper.
Advantages
The bull case rests on verifiable facts rather than sponsor projections. The $74.6 million purchase price is public record, and the 2016-vintage asset was about 94-95% leased at closing — this is stabilized, income-producing real estate, not a lease-up story. Leverage is genuinely conservative: 49.31% in-place LTV at a 5.02% fixed rate provides 1031 debt replacement while leaving real equity cushion, and the fixed coupon insulates distributions from rate volatility during the hold. The sponsor advantage is unusually concrete — Capital Square is a Richmond-headquartered firm managing 4,200+ regional apartment units and owns the adjacent Sapphire at Centerpointe, so it underwrote this deal with direct, current operating data from next door. Demographics support the rent roll: $137,000+ average household incomes within two miles and 8.3% five-year population growth. Finally, the offering launched August 3, 2026, so the full $42.95 million of equity is available — early investors are not picking over remnants of a mostly subscribed deal.
Concerns
Weigh the deal-specific risks. First, the paper trail shows Capital Square paid $74.6 million for an asset Chesterfield County assesses at $63 million and that traded at $46 million in 2017 — investors are buying in at a full price after a 62% appreciation run, and the DST offering price will sit above the purchase price once load is added. Second, per the Form D, estimated selling commissions alone are about $3.6 million (roughly 8.4% of the $42.95 million equity raise), and the total load including sponsor acquisition fees and reserves has not yet been published — get the PPM's use-of-proceeds table before wiring funds. Third, projected cash flow, hold period, and full loan terms (maturity, interest-only period, prepayment) are not yet public; a 5.02% fixed loan is attractive today, but DSTs cannot refinance, so the exit depends on sale proceeds clearing the debt at maturity in whatever rate environment then prevails. Fourth, expect standard Capital Square master-lease mechanics, where an affiliate leases the property from the trust — investor cash flow depends on that lease's terms, not raw property NOI. Finally, the sponsor's heavy Richmond concentration cuts both ways: its adjacent Sapphire property competes for the same renters.
CS1031 Colony at Centerpointe Apartments, DST — Complete Offering Data
Offering & Structure
Investment NameCS1031 Colony at Centerpointe Apartments, DST
SponsorCapital Square
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusUnder Review
Last Updated2026-08-11
Size & Availability
Total Offering$84,730,000
Equity$42,950,000
Debt$41,780,000
Available Equity$10,226,726 (23.8% of equity)
Minimum Investment$50,000
Total Load9.27%
Initial Reserves7.47%
Property
Property TypeMultifamily
StrategyCore
LocationVA
Market TierTier 2
Income & Projections
Average Yield4.36%
Projected Yields (Y1–Y10)Y1 4.36%
Tax-Adjusted Yield11.20%
Cap Rate Equivalent8.38%
Financing
In-Place LTV49.31% LTV
LenderNot disclosed
Loan TypeFixed
Interest Rate5.02% (Fixed)
I/O Period7 years (84 mo., per grid)
Y1 DSCR1.88x
Exit
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income4.36% vs 4.85% market — Below Average
Growth0.00% vs 24.76% market
Peak4.36% vs 5.55% market — Below Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
