Turning Rock exits Capital Square 1031

Turning Rock Partners said April 22 that it sold its stake in Capital Square 1031. Financial terms weren’t announced. Management of the company acquired Turning Rock’s preferred equity stake. Capital Square is a real estate investment sponsor and asset management firm that provides recurring services to its clients.


New York, NY April 22, 2019

PR Newswire — Turning Rock Partners (“TRP” or “Turning Rock”), a private investment firm based in New York, on Monday, April 22, 2019, announced the full redemption of its initial preferred equity investment in Capital Square 1031, a high-growth, privately-held real estate investment sponsor and asset management firm that provides recurring services to its clients. The deal represents one of the firm’s successful liquidity events.

“Our partnership with Capital Square has been exceptional,” said Turning Rock Managing Partner Maggie Arvedlund. “The platform is managed by a seasoned team of professionals and continues to grow. Our initial capital investment enabled the company to further address its deal pipeline, to selectively add to its strong bench of professionals and to improve its long-term outlook.”

“CEO and founder Louis Rogers and his team at Capital Square 1031 added several institutional elements to the business and we will continue to be partners of the firm going forward,” Arvedlund said.

Rogers added that “Capital Square needed funding to grow our DST/1031 exchange business. The team at Turning Rock took the time to understand Capital Square’s business and has provided two rounds of much-needed funding. Turning Rock has become a valuable business partner, funding growth to over $1.1 billion of real estate assets. Capital Square could not have done it without Turning Rock.”

Turning Rock was advised by Matthew Harris and Anisa Abdullahi of Arnall Golden Gregory, as well as Bill Murphy, an independent private equity consultant.

Capital Square 1031 is a national real estate investment and management company that sponsors real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The firm uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors. Capital Square provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors.

Turning Rock Partners (“TRP” or the “Firm”) targets debt, equity and hybrid investments in underserved or capital constrained lower-middle market businesses in North America. TRP structures bespoke financing solutions for companies across the private market landscape.