Capital Square 1031 is launching an investment program to acquire 55+ lifestyle manufactured housing communities in coastal Florida markets.

The firm specializes in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion.

Capital Square founder and CEO Louis Rogers said Florida appealed because of its climate, its lack of a state income tax and its infrastructure, which caters to retirees.

"Capital Square has completed an exhaustive search of asset classes to expand the current line-up of multifamily, medical and industrial properties for the 1031/DST program," Rogers said.

The 55+ lifestyle homes are typically double-wide in size, Rogers said, and they often include amenities such as built-in carports, porches, shingled roofs and granite countertops.

"Highly prized for their stable occupancy, low operating and capital expenses, and track record of strong performance, four- and five-star manufactured housing communities are considered some of the most desirable properties in the nation," Rogers said.

Institutional-quality four- and five-star manufactured housing communities are in short supply, Rogers said, because there are barriers to developing new communities and some older communities have been converted to other uses.

By acquiring the communities, Capital Square can potentially generate stable income and capital appreciation for investors, Rogers said. The firm is bullish on communities in which upgrades and improvements will maximize income potential and where all the homes are tenant-owned.

Chief strategy and investment officer Whitson Huffman said many of the communities will be the only ones in their submarkets with docks and boat access.

"Capital Square believes that investments in 55+, highly amenitized, four- and five-star manufactured housing communities in coastal Florida have substantial upside potential from organic rent growth plus additional rent increases from planned upgrades and improvements to the communities," Huffman said.