Capital Square Launches $41.85 Million DST for Newly Constructed Townhome Community Near Orlando

ORLANDO, Fla.--(BUSINESS WIRE)--Capital Square, a leading sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, today announced the launch of CS1031 Cacema Townhomes, DST, a Delaware statutory trust offering ownership interests in a newly constructed, 176-unit townhome community in the Orlando suburb of Kissimmee, Florida. The offering seeks to raise $41.85 million in equity from accredited investors.

“Interest rates have been exceptionally volatile lately,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Therefore, Capital Square locked the interest rate at 5.04 % on Cacema Townhomes. With favorable debt in place, the DST offering is an excellent choice for exchangers who need debt on their replacement property to satisfy the Section 1031 debt requirement.”

Cacema Townhomes features three- and four-bedroom floor plans with attached garages, private entries and semi-private backyards. Interior finishes include granite countertops, stainless steel appliances, wood plank-style flooring and full-size in-unit washers and dryers. Community amenities include a resort-style heated pool, 24-hour fitness center, clubhouse, lakeside firepit lounge with outdoor summer kitchen, walking trail, two fenced bark parks and EV charging stations.

The property is within walking distance of The Loop Kissimmee, a 500,000-square-foot open-air retail center, and 1.5 miles from Crosslands Shopping Center. Major employment centers including Walt Disney World, Orlando International Airport, Universal Epic Universe, Lockheed Martin and AdventHealth Kissimmee are nearby. NeoCity, a 500-acre STEM-focused technology district, is about 15 minutes away and continues to drive high-wage job growth across the submarket.

Population growth within a one-mile radius of Cacema Townhomes reached 26% from 2020 to 2025 and is projected to grow an additional 18% through 2030, according to KPM Franklin. Kissimmee is located in Osceola County, the fastest-growing county in the Orlando metropolitan area and the 10th fastest-growing county in the nation. Osceola County’s population increased 70% from 2010 to 2024 and is projected to more than double by 2040, according to Orlando Economic Partnership.

"Osceola County's recent decision to raise impact fees on new townhome construction by more than 81% will constrain future supply in the submarket," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "Established communities like Cacema Townhomes stand to benefit from reduced competition at a time when demand for larger floor plans remains strong. Tightening supply across the region should support rent growth and occupancy stability."

Multifamily competition in Kissimmee remains limited. Only one other townhome community, consisting of 187-units, located approximately 25 minutes south, currently operates in the submarket, and only one competing property offers four-bedroom units. Supply of larger units is constrained, with just 100 vacant three- and four-bedroom units across the submarket and 57 additional units under construction expected to deliver in 2027.

Since its founding in 2012, Capital Square has acquired more than 175 real estate assets on behalf of over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with others seeking stable cash flow and capital appreciation.

About Capital Square

Capital Square is a vertically integrated, national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $8.9 billion in transaction volume. Its mixed-use development projects total over 2,000 apartment units with a development value in total excess of $800 million, and Capital Square Living, the firm’s property management division, oversees more than 13,000 apartments across multiple states. Capital Square’s related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. The company has been recognized by Inc. 5000 as one of the fastest-growing private companies in the nation for nine consecutive years. Learn more at CapitalSq.com.

Disclosure

Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.