Capital Square Fully Subscribes $32.7 Million All-Cash Active-Adult DST in Texas

RICHMOND, Va.--(BUSINESS WIRE)--Capital Square, a leading sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities nationwide, today announced that its Regulation D private placement offering, CS1031 Texas Active Living Portfolio II, DST, has been fully subscribed. The $32.7 million Delaware statutory trust comprises two cottage-style, active-adult communities for residents 55 and older, located in Kerrville, in the Texas Hill Country, and Round Rock, a suburb of Austin. Structured as an all-cash acquisition with no mortgage debt, the portfolio eliminates interest rate and foreclosure risk for investors.

“CS1031 Texas Active Living Portfolio II, DST, was fully funded quickly by investors,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This reflects the strong demand from DST/1031 investors seeking all cash, no debt offerings and the active adult housing investment strategy, and will be followed by a series of similar all cash, active adult offerings. Capital Square is thrilled to launch this new housing strategy for Section 1031/DST investors.”

Located at 1501 Bandera Highway in Kerrville, the Emerald Cottages of Kerrville includes 32 single-story homes purpose-built with ADA-accessible features, including step-free entries, wide doorways and walk-in showers. Interior finishes include upgraded flooring, granite countertops, custom cabinets with tile backsplashes, stainless steel appliances, large walk-in closets and additional storage throughout. The community also offers a paved walking path in a natural setting and is located across the street from the Riverhill Country Club and Golf Course. The Kerrville VA Medical Center, a major provider of primary and specialty healthcare services in the area, is within a five-minute drive of the property.

Emerald Cottages of Round Rock, located at 4099 Teravista Club Drive in Round Rock, is comprised of 32 single-story homes built to the same accessible, single-level design, with private entrances and interior finishes comparable to the Kerrville community. The property is within the Teravista master-planned community, which includes an 18-hole golf course, fitness centers, tennis and pickleball courts, and more than 10 miles of hiking and biking trails. As of November 2, both communities were 100% occupied, with trailing 12-month resident retention of 86%.

“We continue to see compelling opportunities in active-adult housing communities, particularly those supported by strong demographic demand and market fundamentals,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “The full subscription of this offering marks another meaningful milestone for Capital Square as we expand the range of housing investments available through our 1031 exchange platform. The Kerrville and Round Rock communities reflect the characteristics we seek in DST investments, including established operations, strong resident retention and locations supported by long-term demand drivers.”

Kerrville is located in Kerr County and is known as a retirement and recreational destination. The city has a diversified economy supported by healthcare, education, retail, agriculture and tourism. Healthcare is a significant economic driver, anchored by Peterson Regional Medical Center, Kerrville State Hospital and the Kerrville VA Medical Center, while tourism and hospitality are supported by outdoor recreation, wineries and annual cultural events.

Round Rock is located in Williamson County within the Austin metro area, less than 25 miles north of downtown Austin and 15 miles from The Domain, an upscale open-air retail and dining destination. According to the City of Round Rock, the city offers a cost-of-living advantage relative to the broader Austin metro, supported by one of the region’s lowest property tax rates. Round Rock has an expanding economy supported by major employers, including Dell Technologies, Amazon and St. David’s Medical Center.

Since its founding in 2012, Capital Square has acquired more than 180 real estate assets on behalf of over 6,500 investors seeking quality replacement properties eligible 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, development funds 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 $9.35 billion in transaction volume. Its mixed-use development projects total over 2,700 housing units with an aggregate development value in excess of $1 billion, and Capital Square Living, the firm’s property management division, oversees nearly 14,000 apartments across eight 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/.