Capital Square, a leading sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities across the nation, today announced the launch of CS1031 Texas Active Living Portfolio I, DST. The Delaware statutory trust offering seeks to raise capital from accredited investors. Investors will receive ownership interests in two boutique build-for-rent active-adult living communities located in McKinney, a suburb of Dallas, and Waco, Texas.
Structured as an all-cash acquisition with no mortgage debt, the portfolio eliminates interest rate and foreclosure risks and is designed to provide accredited investors with stable income and long-term growth potential in the underserved age-restricted rental housing segment.
“The 55-plus demographic continues to expand rapidly, with many active adults seeking high-quality rental options that provide lifestyle flexibility without the burdens of homeownership,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “This all-cash portfolio of stabilized, fully occupied communities reflects Capital Square’s strategic focus on build-for-rent housing and our conviction that differentiated, active-adult communities in growth markets will deliver durable performance over time.”
Located at 2551 Alma Road, in McKinney, Emerald Cottages of Stonebridge includes 44 single-story active-adult cottage homes with attached oversized garages and a community clubhouse. Interior finishes include upgraded flooring, granite countertops, custom cabinetry, stainless steel energy-efficient appliances, large walk-in closets and ample storage. Residents also benefit from proximity to McKinney’s historic downtown district, which features more than 120 shops, restaurants and wineries.
The community is 100% occupied with a waitlist of 18 prospective residents. Over the trailing 12 months, the property achieved 86% resident retention, zero bad debt and no rental concessions, reflecting stable operations and strong demand.
Emerald Cottages of Waco, located at 2412 Marketplace Drive, in Waco, includes 32 active-adult, 100% occupied single-story homes with attached garages. The cottage-style homes feature private entrances, a zero-maintenance lifestyle and luxury interior finishes consistent with the McKinney community. The property has a waitlist of 12 prospective residents and achieved 78% resident retention over the trailing 12 months with zero bad debt and no concessions. Waco is located along the I-35 corridor, approximately halfway between Dallas–Fort Worth and Austin, providing residents access to major metropolitan amenities and healthcare while maintaining a more relaxed lifestyle environment.
“McKinney and Waco represent two of the most compelling markets in Texas for age-restricted housing,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “McKinney has experienced extraordinary long-term population growth and continues to attract corporate relocations and new residents, yet the active-adult segment remains underserved. In Waco, with more than a quarter of the population aged 55 and older, the demand fundamentals for age-restricted living are strong and growing. The strong occupancy, waitlists and resident retention at both communities further reinforce our conviction that well-located, differentiated housing solutions for active adults will deliver lasting value for investors.”
According to McKinney Development Services, McKinney is one of the fastest-growing communities in North Texas, with a city population of approximately 224,000 and a Collin County population of roughly 1.2 million and growing. McKinney Economic Development Corporation reports a long-term population growth in the city of approximately 379% between 1999 and 2019. The city features a highly diversified economy supported by technology, healthcare, professional services, retail and corporate operations, with median household income of approximately $120,000.
Waco is located in McLennan County, which has a population of approximately 268,000, according to Heart of Texas Council of Governments, with the City of Waco comprising roughly 144,000 residents. Waco Economic Development Group reports that population growth in the region averages approximately 1.5% annually, and approximately 26.8% of the population is aged 55 and older, supporting sustained demand for age-restricted housing options. The local economy is anchored by Baylor University, which enrolls approximately 20,000 students, and is further supported by a growing healthcare and tourism sector.
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) for stable income and growth. 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 total development value in 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/Distributors, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities/Distributors, 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/.
