Capital Square Taps Senior Living Boom in Thriving Richmond Market

RICHMOND, VA – December 29, 2025 – Capital Square, a prominent national real estate investment and development firm, has announced the launch of a new investment offering targeting one of the most powerful demographic trends in the nation: active adult living. The firm has rolled out CS1031 Richmond Active Adult Living Apartments, DST, a $33.3 million Delaware statutory trust that provides accredited investors with fractional ownership in a Class A, 165-unit age-restricted apartment community in Richmond’s affluent Short Pump submarket.

The offering centers on Everleigh Short Pump, a nearly fully occupied (95.7%) community that exemplifies the convergence of real estate investment with significant demographic and economic tailwinds. This move signals a strategic bet on the sustained demand for high-quality, lifestyle-oriented housing for the nation's growing senior population, anchored in a city experiencing a notable economic renaissance.

Riding the 'Silver Tsunami'

The investment thesis behind the new offering is deeply rooted in national demographic shifts. The U.S. Census Bureau projects that by 2030, the entire Baby Boomer generation will be over the age of 65, expanding the 55-and-older population to nearly 80 million people. This so-called 'silver tsunami' is not just a demographic footnote; it represents a fundamental reshaping of housing demand.

"Active adult communities such as Everleigh Short Pump reflect the convergence of powerful demographic trends, lifestyle-driven housing demand, and durable long-term fundamentals," said Louis Rogers, founder and co-chief executive officer of Capital Square. "As 1031 exchange investors increasingly seek high-quality replacement properties that offer both income potential and long-term growth, Capital Square believes well-located, age-restricted multifamily assets will continue to play an important role in a diversified real estate portfolio."

Unlike traditional senior housing, active adult communities cater to a younger, more independent senior cohort that is seeking a low-maintenance lifestyle without sacrificing amenities or social engagement. Recent surveys indicate a sharp increase in interest for such communities, with over half of respondents in the 55+ age bracket expressing a desire to live in one. The appeal lies in the blend of private living with robust communal features. Everleigh Short Pump, for instance, offers one-, two-, and three-bedroom units with premium finishes, complemented by a heated swimming pool, yoga studio, theater room, and a full-time activities director who curates social events and fitness programs.

Richmond's Economic Resurgence Creates Fertile Ground

While the demographic push is a national phenomenon, the choice of Richmond as the investment locus is a calculated move based on powerful local economic indicators. The Richmond metropolitan area has emerged as a standout market in the Southeast, characterized by low unemployment and significant population growth. As of August 2025, both Virginia and the Richmond metro area reported an unemployment rate of 3.7%, well below the national average of 4.3% for the same period.

This economic stability is being supercharged by massive corporate investments that promise to bring thousands of high-quality jobs to the region. Global pharmaceutical giant Eli Lilly is investing $5 billion to construct a sprawling manufacturing campus that will create 650 permanent jobs and 1,800 construction jobs. In parallel, The LEGO Group is building a $360 million regional distribution center and a separate manufacturing facility, which together are expected to generate over 2,000 jobs. These developments are magnets for talent and economic activity, further bolstering the housing market.

"Richmond continues to stand out as one of the most stable and compelling demographic markets in the Southeast," noted Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "Both statewide and regional unemployment remain below national levels, and the city has experienced meaningful population growth over the past decade. These strong economic fundamentals and steady in-migration support long-term housing demand and reinforce our confidence in the market's continued performance."

For an age-restricted community, the local demographics are particularly compelling. Within a five-mile radius of the Everleigh Short Pump property, over 30% of residents are age 55 or older, with another 12% in the 45-to-54 age bracket, ensuring a deep and growing pool of potential residents.

The Mechanics of a Modern Real Estate Investment

The CS1031 Richmond Active Adult Living Apartments offering is structured as a Delaware Statutory Trust (DST), a popular vehicle for investors utilizing a Section 1031 exchange. This provision of the Internal Revenue Code allows investors to defer capital gains taxes on the sale of an investment property by reinvesting the proceeds into a "like-kind" replacement property. DSTs provide a streamlined solution, allowing investors to acquire fractional ownership in a large, institutional-grade asset that might otherwise be out of reach.

This structure offers passive ownership, with Capital Square and its property management division, Capital Square Living, handling all aspects of due diligence, acquisition, and management. For investors facing the strict 45-day identification and 180-day closing deadlines of a 1031 exchange, a DST can be an efficient and attractive option.

Capital Square has a significant track record in this specialized field. Since 2018, the firm has taken 31 DST offerings full-cycle, delivering an average total return of 168.45% to investors. For example, the sale of Bellemeade Farms Apartments in Leesburg, Virginia, generated a 136.42% total return for its DST investors. This history of performance adds a layer of credibility to the firm's new offering.

A Premium Submarket with Proven Demand

The specific location in Short Pump further strengthens the investment's appeal. This suburb is one of Richmond's most desirable residential and retail hubs, giving residents access to 5.5 million square feet of shops, restaurants, and entertainment. The premium nature of the location is reflected in its rental rates. As of August 2025, the average rent for an apartment in Short Pump was approximately $1,870, significantly higher than the city-wide average of around $1,400 in Richmond.

The Everleigh property itself commands strong demand, with its 95.7% occupancy rate serving as clear evidence of its market position. The community is situated directly across from a Kroger-anchored shopping center and provides direct access to Broad Street, the area's main thoroughfare, blending convenience with the curated lifestyle offered within the property's gates. This combination of a high-quality asset in a robust submarket, underwritten by powerful economic and demographic forces, encapsulates the strategy behind Capital Square’s latest offering.