Capital Square Launches All-Cash DST for Texas Active-Adult Rental Portfolio
Event summary
- Capital Square launched CS1031 Texas Active Living Portfolio I, a Delaware statutory trust offering seeking capital from accredited investors.
- The portfolio includes two fully occupied build-for-rent active-adult living communities in McKinney and Waco, Texas.
- The all-cash acquisition eliminates interest rate and foreclosure risks, focusing on stable income and long-term growth.
- Emerald Cottages of Stonebridge in McKinney has 44 units with an 86% resident retention rate and a waitlist of 18 prospective residents.
- Emerald Cottages of Waco has 32 units with a 78% resident retention rate and a waitlist of 12 prospective residents.
The big picture
Capital Square's launch of an all-cash DST for active-adult rental communities in Texas underscores the growing demand for age-restricted housing in high-growth markets. The strategy of eliminating mortgage debt mitigates interest rate risks, appealing to investors seeking stable income. This move aligns with broader industry trends of targeting underserved demographics in real estate, particularly in regions with strong population growth and economic diversification.
What we're watching
- Demand Dynamics
- How sustained demand for age-restricted housing in McKinney and Waco will affect occupancy and rental rates.
- Market Expansion
- Whether Capital Square can replicate this model in other underserved markets with similar demographic trends.
- Investor Appeal
- The pace at which accredited investors adopt this all-cash, no-debt structure for stable income and long-term growth.
Related topics