Capital Square Fully Subscribes $32.7M All-Cash DST Comprising Two Texas Active-Adult Communities

Capital Square has fully subscribed CS1031 Texas Active Living Portfolio II, DST, a $32.7 million all-cash Delaware statutory trust backed by two cottage-style active-adult communities in Kerrville and Round Rock, Texas, the Richmond, Va.-based sponsor said Nov. 11.

The Regulation D private placement, which Capital Square rolled out in June, holds 64 single-story homes restricted to residents 55 and older. The portfolio carries no mortgage debt, a structure Capital Square said eliminates interest rate and foreclosure risk for investors. The company did not disclose the number of investors in the offering.

“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.”

Emerald Cottages of Kerrville, at 1501 Bandera Highway in the Texas Hill Country, comprises 32 homes with step-free entries, wide doorways, and walk-in showers. The community sits across the street from the Riverhill Country Club and Golf Course and is within a five-minute drive of the Kerrville VA Medical Center.

Emerald Cottages of Round Rock, at 4099 Teravista Club Drive, comprises 32 homes of the same single-level design within the Teravista master-planned community, which includes an 18-hole golf course and more than 10 miles of hiking and biking trails. Round Rock is in Williamson County, less than 25 miles north of downtown Austin.

As of Nov. 2, Capital Square reports that both communities were 100% occupied, with trailing 12-month resident retention of 86%. At launch in June, the company reported trailing 12-month retention of 91% at Kerrville and 81% at Round Rock, with both properties fully occupied and carrying waitlists.

The offering is the latest in a string of active-adult DSTs from Capital Square. In October, it launched the $37.35 million all-cash CS1031 Texas Active Living New Braunfels, DST, backed by a 72-home age-restricted cottage community in New Braunfels, Texas. In July, the sponsor fully subscribed the $33.3 million CS1031 Richmond Active Living Apartments, DST, which raised equity from 108 investors for a 165-unit age-restricted community in suburban Richmond. In March, it launched the $39.3 million all-cash CS1031 Texas Active Living Portfolio I, DST, backed by communities in McKinney and Waco, Texas, which it fully subscribed in October. In December 2025, Capital Square fully subscribed the $34 million CS1031 Texas Active Adult Living I, DST, backed by a 62-unit community in Fredericksburg, Texas.

The close comes as DST fundraising runs well ahead of last year’s pace. Sponsors raised about $8.39 billion in DST equity through October, up 26% from $6.65 billion in the same period of 2025, according to Mountain Dell Consulting data.

Founded in 2012, Capital Square said it has acquired more than 180 real estate assets on behalf of more than 6,500 investors and completed more than $9.35 billion in transaction volume. Its property management division, Capital Square Living, oversees nearly 14,000 apartments across eight states, according to the company.

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