Capital Square Acquires Texas Active Adult Community for $34M DST Offering

Capital Square, a sponsor of tax-advantaged real estate investments and a developer and manager of housing communities, has announced the acquisition of Woodland Cottages, a build-for-rent community in Fredericksburg, Texas. The 62-unit, active adult community was acquired on behalf of CS1031 Texas Active Adult Living I, DST, which seeks to raise $34 million from accredited investors.

The purchase price and other terms were not disclosed.

“Capital Square is bullish on various segments of housing for the Section 1031/DST platform,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “First it was multifamily communities, Class A and B, then age-restricted manufactured housing communities in Florida, next conventional build-for-rent communities in the Southeast and now an active adult build-for-rent community in Texas. Our goal is to provide housing investments that generate both stable returns and strong capital appreciation.”

Located in historic Fredericksburg, Woodland Cottages features ADA-compliant rental homes tailored for active adults. The community has 20 one-bedroom residences, averaging 899 square feet; and 42 two-bedroom houses, averaging 1,355 square feet. Each includes spacious, open-concept layouts with zero-threshold showers and other aging-in-place features. Community amenities include a 6,000-square-foot clubhouse, as well as a swimming pool, fitness center and dedicated resident concierge.

Capital Square noted Fredericksburg as one of the fastest-growing regions in the nation. Within a 50-mile radius, the area has had 18.8% population growth over the past five years, driven by its strong appeal among retirees and lifestyle-oriented residents. The region was recognized as a “Top Retirement Dream Area” in 2025 by Scout Report. Additionally, rents in Fredericksburg have increased by 12.2% annually, among the highest growth rates in the nation.

“The launch of this offering highlights the increasing demand for purpose-built, active adult rental communities in lifestyle-driven markets like Fredericksburg,” said Whitson Huffman, co-CEO and chief investment officer of Capital Square. “Fredericksburg offers exceptional regional demographics, rising rent trends and expansive regional growth, and we believe that this property is uniquely positioned to provide high-quality housing and the potential for long-term value to our investors.”

Home to over 80 wineries and situated 80 miles west of Austin and 70 miles north of San Antonio, Fredericksburg is also renowned for its Main Street historic district. Approximately 33.9% of the city’s population is 65 or older. More than 1 million people visit Fredericksburg annually, generating $175 million in tourism revenue and supporting around 1,200 local jobs, according to the 2025 Fredericksburg, TX Convention & Visitors Bureau Economic Impact Report.

Last month, Capital Square Glendale BFR, LLC, became fully capitalized after raising more than $43 million in equity from investors. The Regulation D private placement, consists of a 320-unit build-for-rent community in Glendale, Ariz.

Since its founding in 2012, Capital Square has acquired more than 170 real estate assets for over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with opportunity zone funds and a real estate investment trust that acquires rental housing in the Southeast and Texas. In total, Capital Square has completed more than $7.9 billion in transaction volume and its mixed-used development projects total over 2,000 apartment units with a total development value in excess of $800 million.

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