Capital Square Fully Subscribes $39.3M All-Cash Texas Active-Adult DST

Capital Square has fully subscribed CS1031 Texas Active Living Portfolio I, DST, a $39.3 million all-cash Regulation D private placement holding two active-adult cottage communities in McKinney and Waco, Texas.

The Delaware statutory trust sought to raise $39.3 million, according to U.S. Securities and Exchange Commission filings. Capital Square did not disclose the final equity raised or the number of investors. The sponsor said it acquired the properties in March. AltsWire reported the offering’s launch in March, when both communities were 100% occupied with waitlists.

The portfolio is structured as an all-cash acquisition with no mortgage debt. Capital Square said that structure eliminates interest rate and foreclosure risk for investors.

“All cash DST offerings have become very popular lately with the run up in interest rates impacting cash flow on leveraged programs,” said Capital Square founder and co-chief executive officer Louis Rogers.

The close extends a string of active-adult DSTs from the Richmond, Va.-based sponsor. Capital Square fully subscribed CS1031 Texas Active Adult Living I, DST, a $34 million offering, in December 2025. It launched CS1031 Texas Active Living Portfolio II, DST, in June, and in July fully subscribed a $33.3 million active-adult DST in suburban Richmond. Most recently, as reported by AltsWire, the sponsor launched CS1031 Texas Active Living New Braunfels, DST, which Capital Square described as its fourth Texas Active Living offering.

Emerald Cottages of Stonebridge, at 2551 Alma Road in McKinney, has 44 single-story cottage homes with attached oversized garages and a community clubhouse. Emerald Cottages of Waco, at 2412 Marketplace Drive, has 32 single-story homes with attached garages.

“As the nation’s 55-plus population continues to expand, purpose-built rental communities of this quality remain in limited supply in Texas’ high-growth corridors,” said Capital Square co-CEO and chief investment officer Whitson Huffman.

McKinney has about 224,000 residents, according to McKinney Development Services. The McKinney Economic Development Corp. said the city’s population grew 379% between 1999 and 2019. In Waco, 26.8% of the population is 55 or older, according to the Waco Economic Development Group.

The full subscription comes amid a record pace for DST fundraising. Sales totaled $7.52 billion through September, up 27% from the same period in 2025, according to Mountain Dell Consulting. The firm projects about $10.2 billion for the full year.

Capital Square said that since its founding in 2012, it has acquired more than 175 real estate assets on behalf of more than 6,500 investors and completed more than $9.1 billion in transaction volume. Capital Square Living, its property management division, oversees nearly 14,000 apartments across eight states.

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