Capital Square Rolls Out All-Cash DST on Two Texas Active-Adult Cottage Communities
Capital Square has launched CS1031 Texas Active Living Portfolio II, DST, a Delaware statutory trust offering structured as an all-cash acquisition of two active-adult cottage communities in Kerrville and Round Rock, Texas. The Richmond, Va.-based sponsor did not disclose the target equity raise.
The offering is open to accredited investors seeking Section 1031 exchange-eligible replacement property. The DST carries no mortgage debt, eliminating debt service and lender foreclosure risk – a structure the sponsor has used in a series of Texas active-adult offerings. Capital Square launched CS1031 Texas Active Living Portfolio I, DST in March, a $39 million all-cash offering in the same segment. That offering followed the fully subscribed CS1031 Texas Active Adult Living I, DST, a $34 million offering announced in December 2025.
The two underlying properties – Emerald Cottages of Kerrville and Emerald Cottages Round Rock – each include 32 single-story, cottage-style homes purpose-built with ADA-accessible floor plans. Both are 100% occupied with active waitlists as of June 2026, and each reported zero bad debt and no rental concessions over the trailing 12 months.
“Texas continues to be one of the strongest markets in the country for active-adult housing. These communities exemplify the quality, location and demand profile we look for in active adult investments,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Both properties are fully occupied with waitlists, generate stable cash flow with no debt service, and offer investors a tax-advantaged way to participate in one of the most resilient segments of the housing market.”
Emerald Cottages of Kerrville is located at 1501 Bandera Highway in Kerrville, a Hill Country city in Kerr County with an economy anchored by healthcare, tourism, and agriculture. The Kerrville VA Medical Center is within a five-minute drive. The community reported 91% resident retention over the trailing 12 months and carries a waitlist of more than 10 prospective residents.
Emerald Cottages Round Rock is located at 4099 Teravista Club Drive in Round Rock, within the Austin metro area and adjacent to the Teravista master-planned community. Round Rock is home to major employers including Dell Technologies, Amazon, and St. David’s Medical Center and offers what the City of Round Rock describes as a cost-of-living advantage relative to the broader Austin metro supported by one of the region’s lowest property tax rates. The community reported 81% resident retention over the trailing 12 months and carries a waitlist of 10 prospective residents.
“Kerrville and Round Rock are two of the most compelling Texas markets for age-restricted housing,” said Whitson Huffman, co-CEO and chief investment officer of Capital Square. “Kerrville is an established Hill Country retirement destination with a diversified economy, and Round Rock offers a cost-of-living advantage relative to the broader Austin metro and one of the region’s lowest property tax rates.”
Capital Square has acquired more than 175 real estate assets on behalf of more than 6,500 investors since its founding in 2012 and has completed more than $8.9 billion in transaction volume.
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