Key Takeaways
- • Capital Square announced that its Regulation D private placement offering, CS1031 Texas Active Living Portfolio I, DST, has been fully subscribed, with the offering completed in less than four months after the properties were acquired in March 2026.
- • The portfolio comprises two all-cash, no-debt active-adult communities: Emerald Cottages of Stonebridge in McKinney (44 cottage homes) and Emerald Cottages of Waco (32 homes), eliminating interest rate and foreclosure risk for investors.
- • The offering targets Section 1031 exchange investors seeking replacement properties, and the sponsor cited strong demand for single-family-style senior housing amid rising interest rates impacting leveraged programs.
- • Capital Square, founded in 2012, has acquired more than 175 real estate assets for over 6,500 investors and completed more than $9.1 billion in transaction volume.
Summary
Capital Square, a national real estate sponsor of tax-advantaged investments and developer of housing communities, announced that its Regulation D private placement offering, CS1031 Texas Active Living Portfolio I, DST, has been fully subscribed. The offering raised equity from investors in two boutique single-family-style active-adult communities located in McKinney, a Dallas suburb, and Waco, Texas. The properties were acquired in March 2026 and the offering was fully subscribed in less than four months, according to the company's announcement distributed via Business Wire.
The portfolio is structured as an all-cash acquisition with no mortgage debt, which the company said eliminates interest rate and foreclosure risk for investors. Louis Rogers, founder and co-chief executive officer, said the all-cash structure serves investors seeking dependable income without interest rate and refinancing risk, and noted that all-cash DST offerings have grown in popularity as rising interest rates have pressured cash flow on leveraged programs.
Emerald Cottages of Stonebridge, at 2551 Alma Road in McKinney, includes 44 single-story active-adult cottage homes with attached oversized garages and a clubhouse. Emerald Cottages of Waco, at 2412 Marketplace Drive, includes 32 single-story homes with attached garages and private entrances. Waco sits along the I-35 corridor roughly halfway between Dallas-Fort Worth and Austin. Whitson Huffman, co-chief executive officer and chief investment officer, said the subscription demonstrates strong investor demand for single-family-style communities serving the active-adult demographic, and that such purpose-built rental communities remain in limited supply in Texas' high-growth corridors.
The company cited local demographic data: McKinney, with a population of approximately 224,000 according to McKinney Development Services, has seen long-term growth of roughly 379% between 1999 and 2019 per McKinney Economic Development Corporation. McLennan County, home to Waco, has a population of about 268,000 per the Heart of Texas Council of Governments, and approximately 26.8% of residents are aged 55 and older, according to Waco Economic Development Group. Founded in 2012, Capital Square also operates Capital Square Living, which oversees nearly 14,000 apartments across eight states. The offering was sold through WealthForge Securities, LLC, and the announcement carried standard risk disclosures, including illiquidity, vacancy, interest rate and loss-of-principal risks.
The portfolio is structured as an all-cash acquisition with no mortgage debt, which the company said eliminates interest rate and foreclosure risk for investors. Louis Rogers, founder and co-chief executive officer, said the all-cash structure serves investors seeking dependable income without interest rate and refinancing risk, and noted that all-cash DST offerings have grown in popularity as rising interest rates have pressured cash flow on leveraged programs.
Emerald Cottages of Stonebridge, at 2551 Alma Road in McKinney, includes 44 single-story active-adult cottage homes with attached oversized garages and a clubhouse. Emerald Cottages of Waco, at 2412 Marketplace Drive, includes 32 single-story homes with attached garages and private entrances. Waco sits along the I-35 corridor roughly halfway between Dallas-Fort Worth and Austin. Whitson Huffman, co-chief executive officer and chief investment officer, said the subscription demonstrates strong investor demand for single-family-style communities serving the active-adult demographic, and that such purpose-built rental communities remain in limited supply in Texas' high-growth corridors.
The company cited local demographic data: McKinney, with a population of approximately 224,000 according to McKinney Development Services, has seen long-term growth of roughly 379% between 1999 and 2019 per McKinney Economic Development Corporation. McLennan County, home to Waco, has a population of about 268,000 per the Heart of Texas Council of Governments, and approximately 26.8% of residents are aged 55 and older, according to Waco Economic Development Group. Founded in 2012, Capital Square also operates Capital Square Living, which oversees nearly 14,000 apartments across eight states. The offering was sold through WealthForge Securities, LLC, and the announcement carried standard risk disclosures, including illiquidity, vacancy, interest rate and loss-of-principal risks.
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