Capital Square Fills All-Cash Texas Active-Adult DST in Under Four Months
The $39.3 million offering carried no mortgage debt, a structure Capital Square’s founder linked to investor demand as higher rates weigh on leveraged programs.
October 21, 2026
Capital Square has fully subscribed CS1031 Texas Active Living Portfolio I, DST, a Regulation D private placement holding two single-family-style active-adult rental communities in McKinney and Waco, Texas. The sponsor acquired the properties in March 2026 and said the offering filled in less than four months.
The trust bought both communities for cash and carries no mortgage debt, so investors take on no interest rate, refinancing or lender foreclosure exposure at the property level. A Form D the trust filed in April set the offering at $39.3 million, with a $50,000 minimum investment and estimated sales commissions of about $3.3 million. WealthForge Securities served as the placement agent.
Louis Rogers, founder and co-chief executive officer, said all-cash DST offerings have grown popular as rising interest rates cut into cash flow on leveraged programs, and that the properties were bought for investors seeking income without interest rate and refinancing risk. He said the firm is focused on housing for active adults in Texas and other markets as the U.S. population ages.
Whitson Huffman, co-chief executive officer and chief investment officer, said the subscription reflected demand from 1031 exchange investors for single-family-style communities aimed at active adults, and that purpose-built rentals of this kind remain in short supply in Texas' growth corridors as the 55-plus population expands.
Two Cottage Communities
- Emerald Cottages of Stonebridge (McKinney, a Dallas suburb): 44 single-story cottage homes with attached oversized garages and a community clubhouse.
- Emerald Cottages of Waco: 32 single-story homes with attached garages, private entrances and finishes matching the McKinney property. Waco sits on the Interstate 35 corridor roughly midway between Dallas-Fort Worth and Austin.
Citing local economic development groups, the sponsor said McKinney has a population of about 224,000 and that roughly 26.8% of the Waco region's residents are 55 or older.
A Growing Texas Series
Portfolio I is one of several all-cash Texas active-adult DSTs Capital Square has brought to the 1031 market. The firm has since launched CS1031 Texas Active Living Portfolio II, DST, which holds two cottage communities in Kerrville and Round Rock, and on Oct. 5 announced CS1031 Texas Active Living New Braunfels, DST, a 72-home community near San Antonio that Rogers called the firm's fourth Texas Active Living offering. Each is structured without mortgage debt.
Capital Square, founded in 2012, said it has acquired more than 175 real estate assets on behalf of more than 6,500 investors and has completed more than $9.1 billion in transaction volume.
