Capital Square, a leading sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, announced that its offering, CS1031 Texas Active Adult Living I, DST, has been fully subscribed. The Regulation D private placement for Woodland Cottages, a 62-unit, build-for-rent (BFR) active adult community in the San Antonio suburb of Fredericksburg, Texas, raised $34 million in equity from accredited investors. Capital Square acquired the property on behalf of the DST in August 2025.
“Capital Square invests in rental housing, a necessity for millions of people. History demonstrates that housing investments are safe and provide inflation protection,” said Louis Rogers, founder and co-chief executive officer of Capital Square.1 “Housing assets come in many types, from Class A and B multifamily, build-for-rent home communities, manufactured housing communities (MHC) and senior housing options. Capital Square aims to provide a diversified platform of housing investments to help investors and their advisors diversify. The active adult class of housing is very popular due to the aging of America and lack of quality rental housing options for the growing number of healthy adults.”
Located at 161 Friendship Lane, 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 residences, averaging 1,355 square feet. Each home includes open-concept layouts with zero-threshold showers and other aging-in-place features. Community amenities include a 6,000-square-foot clubhouse, swimming pool, fitness center and dedicated resident concierge to foster a vibrant and socially connected lifestyle.
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Situated in Texas Hill Country, Fredericksburg is within 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. Rents in Fredericksburg have increased by 12.2% annually, among the highest growth rates in the U.S. Additionally, in 2025, Fredericksburg was recognized as a “Top Retirement Dream Area” by Scout Report.
“The successful capitalization of this offering reflects the strength of our investor relationships and the market’s appetite for high-quality, purpose-built rental communities,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “Active adult housing remains one of the most resilient and undersupplied segments of the housing market. The quick completion of this offering demonstrates strong interest in this investment strategy.”
Home to over 80 wineries, Fredericksburg ranks as the second most visited wine tourism destination in the nation, just behind Napa Valley, Eater reported in 2025. Situated 80 miles west of Austin and 70 miles north of San Antonio, Fredericksburg is also renowned for its Main Street historic district. The area has an unemployment rate of 2.7% as of April 2025, a full 1.0% below Texas’ 3.7% and 1.2% below the national rate of 3.9%, reports Colliers. More than one 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.
Since its founding in 2012, Capital Square has acquired more than 175 real estate assets on behalf of over 6,500 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code, along with others seeking stable cash flow and capital appreciation.
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