#USA #Capital Square #Fredericksburg #Texas housing #Woodland Cottages

Capital Square Acquires Active Adult Community in Texas

In a significant move within the real estate market, Capital Square has announced its acquisition of Woodland Cottages, an innovative active adult build-for-rent community located in Fredericksburg, Texas. This development underlines the company’s strategic investment goals in the rapidly growing housing sector. With this acquisition, Capital Square continues to enhance its tax-advantaged real estate offerings, particularly targeting accredited investors looking for secure and profitable investment options.

The Woodland Cottages community consists of 62 meticulously designed rental units, catering specifically to active adults. This acquisition, on behalf of the CS1031 Texas Active Adult Living I, DST fund, is part of a broader strategy that has seen Capital Square invest in several types of housing markets. Louis Rogers, the company's founder and co-CEO, expressed optimism about diversifying investment offerings—from multifamily units to age-restricted manufactured housing in Florida and now to active adult rentals in Texas.

Located on 161 Friendship Lane, Woodland Cottages provides both one-bedroom and two-bedroom homes, averaging 899 and 1,355 square feet respectively. Each unit features open-concept floor plans with ADA-compliant designs, including zero-threshold showers to accommodate aging residents. The community also offers several amenities, including a spacious 6,000-square-foot clubhouse, a fitness center, and a swimming pool, all aimed at promoting a socially engaging lifestyle among residents.

The timing of this acquisition is particularly strategic given Fredericksburg's rapid population growth of 18.8% over the past five years. This growth is largely fueled by the area's attractiveness as a retirement destination and its overall appealing lifestyle offerings. Recently recognized as a "Top Retirement Dream Area" by Scout Report, Fredericksburg is drawing an increasing number of retirees looking for quality housing that aligns with their lifestyle preferences.

Rents in Fredericksburg have surged by 12.2% annually, indicating strong demand for housing in the area. Commenting on the market's potential, Whitson Huffman, co-CEO and Chief Investment Officer, pointed out that the region’s favorable demographic trends and rising rental rates present a unique opportunity for high-quality housing investment.

Known for its vibrant wine tourism, Fredericksburg ranks as the second most visited wine tourism location in the United States, trailing only Napa Valley. The area is approximately 80 miles west of Austin and 70 miles north of San Antonio, making it ideally situated for both residents and visitors. Additionally, the economic landscape of Fredericksburg is robust, with an unemployment rate of 2.7%, which is lower than the state and national averages. The city welcomes over a million visitors each year, generating significant revenue that supports local jobs and businesses.

Since its inception in 2012, Capital Square has built an impressive portfolio, acquiring over 170 properties valued significantly under Section 1031 of the Internal Revenue Code. This latest acquisition is part of Capital Square's commitment to providing stable investment options that promise both cash flow and capital appreciation for its investors.

About Capital Square

Capital Square is a national firm focused on tax-advantaged real estate investments and actively develops and manages multifamily and build-for-rent communities. With over $7.9 billion in transaction volume and more than 2,000 apartment units developed, Capital Square stands as a leader in the industry, serving a diverse clientele, including high-net-worth individuals and institutional investors.

For more detailed information about their offerings and recent projects, please visit CapitalSquare.com.