Capital Square Secures Full Funding for Active Adult Community in Texas

Capital Square, a prominent developer and sponsor of tax-efficient real estate investments, revealed exciting news on December 15, 2025, regarding its latest venture in affordable housing. The company announced that its offering labeled "CS1031 Texas Active Adult Living I, DST" has been completely funded. The offering raised an impressive $34 million from accredited investors, showcasing a strong demand for quality rental properties in the current market. This financial backing was directed toward Woodland Cottages, a vibrant 62-unit build-for-rent (BFR) community located in the San Antonio suburb of Fredericksburg, Texas.

In August 2025, Capital Square acquired the Woodland Cottages property, adapting to a growing demand for rental housing—something essential for millions across the country. According to Louis Rogers, the founder and co-CEO of Capital Square, investment in housing not only serves a vital purpose but also offers a hedge against inflation. Rogers pointed out the varying types of housing assets that could be beneficial to investors, including multifamily units, manufactured housing communities, and senior living options. With the U.S. population aging, there is a noticeable gap in options available for active adults seeking high-quality living arrangements.

Woodland Cottages is designed with active adults in mind, featuring ADA-compliant homes. The community includes diverse housing options, offering 20 one-bedroom residences averaging 899 square feet, along with 42 two-bedroom units averaging 1,355 square feet. Each residence is designed for comfort and convenience, featuring open-concept layouts and zero-threshold showers—important features for residents who prioritize aging-in-place solutions. To promote social interaction and a fulfilling lifestyle, the community also boasts a wealth of amenities. These include a sprawling 6,000-square-foot clubhouse, a swimming pool, a fitness center, and access to a dedicated concierge to cater to residents' daily needs.

Fredericksburg is a remarkable location for such a community, nestled in Texas Hill Country, and is recognized as one of the fastest-growing regions in the country. Over the last five years, the area has seen population growth of 18.8%, largely fueled by its appeal to retirees and those seeking a vibrant lifestyle. Adding to its allure are the climbing rent prices, which, according to reports, have increased by 12.2% annually, placing Fredericksburg among the highest growth areas in the nation. Furthermore, in 2025, the city earned accolades as a "Top Retirement Dream Area" by Scout Report, further underscoring its desirability.

Whitson Huffman, co-CEO and Chief Investment Officer at Capital Square, attributed the successful funding of this DST offering to the strong relationships the firm nurtures with investors and the high demand for expertly constructed rental communities. The active adult housing sector continues to be resilient, a segment of the market that remains significantly underserved. The rapid subscription of this offering highlights a keen interest in investing in sustainable, purposeful housing solutions.

Fredericksburg is not just popular for its housing; it is also recognized for its burgeoning wine tourism industry. Home to over 80 wineries, the city is the second most visited wine tourism destination in the U.S., trailing only Napa Valley. Strategically located just 80 miles west of Austin and 70 miles north of San Antonio, Fredericksburg boasts a rich history, particularly visible in its vibrant Main Street historic district. According to data from Colliers, the city has an enviable unemployment rate of 2.7% as of April 2025, significantly lower than the Texas and national averages. The million-plus visitors that flock to the city each year generate a staggering $175 million in tourism revenue, collectively supporting around 1,200 local jobs as reported by the Fredericksburg Convention and Visitors Bureau Economic Impact Report of 2025.

Capital Square, founded in 2012, has curated a diverse portfolio, acquiring over 175 real estate assets for more than 6,500 investors. Their offerings are sought after for quality properties that are eligible for tax deferral under Section 1031 of the Internal Revenue Code, among others. With a transaction volume exceeding $7.9 billion, Capital Square’s mixed-use developments include over 2,000 apartment units and they continue to play a significant role in providing housing solutions across several states. The company’s dedication to serving high-net-worth investors and its recognition as one of the fastest-growing private companies in the nation by Inc. 5000 for nine consecutive years solidifies its industry standing as a leader in tax-advantaged real estate investments.

Topics Consumer Products & Retail)

【About Using Articles】

You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.

【About Links】

Links are free to use.