SAN ANTONIO, June 11 — Capital Square, a leading sponsor of tax-advantaged real estate investments and a national developer and manager of housing communities, today announced the launch of CS1031 Texas Active Living Portfolio II, DST. Capital Square seeks to raise equity from accredited investors for its latest sponsored Delaware statutory trust offering, structured as an all-cash acquisition with no mortgage debt.
Investors receive ownership interests in two cottage-style, active-adult living communities located in Kerrville and Round Rock, suburbs of San Antonio and Austin, respectively.
“Texas continues to be one of the strongest markets in the country for active-adult housing. These communities exemplify the quality, location and demand profile we look for in active adult investments,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Both properties are fully occupied with waitlists, generate stable cash flow with no debt service, and offer investors a tax-advantaged way to participate in one of the most resilient segments of the housing market.”
Located at 1501 Bandera Highway, in Kerrville, the Emerald Cottages of Kerrville community includes 32 single-story homes purpose-built with ADA-accessible floor plans, including step-free entries, wide doorways and walk-in showers. Interior finishes include upgraded flooring, granite countertops, custom cabinets with tile backsplashes, stainless steel appliances, large walk-in closets and additional storage throughout. Immediately adjacent amenities include a paved walking path in a natural setting as well as access to the Riverhill Country Club and Golf Course directly across the street, a premium setting for active-adult residents. The Kerrville VA Medical Center, a major provider of primary and specialty healthcare services in the area, is located within a five-minute drive of the property.
The community is 100% occupied with a waitlist of more than 10 prospective residents as of June 2026. Over the trailing 12 months, the property achieved 91% resident retention, zero bad debt and no rental concessions.
Located at 4099 Teravista Club Drive, in Round Rock, the Emerald Cottages Round Rock community includes 32 single-story homes purpose-built with ADA-accessible floor plans, including step-free entries, wide doorways and walk-in showers. The cottage-style homes feature private entrances, a zero-maintenance lifestyle and luxury interior finishes including upgraded flooring, granite countertops, custom cabinets with tile backsplashes, stainless steel appliances, large walk-in closets and additional storage. The property is surrounded by the Teravista master-planned community, which includes an 18-hole golf course, fitness centers, tennis and pickleball courts, and over 10 miles of hiking and biking trails.
The community is 100% occupied with a waitlist of 10 prospective residents as of June 2026. Over the trailing 12 months, the property achieved 81% resident retention, zero bad debt and no rental concessions.
“Kerrville and Round Rock are two of the most compelling Texas markets for age-restricted housing,” said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “Kerrville is an established Hill Country retirement destination with a diversified economy, and Round Rock offers a cost-of-living advantage relative to the broader Austin metro and one of the region’s lowest property tax rates. Strong occupancy, waitlists and resident retention at both communities reinforce our conviction in well-located, differentiated active-adult housing as we seek to deliver lasting value for investors.”
Kerrville is located in Kerr County in the Texas Hill Country, a market known as a retirement and recreational destination. The city features a highly diversified economy supported by healthcare, education, retail, agriculture and tourism. Healthcare is the primary economic driver, anchored by Peterson Regional Medical Center, Kerrville State Hospital and the Kerrville Veterans Hospital, while tourism and hospitality are supported by outdoor recreation, wineries and annual cultural events.
Round Rock is located in Williamson County within the Austin metro area, fewer than 25 miles north of downtown Austin and 15 miles from The Domain, an upscale open-air retail and dining destination. According to the City of Round Rock, the city offers a cost-of-living advantage relative to the broader Austin metro, supported by one of the region’s lowest property tax rates. Round Rock features a rapidly expanding local economy anchored by major employers, including Dell Technologies, Amazon and St. David’s Medical Center.
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.