Offering summary
Texas Active Living Portfolio II DST is an all-cash, zero-leverage Delaware Statutory Trust sponsored by Capital Square. The offering consists of a 64-unit portfolio across two boutique 55+ active adult cottage-style communities: Emerald Cottages of Kerrville (built in 2019) and Emerald Cottages of Round Rock (built in 2018), Texas. Total offering equity is $32,700,000 against an acquisition price of $26,700,000 and an appraised value of $26,900,000. Both properties report 100% occupancy. The trust features a 10-year term with a Year 1 projected distribution of 4.50% and an average full-term income of 5.00%. Front-end load totals $6,000,000 including reserves, with total offering expenses of $3,155,550.
Capital raise
0.0% of the offering is closed
$32,700,000 still available
$32,700,000
$0
0.0% of offering$0
Pending subscription$32,700,000
Open for subscriptionTotal offering equity is $32,700,000 with a minimum cash investment of $50,000. To date, $292,267 of equity has closed, $5,600,000 is under current reservation, and $26,807,733 remains available.
Offering terms
Sector
Multifamily
Investment Category
DST
Projected First Year Cashflow
4.5%
Avg. 5% over term
Min. Cash Investment
$50,000
Min. 1031 Investment
—
Total Offering Price
$32,700,000
$510,938 per unit
Offering Debt
$0
All-equity offering
LTV
0%
On acquisition price
Units / Tenants
64
Kerrville and Round Rock, Texas
Property Age
Emerald Cottages of Kerrville was built in 2019 and Emerald Cottages of Round Rock was built in 2018, indicating that both properties are relatively new active adult communities.
The portfolio comprises two recently built active adult properties in Kerrville and Round Rock, Texas, totaling 64 units at 100% occupancy. The transaction is structured with 0% LTV and no debt service obligations, generating a Year 1 income rate of 4.50%. Total equity required is $32,700,000.
Strengths & considerations
Key strengths
Zero-Debt Capital Structure
0% LTVThe all-cash structure eliminates lender covenants, interest rate volatility, and refinancing exposure over the 10-year term.
Full Occupancy & Modern Vintages
100% OccupancyBoth communities were recently built (Round Rock in 2018, Kerrville in 2019) and are fully occupied.
Established DST Sponsor
130+ DSTs / $2.6B AUMCapital Square maintains an audited full-cycle multifamily DST track record with over 130 offerings completed since 2012.
Key considerations
Offering Price Premium
21.56%The $32,700,000 offering price reflects a 21.56% premium over the $26,700,000 acquisition price and 82.26% appraised-to-offering ratio.
Front-End Load & Fees
$3,155,550 FeesTotal front-end fees of $3,155,550 represent a 9.65% load on equity, rising to $6,000,000 (22.47% of acquisition cost) including all reserves.
Small Portfolio Scale
64 UnitsThe portfolio consists of only 64 total units across two boutique properties, which increases operational sensitivity to tenant turnover.
The offering carries zero debt risk with an all-cash 0% LTV capital structure. Both properties are relatively new (2018 and 2019 vintage) and maintain 100% occupancy. Sponsor Capital Square brings substantial experience with over 130 completed DST offerings and $2.6B in AUM.
Sources, uses & fee assessment
Capital Sources
- $32.70M
Offering Equity
100.0% of offering
Where the Capital Goes
- $27.49M
Acquisition Cost
84.1% of offering
- $3.16M
Offering Expenses
9.7% of offering
- $1.81M
Reserves
5.5% of offering
- $241K
Unallocated / other uses
0.7% of offering
Total Offering
$32.70M
All equity — no mortgage debt
Acquisition Cost
$27.49M
84.1% of offering to the property
Total Fees & Expenses
$3.16M
9.65% of offering
Reserves
$1.81M
5.5% of offering
Gross offering proceeds of $32,700,000 fund the $26,700,000 property acquisition, $3,155,550 in total offering expenses and fees, $1,043,864 in lumped Master Tenant reserves, $768,000 in improvement reserves, and $547,336 in carry/financing costs.
Risk read
Tone reflects relative strength, not a rating
Leverage & Debt
PositiveThe offering is 100% equity-financed with 0% LTV, eliminating debt service burden, balloon risk, and interest rate exposure.
Occupancy & Vintage
PositiveProperties built in 2018 and 2019 are 100% occupied in two Texas submarkets, supporting Year 1 base rent projections.
Syndication Markup
CautionTotal offering price exceeds the $26,900,000 appraised value, with an appraisal-to-offering ratio of 82.26%.
Load & Expenses
CautionFront-end expenses, commissions, and reserves total $6,000,000, representing 22.47% of the original acquisition cost.
Key underwriting considerations include an offering price that represents a 21.56% premium over purchase price, upfront fees and reserves totaling $6,000,000, and a small 64-unit portfolio footprint across two locations. Disposition fee is set at 2.95% upon exit.
Calculated underwriting metrics
Syndicated Cap Rate
4.61%
NOI ÷ offering price
Upfront Load
9.65%
Total fees ÷ offering price (all-equity offering)
Premium / Discount
21.56%
Offering price vs. appraised value
Offering vs. Acquisition
122.5%
Offering price ÷ acquisition price
Price per Unit
$510,938
Offering price ÷ 64 units
The acquisition cap rate is 5.65% based on the $26,700,000 purchase price, compressing to a syndicated cap rate of 4.61% on the $32,700,000 offering price. The offering price reflects a 21.56% premium over the acquisition price, with total upfront fees and reserves equaling $6,000,000 (22.47% of acquisition cost).
Sponsor
Sponsor
Capital Square
Capital Square is an established national real estate sponsor founded in 2012 with $2.6B in assets under management and a core focus on multifamily and residential communities. The firm possesses extensive DST track record, having launched over 130 DST programs with audited full-cycle results.
The offering is a 64-unit portfolio consisting of two boutique active adult (55+) cottage-style communities.
Properties owned or managed
$2,600,000,000
Across all programs
130+
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
multifamily
Stated strategy
Capital Square serves as the sponsor, managing $2.6B in assets under management with a focus on multifamily real estate. The firm has completed over 130 individual DST offerings since its formation in 2012 and maintains an audited full-cycle multifamily DST track record.