Dave Bulger
Vice President
O (855) 378-3443|C (561) 715-3235
18 Formero Street, Rancho Mission Viejo, CA 92694
Investment underwriting report
Complete offering, sponsor, fee and comparative analysis
Prepared
August 26, 2026
Offering summary
CS1031 Zero Coupon DFW Hospitality DST is a Delaware Statutory Trust offering sponsored by Capital Square Realty Advisors, LLC. The offering encompasses a 188-unit full-service hotel property located at 815 Commerce Street in Fort Worth, Texas. The property was completely renovated and reopened in 2024. The total offering price is $41,530,000, capitalized through $9,230,000 in equity and $32,300,000 in debt financing. Structured as a zero-coupon investment, the loan carries a 36-year fixed term at an interest rate of 5.81% with a debt service coverage ratio of 1.0x, resulting in 0% projected cash distributions for Year 1 and across the full holding period. Property operations are managed in connection with Ashford Hospitality Trust and Blueprint Hospitality, which oversee 68 operating hotel properties.
0.0% of the offering is closed
$9,230,000 still available
$9,230,000
$0
0.0% of offering$0
Pending subscription$9,230,000
Open for subscriptionThe sponsor is raising $9,230,000 in gross equity proceeds. Front-end expenses and commissions total $923,000, establishing a 10% load on equity. Selling commissions account for up to 6.0% of gross equity proceeds, alongside wholesaling fees, dealer fees, and marketing allowances.
Sector
Hospitality
Investment Category
DST
Projected First Year Cashflow
0%
Avg. 0% over term
Min. Cash Investment
—
Min. 1031 Investment
—
Total Offering Price
$41,530,000
$220,904 per unit
Offering Debt
$32,300,000
5.81% · 36-year loan term
LTV
77.78%
On acquisition price
Units / Tenants
188
815 Commerce Street Fort Worth, Texas 76102
Property Age
The hotel property was completely renovated and reopened in 2024, indicating the current improvements date from 2024.
The offering represents a single-asset hospitality investment comprising a 188-unit full-service hotel in Fort Worth, Texas. Capitalization entails an offering price of $41,530,000 with a 77.78% offering LTV. Structured as a zero-coupon investment, initial and full-term projected cash flow yields are 0%.
Recent Asset Renovation
2024The 188-unit full-service hotel property was completely renovated and reopened in 2024.
Long-Term Fixed Financing
36-year loan termDebt is secured at a fixed interest rate of 5.81% across a 36-year term, eliminating interest rate reset risk.
Experienced Hotel Operator
68 propertiesAsset management and ground tenant operations are aligned with entities managing 68 hotel properties.
Zero Cash Distributions
0% YieldThe zero-coupon structure provides 0% projected cash flow distributions in Year 1 and across the full term.
High Leverage Profile
77.78% LTVDebt of $32,300,000 against a $41,530,000 offering price creates high leverage and leaves a tight 1.0x DSCR.
Single-Asset Concentration
1 PropertyPortfolio performance is entirely dependent on one 188-unit hospitality asset in Fort Worth, Texas.
The underlying asset benefits from a complete renovation and reopening in 2024, minimizing near-term deferred maintenance requirements. Long-term debt financing is locked at a fixed interest rate of 5.81% over a 36-year amortization period. Operational oversight is linked to Ashford Hospitality Trust and Blueprint Hospitality, who maintain a portfolio of 68 hotel properties.
Offering Equity
22.2% of offering
Offering Debt
77.78% LTV on acq.
Acquisition Cost
77.8% of offering
Offering Expenses
2.2% of offering
Reserves
2.0% of offering
Unallocated / other uses
18.0% of offering
Total Offering
$41.53M
Equity $9.23M + debt $32.30M
Acquisition Cost
$32.30M
77.8% of offering to the property
Total Fees & Expenses
$923K
10.00% of offering
Reserves
$830K
2.0% of offering
Total capital sources consist of $32,300,000 in debt and $9,230,000 in equity proceeds. Capital uses include the $37,145,000 property acquisition price, $1,114,350 acquisition fee, $750,000 in improvement reserves, $79,949 in lender-required reserves, and upfront offering fees and expenses totaling $923,000.
Tone reflects relative strength, not a rating
Cash Flow Yield
Zero-coupon structureBoth Year 1 and full-term average income are 0%, providing no ongoing cash flow to investors.
Financial Leverage
77.78% LTVThe loan amount of $32,300,000 represents a high leverage level with a minimum 1.0x DSCR.
Asset Quality
2024 RenovationThe 188-room full-service hotel was fully renovated and reopened in 2024.
Debt Terms
36-Year FixedInterest rate is fixed at 5.81% across a fully amortizing 36-year loan duration.
The offering carries elevated financial leverage with an offering LTV of 77.78% and a tight DSCR of 1.0x. As a zero-coupon DST, the structure generates 0% in ongoing cash distributions, making investor returns entirely dependent on debt paydown and terminal valuation. Additionally, performance remains concentrated in a single hospitality property.
Syndicated Cap Rate
—
NOI ÷ offering price
Upfront Load on Offering
10.00%
Total fees ÷ offering price
Load on Equity
10.00%
Total fees ÷ offering equity
Premium / Discount
—
Offering price vs. appraised value
Offering vs. Acquisition
111.8%
Offering price ÷ acquisition price
Price per Unit
$220,904
Offering price ÷ 188 units
Distribution rates as extracted from the offering materials.
The acquisition price is $37,145,000 against a total offering price of $41,530,000, reflecting $4,385,000 in structural markup and closing expenses. Total debt of $32,300,000 establishes a high leverage profile at 77.78% LTV. The zero-coupon debt service matches property cash flow, yielding a 1.0x DSCR and 0% distributed yield to equity.
Sponsor
Capital Square Realty Advisors, LLC is the sponsor of CS1031 Zero Coupon DFW Hospitality DST. The sponsor reports $5,000,000 in assets under management and utilizes operating partners with a 68-property full-service hospitality management footprint.
• Ashford Hospitality Trust and Blueprint Hospitality, which control the ground tenant and operator, focus on upper-upscale full-service hotels and currently have 68 operating hotel properties under management.
Properties owned or managed
$5,000,000
Across all programs
—
Prior DST offerings
—
DST-held assets
—
Disclosed headcount
Hospitality
Stated strategy
Capital Square Realty Advisors, LLC serves as the sponsor for this DST offering. The sponsor reports $5,000,000 in assets under management. Day-to-day operations involve Ashford Hospitality Trust and Blueprint Hospitality, which collectively manage 68 upper-upscale full-service hotel assets.
Extensive operating partner footprint with 68 hotel properties under management
Sponsor experience in structuring specialized zero-coupon 1031 DST products
Disclosed sponsor assets under management listed at $5,000,000
Substantial front-end fee extraction totaling $1,114,350 in acquisition fees
The property
$37,145,000 acquisition price
CS1031 Zero Coupon DFW Hospitality DST
full-service hotel
The hotel property was completely renovated and reopened in 2024, indicating the current improvements date from 2024.
815 Commerce Street Fort Worth, Texas 76102
815 Commerce Street Fort Worth, Texas 76102
$37,145,000
100.0% of portfolio
The trust secured a $17,600,000 loan with a 10-year fixed term at 5.1% interest, maintaining a 45% LTV and a 2.53x DSCR.
$32,300,000
36-year loan term
5.81%
Fixed
—
1.0x
77.78%
77.78%
The property was acquired for $33,065,000 at a 4.76% cap rate, resulting in a total acquisition cost of $34,329,352.
$37,145,000
$41,530,000
—
—
10%
10%
—
—
—
—
—
Total sources of $39,408,522 fund the acquisition price ($33,065,000), upfront fees ($2,234,533), carry costs ($995,000), and reserves ($215,000).
Total Fees & Expenses
$923,000
% of equity
10.00%
% of offering
10.00%
$1,151,621 including reserves (2.77% of offering)
Total fees & expenses
$923K
10.00% of offering
Offering expenses
$923K
2.22% of offering
Reserves held
$830K
2.00% of offering
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Acquisition Fee | $1,114,350 | 12.07% | 2.68% |
| Title & Recording Costs | $242,250 | 2.62% | 0.58% |
| Reserves (Lender Required) | $79,949 | 0.87% | 0.19% |
| Reserves (Improvements) | $750,000 | 8.13% | 1.81% |
| Finance Expenses | $1,031 | 0.01% | 0.00% |
| Total Acquisition Cost | $32,300,000 | 349.95% | 77.78% |
| Total Acq. Cost (Reserves) | $32,300,000 | 349.95% | 77.78% |
| Item | Amount | % Equity | % Offering |
|---|---|---|---|
| Selling Commissions | $553,800 | 6.00% | 1.33% |
| Dealer Fee | $46,150 | 0.50% | 0.11% |
| Wholesaling Fee | $92,300 | 1.00% | 0.22% |
| BD Due Diligence Allowance | $92,300 | 1.00% | 0.22% |
| BD Marketing Allowance | $92,300 | 1.00% | 0.22% |
| O&O Expenses | $138,450 | 1.50% | 0.33% |
| Third Party DD | $20,000 | 0.22% | 0.05% |
| Total Offering Expenses | $923,000 | 10.00% | 2.22% |
| Total Fees / Expenses | $923,000 | 10.00% | 2.22% |
| Total Upfront Fees (Reserves) | $1,151,621 | 12.48% | 2.77% |
Sponsor compensation includes a $578,638 acquisition fee, $654,256 dealer fee, up to 6.0% selling commissions, and a ($35,000) annual asset management fee.
$1,114,350
12.07%
$19,000
0.21%
$46,150
0.50%
$92,300
1.00%
$923,000
2.48%
Master tenant income is projected at $2,336,000 with $215,000 funded into dedicated master tenant reserves.
$50,000
$4,000,000
1.00%
Trust
administration, accounting and investor services expenses
Standing
56 of 57
Blended percentile across 14 extracted metrics.
Pricing
23rd pct
Leverage
23rd pct
Cost
67th pct
Ongoing
0th pct
Structure
2nd pct
Pricing
Leverage
Cost
Ongoing
Structure
Bar spans the cohort minimum (Min) to maximum (Max), labelled beneath with the cohort median (Med). Shaded band is the 25th–75th percentile, the tick is the median, and the dot is this offering.
Year 1 distribution
0th pct0.00%median 4.60%
Acquisition LTV
3rd pct77.78%median 46.50%
DSCR
0th pct1.00xmedian 2.00x
Interest rate
13th pct5.81%median 5.11%
Total upfront load
98th pct2.22%median 7.50%
| Metric | This offering | Cohort median | 25th–75th | Difference | Percentile |
|---|---|---|---|---|---|
| Price per unitPricing | $221K | $293K | $180K – $434K | −$72K | 68th |
| Year 1 distributionPricing | 0.00% | 4.60% | 4.40% – 5.00% | −4.60% | 0th |
| Avg. distribution (term)Pricing | 0.00% | 5.08% | 4.77% – 5.32% | −5.08% | 0th |
| Acquisition LTVLeverage | 77.78% | 46.50% | 18.89% – 49.80% | +31.28% | 3rd |
| Offering LTVLeverage | 77.78% | 46.09% | 2.67% – 49.53% | +31.69% | 0th |
| DSCRLeverage | 1.00x | 2.00x | 1.79x – 2.12x | −1.00x | 0th |
| Interest rateLeverage | 5.81% | 5.11% | 5.00% – 5.35% | +0.70% | 13th |
| Loan termLeverage | 36 yrs | 10 yrs | 8.5 yrs – 10 yrs | +26 yrs | 100th |
| Total upfront loadCost | 2.22% | 7.50% | 5.00% – 9.50% | −5.28% | 98th |
| Selling commissionCost | 1.33% | 6.00% | 5.00% – 6.00% | −4.67% | 97th |
| Acquisition feeCost | 12.07% | 2.52% | 1.74% – 3.58% | +9.56% | 0th |
| ReservesCost | 8.99% | 5.53% | 1.67% – 8.70% | +3.46% | 74th |
| Equity share of capitalStructure | 22.22% | 100.00% | 52.93% – 100.00% | −77.78% | 4th |
| Hold periodStructure | 36 yrs | 10 yrs | 8.5 yrs – 10 yrs | +26 yrs | 0th |
| Offering | Sponsor | Cap rate | LTV | DSCR | Load | Hold | Match |
|---|---|---|---|---|---|---|---|
| BREX Briggs MF DST | Brookfield Real Estate Exchange LLC | — | — | — | 3.72% | — | 65% |
| Passco Preston Ridge DST | PASSCO | 5.00% | 46.93% | 2.06x | 4.06% | — | 63% |
| Starboard Makley DST | Starboard Realty Advisors | 5.25% | 84.00% | 1.70x | 5.33% | 10 yrs | 59% |
| CF Biscayne Multifamily DST | Cantor Fitzgerald Investors, LLC | — | 52.30% | — | 3.90% | — | 59% |
| FREX DB SERIES I DST | Fortress Real Estate Exchange LLC | — | 47.10% | — | 5.55% | 11 yrs | 59% |
| Inland Zero Coupon Utility DST | Inland Private Capital Corporation | 7.25% | 76.70% | — | 1.96% | — | 58% |
| NexPoint Oasis DST | NexPoint Real Estate Advisors IV, L.P. | 4.84% | 53.05% | 1.81x | 4.39% | 10 yrs | 54% |
| CS1031 Colony at Centerpointe Apartments DST | Capital Square | 5.28% | 54.30% | 1.89x | 4.89% | — | 54% |
Match score is a normalised distance across the full extracted metric set — asset type, pricing, leverage, cost and structure all weighted equally.
Figures on this page are generated from automated extraction of offering documents and may contain errors or omissions. Verify every metric against the sponsor's offering materials before relying on it for an investment decision.