Capital Square launches fourth Texas Active Living DST in New Braunfels

Capital Square has launched its fourth Texas Active Living DST, and the pattern is now hard to miss: same corridor, same 55-plus cottage format, same Delaware statutory trust wrapper. The new offering, CS1031 Texas Active Living New Braunfels, DST, raises accredited equity for a 72-home age-restricted community in New Braunfels, the San Antonio suburb along Interstate 35, and is structured as an all-cash acquisition with no mortgage debt.

The underlying property, Emerald Cottages of New Braunfels, is the largest community in the Emerald Cottages portfolio, according to Capital Square. Its 72 one- and two-bedroom cottage homes, completed between 2022 and 2024 on an 11-acre site at 3025 Oak Run Parkway, are restricted to residents 55 and older. The single-story homes come with private drives and attached garages, granite and stone countertops, wood and carpet flooring, stainless appliances, washer and dryer connections, central HVAC and accessibility features designed for seniors, while the community offers a roughly 4,400-square-foot clubhouse, fitness room, game room, business center, dining room, swimming pool, barbecue and picnic area, and weekly exercise classes and community events.

Capital Square reports the community is in the late stages of initial lease-up at 91.7 percent, and the coverage does not disclose a target raise.

The fourth vehicle in the same corridor is what separates this from a one-off. Returning to the same metro, the same age-restricted cottage format and the same Delaware statutory trust wrapper suggests Capital Square has settled on a template rather than testing a single asset, and repeat issuance is how a sponsor builds a track record with the accredited investors these trusts are sold to. Its registered footprint is 785 accounts and $450 million in registered AUM as of early October.

The all-cash structure is the other half of the pitch: it removes the property from the refinancing question entirely, since no debt means no maturity to extend and no lender to negotiate with. The cost of that safety is yield, and with the community still filling, the distribution case rests on lease-up finishing and rents holding — a slower return of capital than a leveraged buyer would underwrite.

The offering lands inside the reclassification PWD has argued is under way: living sectors moving toward core allocations on demographics and construction scarcity, with senior housing the next candidate. DST equity is a different route into that trade — a single community sold to accredited investors rather than committed by an institution, with one lease-up curve carrying most of the thesis. The coverage does not size the raise, so how quickly this fourth Texas offering closes will be the first hard read on whether repeat issuance in this corridor keeps drawing accredited equity.