A Roth conversion allows you to move money from a traditional IRA into a Roth IRA by paying taxes now in exchange for tax-free growth in the future.

For investors allocating retirement savings into private real estate funds, syndicated real estate or other alternative investments, this strategy can be especially powerful.

Why Consider a Roth Conversion?

1. Tax-Free Growth on High-Value Opportunities — Private real estate investments often aim for long-term appreciation. Moving funds to a Roth IRA before growth occurs allows all future gains to be completely tax-free, assuming qualified distribution requirements are met.
2. Tax-Free Income in Retirement — Distributions from private real estate funds, such as rental income, preferred returns or cash flow events, can be withdrawn tax-free in retirement.*
3. No Taxes on Capital Events — Refinances, asset sales and other capital events inside a Roth IRA create no tax liability, helping maximize total return.**
4. Protection From Tax Inefficiencies — Real estate income can involve depreciation recapture, complex K-1 reporting or tax-inefficient returns. A Roth IRA may help eliminate future tax exposure on qualified withdrawals.
5. No Required Minimum Distributions (RMDs) — Roth IRAs don’t force distributions at age 73. Your real estate investments can continue compounding undisturbed for as long as you wish.
6. Strong Estate Planning Advantages — Roth IRAs pass tax-free to heirs, allowing the long-term growth of real estate investments to benefit future generations, subject to applicable distribution rules.
7. Control and Flexibility in Retirement — Tax-free Roth income helps manage tax brackets, Medicare surcharges and Social Security taxation, offering more control over your financial picture.
8. Smart for High-Upside or Long-Duration Investments — If a fund or property is expected to grow significantly, converting before growth occurs can lock in taxes at a lower value today. This enhanced Roth IRA Conversation strategy, seizing upon the “J Curve,” at the investment’s lowest valuation may offer significant further advantages.

Is a Roth Conversion Right for You?

A Roth conversion can be a powerful tool, especially for long-term investors in private real estate. However, it involves an upfront tax cost and should be evaluated carefully based on your income, time horizon and investment strategy.

We recommend consulting with a qualified tax or financial professional to determine whether a Roth conversion aligns with your individual goals and circumstances.

Contact the Capital Square team if you have any questions.

* If qualified Roth distributions rules are met (e.g., five-year rule and age 59½)
** However, certain investments may generate unrelated business taxable income (UBTI), which could result in tax liability within the account.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses.

The post Roth Conversions for Real Estate & Private Fund Investors appeared first on Capital Square - Raising capital, buildings and expectations.

At Capital Square, we believe that durable performance is the product of discipline: clear priorities, repeatable execution and the conviction to make deliberate decisions grounded in fundamentals. As we look deeper into 2026 and beyond, we do so with gratitude for the partnership of our investor family and with a sharpened focus on what comes next.

Capital Square has evolved from a fast-growing sponsor of tax-advantaged real estate investments into something broader and more powerful: a vertically integrated platform with the ability to originate, capitalize, finance, develop, manage and operate real estate at scale. That transformation didn’t happen overnight. It was built deliberately through investment in people, systems and long-term capabilities that position the firm to compete at the highest level.

Now, we are taking the next step.

Our 2026–2030 Vision

Capital Square has charted a five-year roadmap to strengthen our position as a premier manager of alternative investments, as well as a best-in-class real estate developer and property manager.

The purpose of our Strategic Plan is simple: to grow with intention.

We have built an exceptional platform and have a superior team. But ambition alone is not enough. Our great machine can do more, but only if it is guided by a thoughtful strategy, aligned incentives and the infrastructure to scale without compromising quality.

Our 2026-2030 Strategic Plan is our commitment to that standard and the future.

The Three Pillars of Our Strategy

Our “Invest, Build, Manage” strategy focuses on:

1. Robust offering growth via a broad suite of tax-advantaged investment solutions designed to address diverse investor and advisor needs, goals and interests;
2. Development projects that expand Capital Square’s investment vehicles and leverage the best-in-class assets we are actively constructing; and
3. Optimizing the firm’s vertically integrated structure now in place to drive operational efficiencies, increase profitability and maximize investor returns.

Vertical integration is often discussed. Fewer firms actually achieve it.

At Capital Square, our “build” and “manage” pillars will continue to create the foundation that supports and enhances our “invest” function.

Over the next five years, we will focus on the systems, processes, offerings and accountability required to turn our platform into a compounding advantage that enhances performance, supports scale and increases the durability of our earnings.

The Chassis We Built and the Future We’re Engineering

Capital Square built the distribution model first. We built a chassis: a platform capable of delivering investment solutions through trusted channels, with strong relationships and consistent execution.

A chassis determines what a vehicle can carry. It determines how fast it can go. It determines how well it navigates the bumps in the road and whether it can prevail through the miles ahead.

While Capital Square built our chassis to serve as an investment manager with fundraising through the independent broker-dealer and registered investment advisor channels, we have a platform capable of dramatic growth. Our platform is also capable of serving institutional investors with the same discipline and consistency that has defined our current success.

Our chassis can support countless vehicles, and we’re ready to engineer that future, built upon our many competitive advantages. While we recognize that road conditions can change and fuel supply isn’t always predictable, we have the chassis and the horsepower to support exceptional growth.

By focusing our Strategic Plan on specific targets, including fully supporting all operating segments of the firm through recurring revenue, we create a hybrid infrastructure that will give our vehicle the ability to regenerate energy through many cycles. These targets establish enduring capabilities that remain stable even when market conditions become unpredictable.

Additional 2026-2030 priorities include:

• Strengthening our position through the continued cultivation of the top-tier talent on our expert team — hiring and retaining the most qualified professionals — while advancing training and reinforcing the family fundamentals and across-the-board excellence that power our long-term success
• Elevating our position as a nationally recognized leader in diverse tax-advantaged real estate investments (for example, DSTs, OZs, development funds and REITs) amid the approaching “Great Wealth Transfer,” while remaining agile to increase our fundraising capabilities through new vehicles and partnerships that drive our 2030 goals forward
• Seizing our construction and development expertise to establish new channels for broker-dealer, RIA, wirehouse and institutional investor expansion
• Enhancing investor and partner experiences through personalized engagement and robust educational offerings, tailored to different audience segments
• Leveraging data analytics, innovative technologies and new digital platforms for external relationship growth, internal assessments, asset performance optimization, company advancement and greater fundraising capabilities

With these priorities defined and specific new initiatives already underway, our next chapter is ready to begin – a chapter where Capital Square is no longer defined by a single vehicle but by a motorcade of vehicles.

From Market Leader to Fully Realized Real Estate Platform

Between 2026 and 2030, Capital Square will continue its transformation from a market leader in tax-advantaged real estate into a fully realized, vertically integrated investment, development and management firm.

We are proud of our foundational fundraising expertise and positioned to expand upon this success. We know how to raise capital. We know how to structure offerings. We know how to serve advisors and investors with precision and integrity.

We will not pursue growth for growth’s sake. We will pursue growth that compounds and benefits all stakeholders.

That means focusing on performance and investor outcomes. It means making investments in systems and talent that will define what we can deliver five years from now. It means being deliberate in how we build legacies.

We built the chassis, and we are excited about the road ahead, where we see the growth of our scaled platform that will provide differentiated investment solutions without sacrificing our highest standards of accountability and excellence.

The years ahead will reward firms that can operate with both flexibility and conviction — firms that can deliver at scale, execute through changing markets and offer tax-advantaged investment solutions built for real-world investor needs.

We believe Capital Square is positioned to do exactly that.

We drive forward in 2026 with momentum, with a stronger platform than ever, and with a plan designed not just to grow but to create lasting value.

Thank you for your continued trust and partnership. We do not take it lightly. We are building for the long term, and we are proud to do it with you.

Regards,

Louis J. Rogers
Founder & Co-Chief Executive Officer
Capital Square

Whitson Huffman
Co-Chief Executive Officer & Chief Investment Officer
Capital Square

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses.

The post Louis Rogers and Whitson Huffman’s Annual Public Letter to Investors: April 2026 appeared first on Capital Square - Raising capital, buildings and expectations.

Approximate Transcript:

A question we’ve been getting recently is, “how are we positioning our offerings, given the geopolitical environment and everything going on the world?”

It’s a really fair question. There are a lot of things going on. At top of mind right now is the war with Iran, and there’s a ton of questions. How long will it last? What does it mean for global oil output? Are the Straits of Hormuz open?

And while real estate is seemingly so simple, things like this in the global context do have an impact to how we think about real estate, how we price our investments, and how we think about our existing portfolio. There’s obvious things inside of real estate, like commodities and all the things that oil touches and how it relates to input costs for development. That also stems to things like DSTs.

When we think about capital reserves and projects, something as seemingly obvious as a asphalt resurfacing of an apartment building. Really easy, really straightforward. What if the cost of the asphalt is higher? What do you do and how do you position it? When we’re underwriting new deals, how has the underwriting changed to account for today’s world? And is that the prudent thing to do? Is it a flash in the pan? Will it continue?

We’ve learned a lot over the last nearly 14 years as a company at Capitol Square. In the eight years that I’ve been here, one of the things that stands out at top of mind is nothing lasts forever. When it was 2021, 2022, and inflation was transitory. I think we all bought into that concept. Now, granted, COVID was a recent phenomenon. We were dealing with the hangover of 2020 in the first part of 2021. It was really scary. There really wasn’t a ton of else to do but to listen to the experts.

When we take a step back and we think about that window in time, it was great for many reasons. Time spent at home with loved ones. I think I walked more in my neighborhood than I have in my entire life combined. It’s probably the fittest I ever will be in my life.

But the market was overheated. Cap rates were incredibly tight. Interest rates were incredibly low, and that inflation component was supposed to be transitory. It wasn’t going to be permanent. Rates stayed low until they didn’t cap. Cap rates stayed low until they didn’t rent. Growth continued to grow until it stopped. And when we think about the context of today’s environment, you have to look at something like Iran. Is it stopped for now? Will it continue?

Nobody has a crystal ball. We have to do the best with the information that we have. But as we think about how we structure these investments, we need to make them weatherproof, durable, all-season. It needs to work in a higher rate environment – pretty much anything works in a low-rate environment.

In a volatile environment, in a world where we don’t know what’s going to come next, how do we position offerings today in 2026 to do well and be all weather?

We’re looking at it from two lenses. The first all cash offerings, taking the debt capital markets out of risk. That’s a very seemingly easy way to alleviate a lot of the pressure inside of a cap stack, and certainly for a DST, that is one of the measures that we look at. How easy is it to overcome both the load but also to pay off that senior mortgage, to operate flexibly, to be able to make investor distributions. It’s a lot easier, and you have a lot more runway, when it’s an all-cash deal.

So, you’ve probably noticed we’ve done a lot more all cash offerings, but there’s a fundamental issue with that inside the DST landscape. Folks need equal or greater debt on their up leg. If you’re coming out with 50% LTV at your sale, you need to match that with 50 plus percent leverage in your DST investment. So, we’ve certainly seen a barbell. You have all cash offerings, and you have offerings that really need and want to be above 50% loaded leverage.

Inside of that 50% plus loaded leverage offering, you have to be really disciplined about where you pick your spot.

When we look inside of our portfolio, there’s a lot to like. Our portfolio is broadly well occupied. Coming out of the seasonal lows of winter leasing, we’re sitting today about 93 and a half trending towards 94% occupancy. It’s a really great number. However, we know that there’s a lot of difference between an asset operating in a high supply market and a low supply market.

When we look at properties and see ones that are exactly where we thought they would be, and ones that are behind, the common denominator is often that supply equation. Now, if you bought a deal in 2018, 2019, you probably had a good view into what supply would be two years out. But five, six, seven years in, there’s a lot of projects that were started and delivered that nobody ever thought about or thought would come into existence, so, supply that you couldn’t account for. With the information that we have today, we can account for that supply and what we know about.

And to go back to my earlier point, everything lasts until it doesn’t, everybody is saying supply has dropped off. Supply is coming down. It’s not expected to pick back up. Well, what if it does? Let’s take that information and look through a lens with which we say, “Hey, where are markets that are performing well? If we look at lease-ups broadly for our development business, what micro locations are leasing up really well? Not just Richmond, Scott’s addition neighborhood, the West End, Midlothian, broadly the south side. If we’re looking at Tennessee, how does Chattanooga compare to Knoxville? And what does the supply story look like?

When we look at the menu of options, the areas that are most appealing to us right now are often lower secondary or tertiary markets. Those gateway Southeastern markets – Tampa, Miami, Atlanta, Dallas, just to name a few – have high supply, and with that high supply, you see muted, negative rent growth that hasn’t alleviated the inflationary pressures and operating expenses (OpEx). Payroll is higher. We’ve got to pay our folks more. Their cost of living is higher, very, very easy to understand and digest. Your leasing managers, your property managers, they have to live too. And if you can’t afford or pay competitive payroll rates, you can’t operate your asset to this optimal level.

We’ve seen inflation inside of insurance. In many instances, we’ve seen 200 to 300% insurance growth over a two-to-three-year window. You can’t project storms. That’s really unknowable, and to an extent, we know they will happen, but the degree to which they happen and their impact economically, it’s really hard to forecast and account for.

So, with the information that we have today, those secondary and tertiary markets, we think afford the best opportunity for stability, because at the end of the day, our DST investors have broadly won. They’ve been able to defer the tax. They’ve executed an exchange. Louis would say, “They’re well on their way to swapping till they drop.”

But we know that they’re depending on that income. They’re depending on us to perform. And so, as we look at the universe, you’re going to see more Capital Square offerings in secondary and tertiary markets, where there’s just fundamentally less supply and less pressure on rents. We think that will lead to better portfolio performance but also to better investor outcomes in the long run.

A lot of investors look at Capital Square, and they think of us as a multifamily shop. I think that’s a very fair assessment. Multifamily is our bread and butter. It is the preponderance of our portfolio, both on the existing acquisition side but also on the development side. But there are ways to innovate inside of housing. It’s not all created equal.

There’s age-restricted seniors housing, independent living, and one area that’s been of acute focus for us is cottage style, age-restricted housing, single-story homes, one to two bedrooms with their garage, ADA compliant, fixtures, finishes, bathrooms. Really seeking that demographic that is looking to unlock trapped equity inside of their home, to write a singular rent check at the first of every month, and have to think about nothing else. When we look at that performance as an asset class, well, first off, there’s really not a lot of it.

We think we have a special sauce in terms of our ability to source that through a variety of partners across the South and specifically in Texas. But we also think that as we look at that landscape, it’s only going to be a growing segment for investors. Institutional investors are looking for it as well. That should compress pricing. And so in all ways, we think that is a really interesting way to get at housing in a market that has none of the supply headwinds that multifamily has.

Multifamily presents tremendous opportunities broadly. We’ve had softening cap rates. We have markets that are not supplied to the extent that you see in Atlanta or Dallas, and you’re seeing rent growth. Those are really interesting opportunities, but these stable, age-restricted cottage-style communities are an outlier from a performance perspective. The rent growth has been consistent during COVID, after COVID. The operating expense elevations have been needed relative to multifamily and so in all ways, they’ve been performing better the last couple years, and we can think that performance will continue.

And so, while we would hope investors see us as a housing shop, we would hope they see us as exactly that: housing broadly, not just multifamily apartments.

At Capital Square, we like to think we have our finger on the pulse. Markets go up; markets go down. Rents rise; they fall. But at the end of the day, what is going to drive performance is attention to detail, energy, effort and execution. And every day, when we wake up, we bring that to the table under the guise of trying to execute successful outcomes for investors, their advisors and their families.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against l

The post Q2 2026 Investment Insight: Navigating Market Realities & Unlocking Real Estate Opportunities appeared first on Capital Square - Raising capital, buildings and expectations.

Multifamily real estate continues to stand out as one of the most resilient, income-producing asset classes in the U.S., supported by durable demand, structural housing undersupply and institutional-quality cash flow characteristics.

Passive Wealth Creation

Professionally managed multifamily investments offer:

• Consistent income distributions
• Tax advantages (e.g., depreciation, cost segregation and bonus depreciation)
• Access to institutional-quality real estate without active management

Structural Demand Tailwinds

• The U.S. faces a multi-million-unit housing shortage, with approximately 3.6 million homes needed to meet demand.[1]
• Demographics remain highly supportive:
  • Millennials and Gen Z are entering peak renting years.
  • High home prices and mortgage rates are delaying homeownership.[2]
• Multifamily demand remains strong, with positive net absorption and continued renter household formation.

Note: Estimates for 2020 and 2021 are omitted due to data collection issues experienced during the pandemic.

Source: “2025 State of the Nation’s Housing,” Joint Center for Housing Studies of Harvard University, 2025.

Potential for Resilient Income & Predictable Cash Flow

• Residential assets feature the lowest volatility and nearly the highest average annualized returns of the majority of property types.[3]
• Rental housing benefits from:
  • Short lease durations, meaning an ability to reset rents to market
  • A diversified tenant base, meaning reduced occupancy risk
• Absorption is expected to overtake new deliveries in 2026, setting the stage for rent growth.[4]

Source: “United States Multi-Family National Report,” CoStar, 2026.

Institutional Stability

• Multifamily is a demonstration of “essential-use demand.” Housing is non-discretionary.
• The construction pipeline has contracted approximately 50%, from 1.18 million units under construction in Q1 2023 to 578,000 units under construction in Q4 2025.[5]
• These dynamics support long-term occupancy and pricing power.

The Bottom Line

Multifamily real estate investment offers a compelling combination of structural demand, resilient cash flow and operational upside, positioning it as a powerful vehicle for long-term, passive wealth creation in an uncertain economic environment.

Explore Capital Square’s latest multifamily offerings and discover how you can invest in income-producing real estate designed for long-term performance.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

[1] Peter Linneman, “The Linneman Letter,” Volume 25: Issue 1, Spring 2025.

[2] CBRE Research, CBRE Econometric Advisors, U.S. Census Bureau, Realtor.com®, FHFA, NAR, Oxford Economics, Q2 2025.

[3] “Annual Returns by Property Sector and Subsector: 1994 – 2025,” NAREIT, 2026.

[4] “United States Multi-Family National Report,” CoStar, 2026.

[5] Ibid.

The post Why Multifamily Remains a Core Investment Strategy appeared first on Capital Square - Raising capital, buildings and expectations.

Historically known for ranching, agriculture and small tourism-driven towns, the region has undergone significant transformation over the past several decades as Austin and San Antonio have expanded. Today, the corridor connecting the two cities along Interstate-35 is evolving into one of the most dynamic growth regions in the United States. The Austin–San Antonio corridor is projected to reach between 6 and 7 million residents by 2030, creating a powerful economic and demographic engine across Central Texas.[1]

That growth is especially visible in cities such as New Braunfels, which has evolved from a historic river town into one of the fastest-growing cities in the United States. The city’s population grew from approximately 70,000 residents in 2017 to nearly 93,000 by 2022, and estimates suggest the population could exceed 128,000 by 2026, representing dramatic expansion within less than a decade.[2]^, [3] Positioned along the I-35 corridor between Austin and San Antonio, New Braunfels continues to attract new residents seeking a high quality of life, relative affordability and proximity to major employment centers.

Further west, Fredericksburg represents another example of the Hill Country’s economic evolution. Long known for its German heritage and small-town charm, Fredericksburg has become the center of Texas Wine Country, growing from just three wineries in the 1970s to more than 80 today and attracting more than three million visitors annually.[4] This tourism growth has fueled broader investment in hospitality, retail and residential development across the surrounding region.

These economic and population trends align closely with rising demand for active-adult housing. As baby boomers continue to retire and relocate to lifestyle-oriented destinations, communities that offer low-maintenance homes, wellness amenities and social engagement are becoming increasingly attractive. The Hill Country’s wineries, golf courses, outdoor recreation and mild climate make it particularly appealing to retirees seeking an active lifestyle.

Taken together, the region’s strategic location between two booming metros, its decades-long population expansion and its growing lifestyle appeal create a compelling investment case. For real estate investors seeking long-term demographic tailwinds and high-growth markets, active-adult communities in Texas Hill Country represent a particularly attractive opportunity in 2026.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.

[1]  The Greater Austin-San Antonio Corridor Council, TheCorridor.org/about – Accessed March 2026.

[2]  Eric Weilbacker, “New data shows population, median income growing in the New Braunfels area,” CommunityImpact.com, December 13, 2023 – Accessed March 2026.

[3] “New Braunfels,” WorldPopulationReview.com – Accessed March 2026.

[4] Eater.com, May 22, 2025 – Accessed March 2026.

The post Texas Hill Country’s Growth Story: A Rising Opportunity for Active-Adult Real Estate appeared first on Capital Square - Raising capital, buildings and expectations.

• proven markets,
• proven tracts and
• proven execution.

If you’re considering a Qualified Opportunity Zone Fund (QOF) investment, 2026 offers potentially significant strategic advantages.

Why Invest in a QOF in 2026?

1. Today’s Fair Market Value may be tomorrow’s missed advantage.

The QOF statute requires taxation on the investment that was sold based on the fair market value (FMV) of the investment on December 31, 2026. With that date approaching, we are in a short window to obtain a valuation discount that will materially reduce taxable gain.

Specifically, between now and December 31, 2026, investors have the opportunity to capture IRC-mandated valuation discounts by investing in QOFs holding assets still under construction at year-end 2026. Depending on individual circumstances, the tax value derived from the FMV discount may surpass the QOF-related tax incentives projected to be available in 2027 under the OBBB framework that establishes OZ 2.0 rules.

Put simply: the December 31, 2026 valuation discount is a strategic opportunity to reduce taxable gain.

2. Current opportunity zone tracts are proven. Future tracts are speculative.

The opportunity zone map we know today includes areas with demonstrated investor outcomes, infrastructure momentum and real market data — not theory.

A clear example is Scott’s Addition in Richmond, Virginia: a nationally recognized transformation story where opportunity zone investment has aligned with strong demographic trends, development activity and sustained demand.

By contrast, future opportunity zone legislation may introduce:

• new tract designations with unknown fundamentals
• unproven market performance
• uncertain timelines and implementation risk

In short: today’s tracts have track records. Future tracts have hopes and prayers.

3. Powerful tax advantages remain a cornerstone of QOF strategy.

Qualified Opportunity Zone Funds provide investors with:

• The potential for tax deferral on the investment that was sold and
• The potential for full exclusion of capital gains tax on appreciation, subject to holding periods and program requirements.

These benefits are a primary reason investors use QOF strategies to pursue long-term wealth creation while improving after-tax outcomes.

The Bottom Line

We believe the best opportunity zone outcomes are driven by timing, tract quality and execution.

In 2026, investors have access to:

• today’s market entry points
• known tracts with real performance history
• meaningful tax advantages and
• a strategic opportunity to grow wealth — and business — more efficiently.

Capital Square is committed to delivering institutional-quality real estate investment solutions, including Qualified Opportunity Zone Fund strategies, with disciplined underwriting and long-term alignment.

Is it time for you to take the next step?

Connect with Capital Square to explore how a Qualified Opportunity Zone Fund may fit into your tax strategy, portfolio objectives and long-term planning.

Disclosure

Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

The post A Window of Opportunity: Qualified Opportunity Zone Funds in 2026 appeared first on Capital Square - Raising capital, buildings and expectations.

(If you missed it, discover part one.)

Key Moments:

• Who are the BFR market participants? (0:00)
• What is Capital Square’s build-for-rent track record? (jump to 1:27)
• What have been the agency financing trends with BFR? (jump to 3:29)
• What are the synergies between managing multifamily and managing Build for Rent? (jump to 6:28)
• What are the latest build-for-rent metrics around supply and demand? (jump to 8:38)
• What’s next for Capital Square in the BFR space? (jump to 10:55)

Approximate Transcript:

Jorge: Let’s talk about capital markets for a little bit. We are focused on providing this type of investment in a build-for-rent (BFR) property, an institutional quality asset, to retail investors – people that otherwise wouldn’t have that ability. Who else is out there? Who are we seeing in the space? Who are the market participants? And when we look at our own portfolio, when we think about an exit strategy, what’s the buyer pool look like for us? What’s our potential for success if we want to go full cycle with a property?

Bennie: There’s been a lot of great institutional interest in Build for Rent, both from the equity perspective and the debt side. On the equity side, traditional multifamily developers, they’re experts in dealing with zoning entitlements, navigating difficult situations with the city governments, putting the shovel in the ground, and building big, beautiful buildings in tandem with architects and general contractors (GCs), and so they’re taking their expertise and moving it into this asset class. Sunstone Two Tree is a great partner of ours, and they are very well respected, best-in-class in what they do, both on the multifamily side and now on the Build for Rent side, too.

In terms of real estate investors, as we mentioned, we’re one of them. Capital Square launched our build-for-rent platform three years ago. In the course of that time, we’ve been very busy. We’ve closed over a dozen deals within this space, over half a billion dollars of gross asset value (GAV) across transaction types: stabilized, forward and development.

And other participants, such as Blackstone, have put a lot of money in here. In 2024, they took Tricon private with a big build-for-rent pipeline behind it for $3.5 billion. Brookfield acquired Divvy Homes earlier in 2025 for $1.5 billion, where they bought the platform and the underlying 7,000 homes as well. And so, there’s a lot of very interested equity participants in the build-for-rent space.

On the debt side, there’s tremendous amount of interest here. And because of this, spreads are actually at record lows. It’s very competitive. There’s a lot of powder out there for debt providers, and this is bifurcated between agencies, insurance companies and private debt funds too.

On the agency side, both from Fannie and from Freddie, they have a cap of $150 billion a year that they can allocate to this particular asset class. So that’s a lot of money.

And from the insurance side, they always have plenty of money to put to work and put in safe assets as they exercise their asset liability management and debt funds. You’ve probably heard the phrase “the golden age of private credit,” right? And that’s because they’ve raised a tremendous amount of money as base rates went from 0% to over 5% and they need to put that money to work. It’s extremely competitive. When we were raising the [mezzanine loan] last year, we got seven term sheets. It’s very competitive. A lot of participants in this asset class.   

I know that Capital Square is a big consumer of agency financing. What trends have you seen there? Particularly, recently, we closed a deal two months ago, and we closed that at max leverage at 100 basis points, spread over the 10-year treasury. What trends have you seen from being a participant in the agency programs?

Jorge: We’ve done over $2 billion in agency debt over our lifetime, mostly with conventional multifamily, and as you noted, we closed a recent property with a Fannie Mae loan with terms that were pretty much comparable to conventional multifamily. The trend I’ve seen is that this is less of a buzzword asset class now, and people just have a real understanding of the nuances and the differences but in a very positive way that has driven the agencies more toward the product.

I think several years ago, there were more question marks. The trends have now allowed them to just underwrite those BFR deals, again, a lot more like a multifamily, a conventional deal. They have a better understanding. We have better track record. We have performance metrics that we can point to. And now those limitations are a lot more specific, like they won’t lend to a scattered site property, but that’s okay with us, because that’s not our focus. That wouldn’t really work for what we do – primarily on the acquisition side, on the stabilized size – which is to offer these properties for people looking for a 1031 exchange. That net scattered site portfolio just wouldn’t work from an identification, from an exchange perspective. But more importantly, it allows us to tap into agency debt, which typically is the best fit for what we do under the DST platform to provide that 1031 exchange solution.

So, very positive from our side, and we look to do a lot more in the future – tapping into the best debt available, the lowest spreads available – so that our investors can benefit from that high-quality debt and a high-quality real estate asset class.

Bennie: We’re also getting really great construction financing. At Capital Square, we’re active on the development side for Build for Rent too. So, what we do there: we love to build assets that we can’t necessarily acquire, and we’re also being part of the solution to the housing crisis that we see in the U.S.

The developments that we create are best-in-class in terms of the amenities, that build quality. It’s got the swimming pool, the fitness center; it’s got everything that you can ask for, which is really great for our resident profile.

Speaking of those residents, Capital Square is a big investor in multifamily, and three years ago, we launched a property management platform called Capital Square Living or CSL. What synergies do you see between managing multifamily and Build for Rent? Is it really different, or can the multifamily operators really know how to operate Build for Rent?

Jorge: Same, same, but different, right?

I think there are a lot of lessons to learn when you don’t know the product very well, but overall, you take best practices from other operators, and you adjust. It’s understanding the demographic and understanding what residents truly want out of their experience. It can be perhaps a little more hands-on – making sure that the service provided and the upkeep of the property is there – because we want residents to treat the home that they’re renting from us like they own it. That’s going to give us the best financial results. So, it’s paying attention to those nuances, to the demographic, and responding accordingly.

Bennie: When I entered the real estate space in 2021, it was questionable whether Build for Rent would stay as an asset class. And over the last four or five years, I think it’s really tremendous in terms of how it’s evolved as an asset class, even through the brokerage networks.

A lot of the interactions that we have with the big brokers, like CBRE or JLL, it’s really folded into their multifamily space. A lot of investors and a lot of brokers are viewing BFR almost as a cousin or sub-asset class within traditional multifamily. It’s very similar in terms of how it operates, to a certain extent, and you see multifamily operators and property managers being property managers for Build for Rent too, such as Greystar and CSL, which is doing an excellent job for the products in our portfolio. But it’s really great to see the evolution of that asset class over such a short period of time.

Jorge: Agreed. And again, the theory is being proved correct that this is a great product: a great solution for the housing crisis that we have in the U.S. but also, at the same time, lending itself to a great investment property as well.

Bennie: As we look forward, I think that a lot of supply has come, and it’s being absorbed extremely well. When we look when base rates were at zero post-COVID, it really fueled the boom for building. You had peak starts right after COVID, and when you compare those starts relative to today, that’s fallen 50%. Compared to last year, it’s fallen by over 20%. All the deliveries that are happening, they’re being absorbed because of the tremendous demand that we’re seeing in the types of markets that we’re investing in.

Going forward, what do you think is going to happen as it relates to rent growth and occupancy, very important metrics for Build for Rent?

Jorge: I think that’s a very good point on the supply side. On the demand side, we obviously don’t know what interest rates are going to do, but the truth is – or at least the expectation is – we’re not going back to zero, right? So that main driver for renter demand in the BFR space, of that delta between owning versus renting a home, we don’t see it coming back to the historical norm anytime soon. We expect to continue to see it elevated. I think that will continue to drive the demand.

And again, it’s a new product. It’s the quality that you’re looking for. It’s the home-like product that you’re looking for, if you are a young professional with a kid on the way, and you want a little more separation from your neighbor; you want a yard; you want a good school. Whatever those reasons might be, it just means more demand for this asset class, and when the supply side stabilizes, I think that bodes really well for the future: higher occupancies, being able to lease up properties faster and continue in a rent-growth environment going forward. So, I think the outlook is really good for this asset class.

Bennie: That’s great. When you see the Capital Square portfolio today, it’s tremendous what the firm has done over such a short period of time. What are you most excited about in the build-for-rent space? And where do you see Capital Square moving forward as it relates to the asset class?

Jorge: Scale. I think the one of the few challenges with Build for Rent is that they tend to be smaller properties. In the conventional multifamily side, our average property is over 250 units, probably close to 300 units. It’s easier to manage that on site when you have that many units to make up for the cost of staffing the property. One of the challenges we see is with a 100-unit property, it becomes more difficult to operate. You can’t have one person alone working an office for a property. It just doesn’t work because they need time off; they need vacation.

So typically, a larger property allows you to operate more efficiently from a staffing standpoint. On a build-for-rent property, call it between 50 and 100 units, which has been historically our acquisitions, it’s a little bit harder to get those efficiencies. But with our management company scaling, we’re able to share some staff, and as we continue to grow the portfolio, we’re going to see more opportunities to rein in those costs even further, and again, continue to gain experience, not just operating those properties, but gaining from some of the scale that we’ll have as we build out the portfolio in the markets that we talked about, where we continue to see very positive supply and demand trends and where we want to grow.

Bennie: Well, it’s been a really great conversation. I definitely learned a lot from you, and it’s been really tremendous to see what Capital Square has done in such a short period of time in a nascent asset class.

With all the tremendous tailwinds that we’re seeing from a fundamental perspective, it’s going to be really exciting to see what Capital Square will continue to do in the future for Build for Rent.

Jorge: Likewise, and I’m really excited for what the future holds.

The future of Build for Rent starts here.

At Capital Square, we believe the Build for Rent asset class is positioned for growth. Discover how our open BFR offerings might fit your 2026 goals. Contact our team today.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

The post Q1 2026 Investment Insight: Build for Rent’s Acceleration (part 2) appeared first on Capital Square - Raising capital, buildings and expectations.

Across investing, development and management operations, the message was consistent: success will favor groups that understand submarket-level dynamics, apply thoughtful underwriting and execute differentiated strategies rather than relying on broad market assumptions.

The Capital Square team’s biggest NMHC takeaways:

• In the immediate post-COVID years (2021-2022), many firms underwrote real estate with a broad brush. Today, the industry has shifted toward more disciplined, asset-level underwriting, recognizing meaningful differences across product types, asset classes and market fundamentals that increasingly diverge by location.
• Regarding capital markets, transactions for premium assets continue to trade at relatively low cap rates, as investors pay up for quality and rely on net operating income (NOI) growth to drive returns.
• Debt capital remains abundant and is ready to be deployed.
  • Blackstone, for example, aims to double its funding activity in 2026 versus 2025.
  • Many investors facing challenges have been able to recapitalize and refinance their assets due to ample liquidity in debt markets, avoiding distressed sales.
• Not everyone is familiar with Opportunity Zones (OZs), which seems surprising given they have become a $100 billion+ industry, but those who are familiar recognize the value of pairing up land sellers with experienced OZ sponsors to drive business – with unique advantages in 2026. 
• Single-family rental (SFR) aggregators continue to expand their focus on Build for Rent (BFR).
  • As examples, Invitation Homes Inc. (INVH) acquired ResiBuilt Homes, LLC in January 2026 to internalize BFR construction.
  • In 2024, Blackrock took Tricon private and planned to complete a $1 billion single-family home development pipeline.
• To get new developments going in 2026, firms have to believe in a growth story or have a nuanced business plan that differentiates their development.
  • There will be compelling development opportunities for well-located sites without messy entitlements and landowners who are flexible or motivated.
• Absorption of apartment units in 2025 was the third highest annual absorption rate since 2000.
• Lower consumer confidence is affecting household formation, but a higher percentage of households are likely to continue renting. 
  • Significant rental demand is coming from Baby Boomers who are re-entering the housing market and young adults who are remaining renters for longer – both trends which affect demand for specific rental product types.
• Many tempering expectations linger around rent growth in 2026, but there’s consensus that the impact of rental unit absorption and the severe drop-off in multifamily construction starts over the last couple years will be felt sooner rather than later.
  • Some markets are much farther along than others in the process of absorbing new supply. Differences in market dynamics will become more apparent in 2026.  
  • For example, Atlanta was cited as being toward the end of the supply/absorption wave, while Nashville is still hovering around the peak of new deliveries.
• Concessions remain elevated across major markets as owners work to absorb new supply.
  • The process of absorbing new units and burning off the rental concessions needed to fill the new supply may still take significant time. Although the market feels more stable, operators and investors need to be patient as they wait for more material growth to return to the market.
• Renters have the ability to move for lower in-place rents, so it’s becoming increasingly important to engage the renter throughout the entire lifecycle and begin working the renewal immediately upon lease signing.
  • Data shows residents who feel a sense of belonging through events and multiple touchpoints throughout their resident journey are more likely to renew.
  • Although renewal offers cannot be generated more than 90 days prior to lease expiration, all renewal efforts should be made on a consistent basis. 
• Property performance has been muted over the last few years, so once improvements appear in rent growth and occupancy (maybe by the end of 2026), investors should react aggressively to take advantage of the pricing discounts to peak.
• Capital Square’s portfolio is poised to do well in the coming 12 months as our heavier concentrations are outside of the markets that are still fighting a glut of new supply.

Wider Economic Discussions:

• From a macroeconomic perspective, job growth is the big focus amongst economists along with the impact of immigration policy.
  • Across the country, there was little job growth in the second half of 2025, although performance of some sectors and in some markets was better than average. 
  • The low-hire/low-fire labor market is affecting recent college grads and white-collar employees disproportionately.
• Half of recent economic growth is attributed to data center construction, but data centers require relatively few staff to operate once complete. 
• Inflation is now settling in the mid to high 2% range, higher than we became accustomed to prior to COVID. 
• Shifting tariff and immigration policies have created uncertainty that affects business investments and R&D. 
• Platforms are increasingly incorporating artificial intelligence (AI) across portfolios to generate deeper insights into property management, asset management and investments.

Looking ahead, as supply pressures ease in many markets and capital markets remain supportive, opportunities are emerging to acquire and develop well-located assets at compelling bases, particularly for sponsors with flexible capital and operational expertise. Continued advances in technology and data-driven asset management further enhance the ability to drive performance through the cycle.

In this environment, Capital Square’s integrated platform — focused on disciplined investment, differentiated development and hands-on management — positions the firm well to capitalize on improving fundamentals and long-term value creation as the market normalizes.

Disclosure

Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative and illiquid. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

The post NMHC 2026 Highlights: A Market Defined by Discipline and Opportunity appeared first on Capital Square - Raising capital, buildings and expectations.

This Q1 2026 investment insight video – a behind-the-scenes discussion between Capital Square’s executive vice president of acquisitions, Jorge Figueiredo, and Capital Square’s vice president of acquisitions, Bennie Su – explores these questions and so much more.

Key Moments:

• What is Build for Rent (BFR)? (0:00)
• What is the origin of Build for Rent as an asset class? (jump to 0:54)
• What is the cost to own versus the cost to rent right now? (jump to 2:38)
• What kind of renter is interested in Build to Rent? (jump to 4:46)
• How does Build for Rent fit into Capital Square’s investment thesis? (jump to 5:57)
• How has Build for Rent performed as an asset class relative to other property types that Capital Square manages? (jump to 7:04)

Approximate Transcript:

Jorge Figueiredo: So, at Capital Square, we’re firm believers in what we call “BFR,” or “Build for Rent” – some people call it “Build to Rent” – but this is a very specific asset class that we’ve added to our offerings in our portfolio. What is Built for Rent? What is BFR?

Bennie Su: It’s a good question. Built for Rent is an emerging asset class. It started really around 10 years ago, and very simply put, it’s a community of single-family homes that are purposely built for rent. It actually serves as one of the many solutions to the housing crisis that the U.S. faces today.

Jorge Figueiredo: Now, that’s a good description, but how did we get here? Why does BFR exist? 

Bennie Su: You probably have seen it in the news. The U.S. has housing shortage of 3 to 5 million homes when you compare the number of available homes out there relative to the number of households in the U.S. This really stemmed from the Great Financial Crisis over 15 years ago. A lot of the developers and investors were really scarred by U.S. housing as it was an eye of the storm of the Great Financial Crisis.

When you look at the starts, before the Crisis, it was around 1.5 million homes being built per year, and after, it’s a really stark drop – around 50% each year – to around 700,000 homes built each year. So, when you’re under-building every single year over a 15-year period, that problem really compounds on itself.

Today, we’re building a lot of homes in the U.S. through a lot of really great public builders, private builders, too. But at the same time, we’re also losing homes. There’s a lot of aged inventory that’s neglected, not being maintained, and those are being demolished. So, for the last 10 years, we’ve actually lost a million homes. So, there’s really a big challenge, from a supply perspective.

And from the demand perspective, the U.S. has been a great beneficiary of population growth from an organic perspective – converts and household formation and in-migration. When you juxtapose very strong demand with not a lot of supply, you have a big supply demand gap. That’s why you see home prices at record highs.

The average price to buy a home right now is half a million dollars.  I can’t really believe that. But not only is it half a million dollars to buy the house, as a homeowner, you have to maintain the house, and the cost of maintaining the house is extremely high too. As home values go up, so do your property taxes, insurance, and you’re the expert on that. We can talk about that. [Insurance has] gone up because of the aftermath of the tragedies from the storms that we’ve seen across the U.S. – in Florida, Texas and the Carolinas. Mortgage interest rates are extremely high too. Thirty-year fixed is anywhere from 6 to 7% right now. And the cost to just maintain a house – the cost of labor and the materials – are all really expensive. It’s just expensive to buy a house, so Build for Rent is a solution to address that, because right now, the cost to own is so much higher than the cost to rent.

Whenever we purchase or develop here at Capital Square, we take a look at that cost-to-own versus cost-to-rent analysis. From what we’ve seen over the last few years, every single month, it costs $700 or $1,000 more a month to own versus rent. This math is what drives a lot of demand into this emerging asset class.

Jorge Figueiredo: And that’s not really the historic norm. Over the last 30 years or more, that delta between owning versus renting just hasn’t been that significant. It typically is more expensive to own versus to rent, but I think as we look at today – $700 to $1,000 dollars more expensive to own versus rent in most markets where we operate – that is a real departure from the historical norm.

Bennie Su: That departure is around four times the average historically, so it’s definitely very stark. It’s a huge dollar amount in everyday Americans’ pockets. Build for Rent serves to solve that problem.

Jorge Figueiredo: Sounds like this asset class serves as a solution to a lot of that demographic looking for BFR properties to live in or would-be first-time home buyers, right? People who are looking to form a household – they might be young professionals with a job, perhaps a kid or kid on the way; they’re looking for more space; they’re looking for a yard; they’re looking for a different style of living. BFR just gives them a better solution.

What I think, in turn, is one of the big pros of this asset class is that it often has a really quality tenant. It’s not a transient, super young professional. It’s someone who’s a little more established, looking to rent for a little longer, probably looking for good schools, which helps us define our target markets a little better. That creates a more stable asset with less turnover, better quality tenants, and a lot less bad debt in relation to conventional multifamily.

One of the many reasons why we like this asset class is its strong tenant base and the strong operations that it comes with – it’s even beyond the strong supply and demand story – but from an investment thesis standpoint, how has that translated for us?

Here we are. The story is starting to prove itself. So, what have we done here at Capital Square that shows that we’re paying attention?

Bennie Su: We’ve been really excited to launch the Build for Rent platform. It’s been three years since we’ve launched, and since then, we’ve been very busy. So far, we’ve closed over half a billion dollars of acquisitions and development all across the U.S. We’ve done almost a dozen transactions across stabilized acquisitions and forward acquisitions – which are when you’re buying empty homes from a home builder, and you’re taking up the lease-up risk – and we’re doing ground up development too. You know, over the last three years, we’ve been able to do a lot of transactions across the country.

How have you seen Build for Rent perform as an asset class relative to the myriad of property types that Capital Square manages?

Jorge Figueiredo: Yeah, sure. So strong performance overall. Obviously, over the last three years, any real estate operator that hasn’t had challenges is probably lying to themselves or someone else. There are specific markets where supply and demand has been a little bit off balance and occupancy. We’ve started to see a lot more concessions. But in relation to conventional multifamily, we feel still really strongly about performance in the BFR space.

The specific type of demographic in BFR is less susceptible to downturns, and they’re there for the longer term, which translates to stronger occupancies in a lot of the markets that we’re in. While we’ve seen increases in insurance and maintenance costs and things like that that you’ve alluded to, that has actually helped strengthen our ability to lease, because that continues to push people away from owning a home – and a lot of times we’re seeing renters by choice.

So those operational differences – while some can be a little subtle, some a little more pronounced – I really think they speak in favor of, again, a more stable asset class that is there for the long haul, and residents are looking for longer term solutions.

Bennie Su: Build for Rent, as we’ve mentioned, is a very nascent asset class. There’s only 350,000 units so far in the U.S. When you compare that to multifamily, with 24 million units, it’s less than 2%, right? And so, it’s very new.

In terms of the market concentrations of where it is, of that 350,000, a quarter of it sits within Phoenix, the birthplace of Built for Rent, and in Atlanta. Then the other quarter of it is focused in markets that are very business friendly, low cost of living, and very high quality of life – states like Texas, the Carolinas. When you think of cities – like Houston, Dallas, Austin, Raleigh and Charlotte – these are really focal points for Build for Rent as an asset class. We really spend time investing and putting capital to work there.

Jorge Figueiredo: Yes, and [these locations are] well aligned with our macro strategies of where to buy real estate, back to the supply and demand dynamics that drive our thesis, typically. Those markets are markets that we feel strongly about, where demand is outpacing supply and warmer climates, less regulation. For all those reasons, there are geographies that we target, so well aligned there.

[Continue watching part 2 of this conversation.]

Is your portfolio built for the renter of the future?

At Capital Square, we believe the Build for Rent asset class is positioned for growth. Discover how our open BFR offerings might fit your 2026 goals. Contact our team today.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

The post Q1 2026 Investment Insight: Build for Rent’s Acceleration (part 1) appeared first on Capital Square - Raising capital, buildings and expectations.

As 2025 comes to a close, tax-advantaged real estate investing has solidified its position as a core strategy for individuals seeking predictable income, resilience against inflation and long-term tax optimization. This year underscored a truth that industry leaders have long emphasized: tax planning and real estate fundamentals are deeply interconnected, and when aligned, they create powerful opportunities for wealth preservation and growth.

Throughout 2025, demographic and economic shifts reaffirmed the strength of high-growth U.S. markets. Population inflows, job creation and persistent housing shortages fueled demand for both conventional multifamily and build-for-rent (BFR) communities. Investors increasingly turned to Delaware statutory trusts (DSTs) for 1031 exchanges, qualified opportunity zone developments and tax-efficient programs designed to balance stability with wholistic portfolio diversification.

Across industry roundtables, interviews and thought-leadership discussions this year, several themes consistently emerged. Investors are prioritizing quality underwriting, recognizing that disciplined market selection, conservative leverage and strong operational oversight remain the cornerstone of durable performance. In parallel, tax strategy is taking on a more prominent role in investment decision-making, with many leveraging exchange structures and deferral mechanisms not just for tax savings today but for long-term compounding and estate planning, building legacies for tomorrow.

Looking ahead to 2026, the environment is ripe with both opportunity and evolution. Policymakers are signaling renewed focus on tax reform, making 1031 exchanges and other deferral tools especially relevant. Opportunity Zone projects continue to mature, demonstrating meaningful community impact and solidifying their place in long-term planning. Meanwhile, multifamily demand is expected to remain elevated as supply challenges persist and lifestyle preferences continue to favor professionally managed rental housing. Sun Belt markets especially, long recognized for population growth, economic expansion and business-friendly environments, are forecasted to outperform.

If 2025 was a year of reaffirming fundamental truths, 2026 appears poised to be a year of strategic acceleration – a convergence of innovation, discipline and growth – where tax-advantaged real estate plays an even more prominent role in forward-looking investment portfolios.

Are you ready to enter 2026 with momentum? Contact our experienced team today.

Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative and illiquid.

The post 2025 Year-End Reflection: A Transformational Moment for Tax-Advantaged Real Estate appeared first on Capital Square - Raising capital, buildings and expectations.