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— Distributions from private real estate funds, such as rental income, preferred returns or cash flow events, can be withdrawn tax-free in retirement.*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.

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Held on April 30, 2026, the hospital’s 106th birthday and the third anniversary of the opening of the Children’s Tower, Goodnight Lights once again illuminated the streets around the hospital. Crowds of community supporters far below shined lights upward to young patients watching from their rooms. Patients waved their lights back, creating a powerful interaction of unity and encouragement.

“The night’s energy was something I have never felt before,” said Laura Gomez, Capital Square’s Director of Talent Acquisition. “There was already a sea of lights when we arrived, and we were quickly outfitted with glow sticks, flashlights, hair clips, and more by members of CHoR. I had initially refused a pair of earplugs, but the person handing them out laughed and insisted that they would be needed. She was right. When the 8:45 p.m. struck, the parade of lights and sirens began. It was immediately organized chaos – ambulances, military vehicles, firefighters were everywhere. You’d look up and see helicopters circling the building, shining their spotlight in the windows of the tower. A crowd of pedestrians were shining flashlights, cheering, and dancing the entire time.”

For the children, the moment was simple yet powerful: a reminder that they are supported by an entire community.

“We saw the glimmering lights appear in the windows and suddenly the outlined figures of children and their parents dancing throughout the hospital,” continued Gomez. “One of the firetrucks had a lit-up ladder that firefighters climbed up to wave at the children as well. Even the President of Children’s Hospital of Richmond at VCU, Elias Neujahr, was outside celebrating and hugging people throughout the event. It was truly a remarkable and joyous celebration.”

Capital Square’s long-standing support of the Children’s Hospital becomes even stronger in moments like this. The firm has supported the hospital through a variety of initiatives, including toy drives that brighten holidays for young patients, participating in the annual CHoR Thanksgiving parade, answering the phones during the annual Radiothon to raise critical funds, holding LemonAid fundraisers across the state of Virginia, and even donating royalties from Louis Rogers’ book, Section 1031 Exchanges: How to Swap Till Ya’ Drop, Building Family Wealth While Minimizing Taxes, to benefit children and families receiving care.

Events like Goodnight Lights underscore the power of sustained community engagement. For Capital Square, it is not just about showing up for one evening. It is about celebrating milestones, supporting meaningful initiatives and reinforcing a deep commitment to the health and well-being of Richmond’s children and families.

This is how we answer our rallying cry to be the change needed in the communities where we work, live, build and invest.

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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.

Between February 2025 and February 2026, Capital Square successfully diverted 757 tons of waste from landfills, achieving a 7.7% diversion rate across Capital Square Living-managed properties. This figure represents meaningful progress and also reflects our disciplined, incremental approach to improving operational sustainability at scale.

Breaking down the environmental impact of these efforts demonstrates their significance. Through recycling and waste diversion initiatives, we achieved the equivalent of:

• 9,179 trees saved, supporting carbon sequestration and ecosystem preservation
• 1,299 metric tons of CO₂ equivalent (MTCO₂e) emissions avoided, contributing to reduced greenhouse gas intensity
• 1,413 cubic yards of landfill airspace conserved, extending landfill lifecycle capacity
• 2.38 million gallons of water saved, reinforcing responsible resource utilization
• 823,600 kilowatt-hours of electricity conserved, reducing overall energy demand

These outcomes are not theoretical. They are quantifiable efficiencies that align with our institutional corporate responsibility and sustainability benchmarks.

Performance across our portfolio highlights several standout assets leading these efforts. Rivergate achieved the highest diversion with 202 tons, followed by Promenade at Newnan Crossing and One Riverside, each with 76 tons, Sterling Manor with 74 tons and Farmhaus with 68 tons. These properties demonstrate how localized engagement and operational discipline can scale into portfolio-wide impact.

Importantly, our waste diversion initiatives operate alongside broader sustainability investments, including the expansion of EV charging infrastructure (now 45 EV stations across 25 properties) and real-time energy meter monitoring systems. Together, these programs enhance cost savings and efficiency, advance resident-centric value drivers and position our assets to meet evolving regulatory and investor expectations.

Our investors can see that these results underscore a key principle: sustainability and performance are not mutually exclusive. By embedding collective responsibility into our operating model, Capital Square continues to generate measurable environmental benefits while strengthening asset resilience, reducing operational risk and supporting long-term value creation.

We continually seek new ways to deliver on our “investors first” commitment. Explore more about how our robust corporate responsibility and sustainability strategy drives value and returns for our investors, and also empowers us to operate conscientiously and make a lasting difference for our residents and the local communities we serve.

The post Advancing Collective Responsibility Through Measurable Environmental Impact 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.

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Our collaboration with VCUarts reflects a shared belief: thriving neighborhoods are built not only with strong fundamentals and thoughtful design, but with meaningful connections to the local character that makes a city exceptional.

A partnership built on shared values

Richmond’s creative energy is one of its defining strengths, and the VCU School of the Arts has long been at the center of that ecosystem. The Capital Prize expands opportunities for VCUarts Painting + Printmaking alumni to place their work in a high-visibility setting and help connect artists with new audiences.

Located within Richmond’s Scott’s Addition neighborhood, Chasen is a 352-unit, Class A multifamily community designed to deliver a modern residential experience while contributing to a district known for its momentum. Chasen also carries a unique historical thread: the site’s legacy includes the former N. Chasen & Son paint company, making it a fitting home for a program celebrating contemporary painting and printmaking.

The Capital Prize exhibition is installed across two floors of gallery space within the building, weaving art into the resident and visitor experience, as well as within sight of those walking by on the sidewalks of Scott’s Addition. Thus, in the launch of this prize, only weeks after Chasen first opened its doors to residents, the community has proof that placemaking can be both intentional and inspiring.

The Inaugural Capital Prize

For Round One, Capital Prize exhibition juror Leila Grothe, Operations Manager at Ruth Arts foundation in Milwaukee, selected 20 artworks from 73 submissions, showcasing work by 19 artists in the exhibition. Across all three awardees, a common thread emerges: ambitious ideas executed with discipline, craft and clarity — qualities we recognize and champion across everything we build.

First Prize: Natalia Mejía Murillo — Pillar and Cadence

Natalia Mejía Murillo (M.F.A. ’23) received First Place for Pillar and Cadence (pillar: blown and laser-engraved glass and reclaimed wood, 78” x 6” x 4”; cadence: cast iron and pencil, 12” x 8” x 8”, 2026). Born in Bogotá, Colombia, Murillo is a visual artist whose work explores territory, repetition, trace and time, drawing connections among astronomy, cartography and archaeology. In Pillar and Cadence, those themes translate into a contemplative 3D presentation rooted in transformation that invites viewers to slow down and consider how place, history, technology and creativity shape what we think we know.

Second Prize: Luis Vasquez La Roche — A Few Rules for Predicting the Future

Second Place was awarded to Luis Vasquez La Roche (M.F.A. ’20) for A Few Rules for Predicting the Future (oil paint on wood panel, 48” x 48”, 2025). An artist and educator who resides between Trinidad and Tobago and Virginia, La Roche brings a perspective shaped by movement, lived experience and inquiry. They are a tenure-track Assistant Professor in the Department of Art and Design at George Mason University. The awarded work evokes the complex realities that exist behind the superficial layers of shimmer in modern life, an approach that feels especially resonant in a rapidly changing world.

Third Prize: Eleanor Mahin Thorp — Trölls

Third Place went to Eleanor Mahin Thorp (M.F.A. ’22) for Trölls, (oil on panel, 2024), which stood out for its confident voice and compelling presence, infused with texture, movement and narrative intrigue. Thorp’s practice has earned attention beyond the gallery. Her work has been featured by Yellowstone Public Radio and in outlets including The Washington Post and Anarchist Review of Books. She currently teaches at The City College of New York (CUNY).

Excellence you can experience

The Capital Prize is more than an exhibition; it’s an expression of what we believe real estate can do. When communities transform because of private investment and when development is executed at a high level, a platform is built for community partnerships, cultural investment and shared pride.

At Chasen, residents don’t just rent an apartment. They step into a place shaped by Richmond’s identity, with art that sparks conversation in lobbies, corridors and gathering spaces. That’s across-the-board excellence: collaborative partnerships, elevated design and honored history, while supporting local-grown talent and built environments where people genuinely want to live, play, work and invest.

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 VCUarts × Capital Square: The Capital Prize Comes to Life at Chasen 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.

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.