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— Distributions from private real estate funds, such as rental income, preferred returns or cash flow events, can be withdrawn tax-free in retirement.*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

In this discussion, three of our firm’s learning and development leaders – Andrea Shaw, Vice President, Learning & Development; Victoria Lennon, Learning Manager; and Steve Wunch, Director, Sales & Leadership Learning – discuss what L&D really means, how it empowers teams, and the initiatives Capital Square is implementing to strengthen talent and support bottom-line results.

Learn how a focused approach to professional growth can help employees and the total firm perform at the highest levels.

Approximate Transcript:

Steve: So, we’re here to talk about my favorite subject, which is learning and development. I’m here with my great partners in learning, Andrea Shaw and Victoria Lennon. Let’s talk a little bit first.

You know, learning and development can be a bit ethereal. People kind of don’t really put their fingers on what it all entails, so for someone who’s watching this, hearing about learning and development in the multifamily space for the first time, how would you guys define what it is that you do and why it’s important to the business?

Andrea: Well, we do what we do because of all of the people involved in the business. So yes, we are a business, but there’s a lot of people that make it work and help it either be successful or not. And so, the more we get the people what it is that they need to be successful on a daily basis, the more successful the business will be.

The more we can tie those things together, the better off everybody is, because they feel like they’re getting what they need to be successful, and they in turn then treat their customers in that way, start building relationships with their vendors in that way, and help us grow not just our culture but our business, and things become more profitable in turn as well.

The more success we can have individually, the more success we have as a team. I think people feel that, and there’s something a little different about feeling a certain way, feeling like you have somebody who’s invested in you when you’re going to work, versus just feeling like you’re going to work for a paycheck.

Steve: Right. Can you tell me a little bit about your roles and how they’re different? Because I know, Andrea, you’re kind of spearheading a global approach to learning, not just for Capital Square Living but also for the Capital Square organization. But Victoria, I want people to understand what your role is and how you play in the learning collaboration that happens between the two of you.

Andrea: Okay, so I’ll go ahead and start, and then I’ll pass it over to you.

I try to take a look at what the organization needs as a whole, and then say, how does that differ from department to department? And then, further from that, how does that trickle down to each of the individual job roles? How can we create programs that can benefit everybody within a particular either department or job role, and be able to develop programs that can appeal to the masses in those areas? Also building our culture, building things like rewards and recognition.

Right now, a big initiative that we’re working through is performance management, which is part of the performance review process, goal setting, and helping people be able to have an aligned vision. So larger scale projects that are either organization-wide or a larger appeal based on each department or particular job role. That’s where Victoria gets into the more granular pieces.

Victoria: So yes, I take more of a granular approach, like she said, on some of the tasks. We definitely worked very closely when we built our “Rise” onboarding program [at Capital Square Living], and I now manage the majority of that. But in addition, some of these large-scale goals that we have, they start on a granular level, such as policy and procedures. I spearhead a lot of our [standard operating procedures] or SOP development. That doesn’t mean I create them, but it means that I’m getting all of the parties in the room that need to have a role in creating policies and procedures, so it’s not made in a bubble, and we’re truly seeing the whole picture.

Then once we build it out with the experts in whatever policy we’re working on, we can then look and say, “Okay, let’s bring in that training element.” Because it’s great to write a policy, but if we don’t train people in what that policy and procedure is, it’s not going to be effective.

Something very unique to Capital Square, that I love, is that the policy is starting from the learning and development side, because again, we have to train people in what we want them to do in order for them to be successful.

The data shows that training people, investing in them, having good onboarding, having a good first experience when they start at a company, that retains people. Ultimately that drives the business forward, because you’re not having to spend as much money bringing new people in.

When you look outside of the cultural aspect, if you just look at the revenue side of it, the business side of it — which is important to point out to some leaders who maintain this as their driving force — I think it’s important to see that Learning and Development does bring a revenue saving aspect. Sometimes that’s hard to see, because if we’re doing our job right, you’ll never see a loss in revenue. But when it’s not done right, you do see it. That’s why it really should be at the forefront in any business.

Steve: I love that.

Andrea: And the great thing is it’s still not where it’s going to be. We’re continuing to build this out because we have opportunity to continue to make it better. And we know that making somebody’s first impression of working here a powerful one, a great one, a memorable one, is going to continue to be important.

As we continue this journey of building out these different kinds of elements and offshoots, we’re going to continue to find things that we can do better. Bringing in additional support teams is one of them. Refining what it looks like physically when somebody comes into the office is really important. Figuring out how there’s nuances between different job roles and departments and what that will look like.

We’re excited about continuing to make this great as we find opportunities to continue to do that.

Steve: And it’s a snapshot of learning, because learning is always changing and growing and reiterating, and that’s exactly what you guys are doing in your process.

Andrea: Absolutely. What’s great about the data is that we see that it’s working. So many people investing their time and resources into this is paying off. The more we do that, we’re going to continue to see those numbers show us that as well, and that’s an important thing for us also: being able to really measure our success, to say, “Is this thing that we’re doing helping?”

Steve: Which is really exciting, and this global approach to learning and development, I think is going to be really full of wins for all of the folks that are within the organization, regardless of which side of the table they sit on, whether it’s Capital Square or Capital Square Living. It just really paints a broader picture and gives everybody an idea of what is possible. That paints the picture for a very bright and happy future.

Victoria: It also helps growth. When you have to bring somebody in from the outside, you now have to teach them all of the history that has gone into it.

Steve: Like starting from scratch.

Andrea: Yes, they come with great knowledge from where they come from, but they don’t know the journey that has led to where you are. So, when you’re able to attain someone and have them grow into a new role, they see the journey. They’re going to see, “Oh, well, Capital Square has done all this. That’s why we’re here.”

Sometimes it takes time for people to learn that, and that’s really important when building the future, to see where you’ve been, so that you don’t make the same mistakes again, and you have a better understanding of the plans moving forward.

Andrea: I love the idea of helping our team members build that legacy. We’re able to help them continue building their own legacy here at Capital Square, and I think with this global approach, it allows for us to more seamlessly see everybody as Capital Square team members and just help them be able to connect the dots better about who does what and how they can best work together.

We have the opportunity to really connect with human beings, which isn’t as common anymore these days. I think that’s such a beautiful gift that we’re able to have in our job roles, but also to be able to highlight that our team members have the ability to make an impact on people’s lives in a really great way.

Steve: 100%.

Across-the-Board Excellence

This is one of our core values at Capital Square. We bring quality, awareness and depth of knowledge to every project and relationship. Our Learning & Development programs are one more example of this value in action.

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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/.

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• 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.

Thank you to everyone who joined us in marking this important milestone for the Richmond community.

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/.

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(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.