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

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

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

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

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

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

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

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

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

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

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

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

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

Why Invest in a QOF in 2026?

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

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

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

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

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

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

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

By contrast, future opportunity zone legislation may introduce:

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

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

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

Qualified Opportunity Zone Funds provide investors with:

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

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

The Bottom Line

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

In 2026, investors have access to:

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

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

Is it time for you to take the next step?

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

Disclosure

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

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

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.

When a pioneer of tax-advantaged real estate investments becomes an author then chooses to donate 100% of his royalties to the Children’s Hospital of Richmond at VCU, it’s a moment to dive deeper. In this conversation between founder and co-CEO of Capital Square Louis Rogers and award-winning media personality Jeff Katz, they discuss Rogers’ career, his new book (Section 1031 Exchanges: How to Swap Till Ya’ Drop, Building Family Wealth While Minimizing Taxes) and what building legacies truly means.

For more about Louis Rogers’ book, these additional media resources are available for you:

• “Section 1031 Exchanges: building family wealth while minimizing taxes” (Virginia This Morning, November 5, 2025)
• “Five Questions for Capital Square’s Founder & Co-CEO Louis J. Rogers” (AltsWire, May 28, 2025)
• “Capital Square Founder Louis J. Rogers Authors Definitive Guide on Section 1031 Exchanges” (press release, May 20, 2025)

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 Section 1031 Exchanges and Building Legacies with Louis Rogers & Jeff Katz appeared first on Capital Square - Raising capital, buildings and expectations.

A Qualified Opportunity Zone Fund (QOF) is an investment vehicle designed to encourage long-term investment in economically distressed communities by providing significant tax incentives. Investors can receive substantial tax benefits, including deferral and potential exclusion of capital gains, if they invest in a development within a designated Opportunity Zone (OZ). These zones are low-income census tracts identified by the U.S. Treasury Department, and the goal is to spur economic development and job creation in these underserved areas.

When evaluating the quality of an Opportunity Zone tract, investors should consider several critical factors:

1. Location and Infrastructure: Areas near emerging business centers or planned infrastructure upgrades may provide greater upside potential. Proximity to major transportation hubs, access to utilities and the overall development potential of the surrounding area are essential.
2. Economic and Demographic Trends: Investors should analyze current economic conditions, employment rates and population growth within the zone. Favorable demographic trends, such as an influx of younger, skilled workers or rising median household income, could indicate long-term growth.
3. Risk and Reward: Developing new projects in Opportunity Zones presents additional risks from the development process along with a potential for higher returns. The challenges can be overcome by an experienced development team with an active process for assessing and mitigating risks.  Also, consideration of market volatility, the stability of nearby businesses and local government support for development can help mitigate risk.

Scott’s Addition in Richmond, Virginia as an OZ 1.0 Example

One example of a successful Opportunity Zone transformation is in Scott’s Addition, a once industrial neighborhood in Richmond, Virginia. Over the past decade, the area has experienced a dramatic revitalization, fueled in large part by Opportunity Zone incentives.

The neighborhood, which was historically home to warehouses and manufacturing plants, has become a trendy hub for tech startups, craft breweries, restaurants and apartments. This transformation has not only revitalized the local economy but also attracted significant private investment. However, as Scott’s Addition has grown more attractive to investors and experienced rising property values, it’s likely that it may no longer qualify as an Opportunity Zone in the near future. The neighborhood’s increasing affluence and its shift from a low-income to a more developed area could disqualify it from a future Opportunity Zone designation, when governors reassess opportunity zone tracts in 2026. This shift serves as a reminder for investors to consider how economic improvements could alter the status of an Opportunity Zone over time, affecting long-term investment strategies.

Capital Square has developed numerous mixed-use multifamily properties in Scott’s Addition’s opportunity zone; however, CSRA Opportunity Zone Fund IX may be one of the last opportunities to leverage the benefits of opportunity zone fund legislation within this economically transformed community with favorable location and infrastructure as well as a strong economic forecast for the years ahead – with Richmond, Virginia and its surrounding counties gaining over 52,000 people between 2020 and 2024, and showing no signs of slowing down.[i]

Changes in Opportunity Zone Legislation and Future Designations

In response to feedback from investors and local governments, new Opportunity Zone legislation signed into law in July 2025 will shift the eligibility of certain tracts. Future Opportunity Zones will reflect evolving priorities in urban and rural development, refining requirements of qualifying areas.

Investors must stay informed about both legislative changes and the evolving market landscape to make the best decisions for their portfolios.

Questions? Our team of opportunity zone experts are available to help. Contact us today.

[i] Karri Peifer, “Estimates show over 52,000 people moved to Richmond since 2020” Axios Richmond, February 5, 2025.

Always remember that each property is unique and past performance is no guarantee of future results.

Diversification does not guarantee profits or protect against losses.

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 Reviewing the Quality of an Opportunity Zone Tract: Key Considerations for Investors appeared first on Capital Square - Raising capital, buildings and expectations.

Video highlights include:

• Introduction to 721 Exchanges (jump to 0:39)
• Can an investor keep a DST for the long term? (jump to 1:27)
• What is Capital Square Housing Trust? (jump to 2:11)
• Can an investor invest in a REIT for the long term? (jump to 2:50)
• What are the benefits of an UPREIT? (jump to 3:11)
• Why should interest rates be considered when deciding whether to UPREIT? (jump to 6:47)
• How does Capital Square handle UPREITs differently? (jump to 7:39)
• A recap of DST-to-UPREIT considerations (jump to 8:17)

Essential takeaways:

The investors-first promise of UPREITs into Capital Square Housing Trust means:

• Our investors are never forced into an UPREIT when their DST property reaches maturity, and
• Only strategic, high-performing properties from our DST portfolio are destined for the REIT.

The 1031 to 721 Investor Journey can seem complicated, but at Capital Square, we know education allows for tremendous opportunities.

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.

The post Understanding DST-to-UPREIT Transactions appeared first on Capital Square - Raising capital, buildings and expectations.

Skip to key moments within the video:

• What was the history of Scott’s Addition prior to opportunity zones? (jump to 0:05)
• How have opportunity zones reshaped neighborhoods and cities? (jump to 3:38)
• What has been the economic impact of opportunity zones? (jump to 4:16)

Learn more about opportunity zones:

• “Capital Square’s Opportunity Zone Transformations”
• “An Investment Case for Qualified Opportunity Zones: Program Analysis & Markers of Success”

Discover Capital Square’s newest qualified opportunity zone fund (QOF) offering:

• CSRA Opportunity Zone Fund IX, LLC

Contact the Capital Square team to continue the conversation.

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.

The post Impact Investing via Opportunity Zones: Jay Parsons & Whitson Huffman in Conversation appeared first on Capital Square - Raising capital, buildings and expectations.

Skip to key moments within the video:

• Why are opportunity zones so impactful for housing across the U.S., and why are we at a critical moment for the housing and construction market? (jump to 1:10)
• How do opportunity zones compare to other tax incentive programs? (jump to 2:43)
• How efficient are opportunity zone housing deliveries versus other development programs? (jump to 3:43)
• How is housing an issue that everyone can agree upon? (jump to 4:21)
• What are some of the hottest housing markets for investors in 2025? (jump to 5:00)
• How have opportunity zones boosted a new wave of developers? (jump to 7:25)

Learn more about opportunity zones:

• “Capital Square’s Opportunity Zone Transformations”
• “An Investment Case for Qualified Opportunity Zones: Program Analysis & Markers of Success”

Contact the Capital Square team to continue the conversation.

The post Opportunity Zone Summit Recap with Jimmy Atkinson & Jay Parsons appeared first on Capital Square - Raising capital, buildings and expectations.

Video highlights include:

• What are the fundamental components around today’s supply and demand equation? (jump to this section)
• The Unique Story of Today’s Supply (jump to this section)
• The Unique Story of Demand in 2025 (jump to this section)
• Looking Forward (jump to this section)
• How Demand Fundamentals Can Dictate Better Investor Outcomes (jump to this section)
• The Evolving Fundamentals of the Sun Belt (jump to this section)

Delivering ongoing market analysis and tax-advantaged real estate investment education through our real estate research library and our ongoing expertise series is one of Capital Square’s competitive advantages.

Explore our latest open offerings and contact our team to continue the discussion.

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.

The post Investment Insights: Multifamily Supply & Demand Update | Q2 2025 appeared first on Capital Square - Raising capital, buildings and expectations.

“The future standard portfolio may look more like 50/30/20—stocks, bonds, and private assets like real estate, infrastructure, and private credit,” Fink wrote, and because portfolio allocation is one of our favorite discussions at Capital Square, we wanted to continue the conversation.

We’ve analyzed the Yale Endowment Model, and we’ve written white papers on “Why Real Estate is an Essential Component of Portfolio Allocation.”

In short, as Larry Fink points out, the data verifies that superior portfolios include real estate.

Insights from Capital Square’s Leadership

• “Financial advisors are coming around to what we’ve always known. Adding real estate investments to an investor’s portfolio increases returns and reduces risk. The stats back it up.” — Louis Rogers, founder and co-CEO, Capital Square
• “Following the lead of endowments and institutions, retail investors are looking for greater diversification than the traditional equity and fixed income products can provide. Investing in real estate and other hard assets makes logical sense to reduce the long-term impact of volatility.” — Drew Jackson, Chief Distribution Officer, Capital Square
• “If your goal is to grow AUM, grow referrals, and retain client assets, using private real estate is no longer just an optional strategy. It’s a requirement.” — Jessica Correnti, CFP ®, Senior Vice President, National Accounts, Capital Square
• “An increased allocation to non-correlated alternatives, like private real estate has historically reduced risk and increased returns in a client portfolio. This strategy closely aligns with institutional investing.” — Albert Thompson, Vice President, National Accounts, Capital Square
• “I think this is a long time coming especially now that alternatives are getting more eyes looking at them.” — Mark Mercado, Executive Vice President, Investment Programs & Operations, Capital Square

Investing in real estate can mean an array of possibilities, each designed for different investor goals and preferences. Returns-oriented investors can invest solely in development funds; tax-conscience investors can invest in DSTs and qualified opportunity zone funds; investors looking to diversify risk with a steady dividend can invest in a REIT.

Capital Square’s unique value chain allows for each of these real estate investment vehicles, which enables investors to remain with Capital Square for an asset’s entire life cycle, reducing transaction costs and maximizing investor return potential.

So, in short, what is our team’s reaction to the recently increased conversations about including real estate within an optimal investment portfolio? We’re ready for it.

Connect today to continue the conversation.

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 Optimal Portfolio Allocation Includes Real Estate Investments appeared first on Capital Square - Raising capital, buildings and expectations.