Approximate Transcript:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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.

The post Empowering Excellence: Learning & Development at Capital Square 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/.

The post Chasen Grand Opening in Scott’s Addition appeared first on Capital Square - Raising capital, buildings and expectations.

(If you missed it, discover part one.)

Key Moments:

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

Approximate Transcript:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Jorge: Same, same, but different, right?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The future of Build for Rent starts here.

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

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

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

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

Key Moments:

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

Approximate Transcript:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[Continue watching part 2 of this conversation.]

Is your portfolio built for the renter of the future?

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

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

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

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.

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.

As the year unfolds, the evolving market evokes just as many questions as answers. That’s why our team remains dedicated to providing up-to-date analysis just for you. Our latest investment insight video – a behind the scenes discussion between Capital Square’s co-CEO and chief investment officer, Whitson Huffman, and Capital Square’s executive vice president of acquisitions, Jorge Figueiredo – delves into all this and more.

Video highlights include:

• Why do Fed rates matter to real estate investment? (jump to 0:20)
• Are we at a normalized level of unemployment, and what does this mean for the rental housing occupancy and absorption? (jump to 1:56)
• What is the supply-side story of Q3 2025? (jump to 04:32)
• How does Capital Square’s 2025 portfolio data demonstrate how these regional and national stories are taking shape? (jump to 05:56)
• How does Capital Square’s net rental income compare to PPM projections? (jump to 06:22)
• What is Capital Square’s perspective looking ahead? (jump to 09:22)

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 Real Estate Investment Insights: Q3 2025 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.

They also shared an overview of the Fair Market Value concept and its implications, as well as Capital Square’s newest opportunity zone project, OZ Fund IX.

Video highlights include:

• Introduction to Opportunity Zones 1.0 (0:36, jump to this section)
• Opportunity Zones 2.0 Legislation Signed into Law on July 4, 2025 (07:07, jump to this section)
• Historical Context and Timeline (8:02, jump to this section)
• Key OZ 2.0 Provisions Included in H.R. 1 (12:24, jump to this section)
• Five Reasons to Make OZ 1.0 Investments (22:11, jump to this section)
• Fair Market Value (FMV) Example (29:33, jump to this section)
• Utilizing the J-Curve: A Hypothetical Example (32:09, jump to this section)
• Capital Square’s Opportunity Zone Transformations (36:58, jump to this section)
• Offering Details (39:40, 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.

Learn more about opportunity zones:

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

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 Opportunity Zones in Focus: Exploring the One Big Beautiful Bill Act appeared first on Capital Square - Raising capital, buildings and expectations.