CS1031 Cacema Townhomes, DST

Offering Overview

CS1031 Cacema Townhomes, DST is a $75.255 million Delaware statutory trust offering $41.85 million of equity in Cacema Townhomes, a recently constructed 176-unit Class A multifamily townhome community at 2670 Meadow Creek Road in Kissimmee, Florida. Completed in 2024 on approximately 18.48 acres, the property includes 130 three-bedroom and 46 four-bedroom townhomes averaging 1,424 square feet, 496 parking spaces, attached garages, private or semi-private yards, and resort-style amenities. The property was approximately 87% occupied as of May 8, 2026 and is projected to stabilize at 94% occupancy. The capitalization includes a $33.405 million Freddie Mac loan from Walker & Dunlop, LLC at a fixed 5.04% rate, interest-only for eight years, with monthly principal and interest thereafter based on a 30-year amortization schedule through the June 1, 2036 maturity. The ten-year underwriting targets annual rent yields of 4.40% to 5.49% through Year 8 and 4.69% to 4.88% in Years 9 and 10, with a 1.69x cumulative equity multiple and 6.32% IRR in the base 10-year disposition analysis; projections are estimates and not guarantees. The offering is sponsored by Capital Square.

Investment Highlights

• Recently constructed 176-unit luxury Class A townhome community with a mix of 130 three-bedroom and 46 four-bedroom units.
• High-end interiors, attached garages, private or semi-private yards, and a broad amenity package support the property's family-oriented rental positioning.
• Kissimmee and the broader Orlando MSA offer access to major employment and tourism drivers, including Walt Disney World, Lake Nona Medical City, Orlando International Airport, and The Loop retail center.
• The property was approximately 87% occupied as of May 8, 2026, with the sponsor underwriting near-term stabilization at 94% occupancy.
• Fixed 5.04% Freddie Mac financing, eight years of interest-only payments, and a ten-year maturity/hold framework provide near-term debt-service visibility.

Forecasted Cash Flow

Projected annual cash-on-cash distributions with the corresponding tax-equivalent yield over the hold, based on the sponsor’s underwriting assumptions.

Illustrative projections only — targeted distributions are not guaranteed and actual results will vary. Tax-equivalent yield assumes depreciation shelter of distributed income.

Analyst Notes

The underwriting is most sensitive to the pace of lease-up, achievement of 94% stabilized occupancy, rent growth, operating expenses, and the ten-year sale assumption. The base disposition analysis shows a 1.69x cumulative equity multiple and 6.32% IRR, but those outcomes depend on the projected operating performance and exit value and are not guarantees.

Financing

Financing terms for this offering are summarized below.

Benchmark Comparison

Benchmark reflects the average of comparable Multifamily offerings. Differences are relative to the benchmark.

Offering Documents

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About the Sponsor

Capital Square

Capital Square has evolved from a pure 1031/DST sponsor into one of the more vertically integrated platforms in the securitized exchange market, with over $6 billion in AUM and more than $7.5 billion in transaction volume since its 2012 founding by Louis Rogers. Beyond sponsoring DSTs across 175-plus assets for some 6,500 investors, the firm develops its own multifamily product, manages roughly 13,000 apartments through Capital Square Living, and diversifies into Qualified Opportunity Zone funds and a REIT. That control of the full lifecycle—and full-cycle results such as a cited 159% return of equity on a completed DST—make it a benchmark name for diligence-minded exchangers.