Capital Square Launches $41.85M DST for New Orlando-Area Townhome Community
Capital Square, a nationally recognized sponsor of tax-advantaged real estate investments and a leading developer and manager of residential communities, has announced the launch of CS1031 Cacema Townhomes, DST, a new Delaware statutory trust investment offering centered on a recently completed 176-unit townhome community in Kissimmee, Florida, near the Orlando metropolitan area. The offering is seeking to raise approximately $41.85 million in equity from accredited investors and is designed to provide opportunities for Section 1031 exchange participants as well as investors seeking stable income and long-term appreciation potential.
The launch reflects Capital Square’s continued focus on high-growth Sun Belt markets where strong population gains, expanding employment opportunities, and constrained housing supply continue to support long-term multifamily demand. The company believes the Kissimmee submarket presents a compelling investment opportunity due to its rapid demographic growth, increasing economic activity, and limited availability of larger rental housing options.
CS1031 Cacema Townhomes is structured as a Delaware statutory trust, or DST, allowing investors to potentially defer capital gains taxes through Section 1031 exchanges under the Internal Revenue Code. DST offerings have become increasingly popular among investors seeking passive ownership opportunities in institutional-quality real estate while maintaining eligibility for tax-deferred exchange treatment.
According to Capital Square founder and co-chief executive officer Louis Rogers, the company strategically secured favorable financing terms for the property amid ongoing volatility in interest rate markets.
“Interest rates have been exceptionally volatile lately,” Rogers said. “Therefore, Capital Square locked the interest rate at 5.04% on Cacema Townhomes. With favorable debt in place, the DST offering is an excellent choice for exchangers who need debt on their replacement property to satisfy the Section 1031 debt requirement.”
The fixed financing structure is expected to provide investors with additional stability at a time when borrowing costs across the commercial real estate sector have fluctuated significantly. Capital Square emphasized that securing long-term financing at an attractive rate strengthens the overall investment profile of the community.
Located in Kissimmee, one of the fastest-growing residential markets in Central Florida, Cacema Townhomes was developed to meet rising demand for spacious rental housing near major employment and entertainment destinations throughout the Orlando region. The newly constructed community features a mix of three-bedroom and four-bedroom townhomes designed to appeal to families, professionals, and renters seeking larger living spaces with modern amenities.
Each townhome includes attached garages, private entrances, and semi-private backyard spaces that provide residents with greater privacy and functionality compared to traditional apartment-style multifamily housing. Interior finishes throughout the community were designed to reflect current renter preferences, including granite countertops, stainless steel appliances, wood plank-style flooring, and full-size in-unit washers and dryers.
In addition to its residential features, the community offers a wide range of lifestyle-focused amenities intended to enhance resident experience and support long-term occupancy demand. These include a resort-style heated swimming pool, a 24-hour fitness center, a clubhouse, and a lakeside firepit lounge complete with an outdoor summer kitchen. Additional amenities include walking trails, fenced bark parks for pet owners, and electric vehicle charging stations.
Capital Square believes the property’s location is one of its strongest advantages. Cacema Townhomes is situated within walking distance of The Loop Kissimmee, a major 500,000-square-foot open-air retail and entertainment center that features shopping, dining, and recreational options. The community is also located approximately 1.5 miles from Crosslands Shopping Center, providing residents with convenient access to additional retail services and everyday necessities.
The property also benefits from close proximity to several of Central Florida’s largest employment centers. Major nearby employers and destinations include Walt Disney World Resort, Orlando International Airport, Universal Epic Universe, Lockheed Martin, and AdventHealth Kissimmee. These employment hubs continue to drive economic growth and attract new residents throughout the region.
Another important economic driver near the property is NeoCity, a 500-acre technology and innovation district focused on STEM-related industries. Located roughly 15 minutes from Cacema Townhomes, NeoCity continues to attract high-wage job growth and advanced technology investment to Osceola County. Capital Square believes the expansion of this technology corridor will further strengthen housing demand within the submarket over the coming years.
Demographic trends in the area also support the long-term outlook for the investment. According to data from KPM Franklin, population growth within a one-mile radius of the community increased by 26% between 2020 and 2025. The same area is projected to experience an additional 18% population increase by 2030, reflecting continued residential expansion throughout the Kissimmee market.
Kissimmee is located within Osceola County, currently recognized as the fastest-growing county in the Orlando metropolitan area and among the fastest-growing counties in the United States. Data from the Orlando Economic Partnership indicates that Osceola County’s population increased by 70% between 2010 and 2024 and is projected to more than double by 2040.
Capital Square executives believe these growth patterns, combined with tightening housing supply conditions, create a favorable environment for rental performance and occupancy stability.
Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square, noted that recent regulatory changes affecting future construction could further limit new supply within the submarket.
“Osceola County’s recent decision to raise impact fees on new townhome construction by more than 81% will constrain future supply in the submarket,” Huffman explained. “Established communities like Cacema Townhomes stand to benefit from reduced competition at a time when demand for larger floor plans remains strong. Tightening supply across the region should support rent growth and occupancy stability.”
The limited availability of competing properties in the Kissimmee submarket further strengthens the investment case. According to Capital Square, only one other townhome rental community currently operates within the area, consisting of 187 units located approximately 25 minutes south of Cacema Townhomes. Additionally, only one competing property offers four-bedroom units, highlighting the scarcity of larger rental options in the region.
Supply constraints are especially evident for larger floor plans. Market data indicates that only 100 vacant three-bedroom and four-bedroom units currently exist across the broader submarket, while just 57 additional units under construction are expected to deliver by 2027. This imbalance between supply and demand is expected to support continued occupancy and rental growth for larger townhome communities like Cacema.
Since its founding in 2012, Capital Square has established itself as one of the nation’s leading sponsors of Section 1031 exchange investments. The company has acquired more than 175 real estate assets on behalf of over 6,500 investors seeking tax-advantaged replacement properties and opportunities for passive income generation and long-term capital appreciation.
Through the launch of CS1031 Cacema Townhomes, DST, Capital Square continues expanding its portfolio of residential investment offerings while targeting markets positioned for sustained economic and demographic growth. By combining modern housing design, strategic market selection, and tax-efficient investment structures, the company aims to provide accredited investors with access to high-quality multifamily assets in some of the nation’s fastest-growing regions.
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