Capital Square Launches $41.85 Million Multifamily DST for Kissimmee Townhome Community Near Orlando

KISSIMMEE, Fla. — Capital Square has launched CS1031 Cacema Townhomes, DST, a Delaware statutory trust offering seeking to raise $41.85 million in equity from accredited investors for a newly constructed, 176-unit townhome community in Kissimmee, Florida, the firm announced May 26, 2026. The offering is structured primarily for investors pursuing tax-deferred exchanges under Section 1031 of the Internal Revenue Code.

The offering is part of Capital Square's strategy of packaging multifamily assets into DST structures, giving accredited investors fractional ownership interests that can satisfy both the like-kind property and debt replacement requirements under Section 1031.

Deal Structure and Financing Terms

A central feature of the offering is the interest rate Capital Square secured on the property's debt. The firm locked a 5.04% interest rate on Cacema Townhomes amid what it described as an exceptionally volatile rate environment.

"Interest rates have been exceptionally volatile lately," said Louis Rogers, founder and co-chief executive officer of Capital Square. "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."

Detailed operating metrics including occupancy rate, in-place rents, net operating income and cap rate were not disclosed in the offering announcement.

Property and Amenities

Cacema Townhomes offers three- and four-bedroom floor plans, each featuring attached garages, private entries and semi-private backyards. Interior finishes include granite countertops, stainless steel appliances, wood plank-style flooring and full-size in-unit washers and dryers.

Community amenities include a resort-style heated pool, a 24-hour fitness center, a clubhouse, a lakeside firepit lounge with an outdoor summer kitchen, a walking trail, two fenced bark parks and EV charging stations.

The property is within walking distance of The Loop Kissimmee, a 500,000-square-foot open-air retail center, and approximately 1.5 miles from Crosslands Shopping Center. Major nearby employment centers cited by Capital Square include Walt Disney World, Orlando International Airport, Universal Epic Universe, Lockheed Martin and AdventHealth Kissimmee. NeoCity, a 500-acre STEM-focused technology district approximately 15 minutes from the property, is described by the firm as a driver of high-wage job growth across the submarket.

Osceola County Growth and Supply Constraints

Capital Square's investment thesis cites strong demographic demand and tightening future supply. The firm cited data from KPM Franklin showing that population within one mile of Cacema Townhomes grew 26% between 2020 and 2025 and is projected to grow an additional 18% through 2030. Osceola County, where Kissimmee is located, is described by Capital Square as the fastest-growing county in the Orlando metropolitan area and the 10th fastest-growing county in the nation. According to data from the Orlando Economic Partnership cited by Capital Square, the county's population increased 70% from 2010 to 2024 and is projected to more than double by 2040.

On the supply side, Osceola County recently raised impact fees on new townhome construction by more than 81%, a policy change Capital Square says will constrain future competition in 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," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "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."

Capital Square also noted that multifamily competition in the immediate Kissimmee submarket is limited. According to the firm, only one other townhome community — consisting of 187 units located approximately 25 minutes south — currently operates in the submarket, and only one competing property offers four-bedroom units. The firm cited just 100 vacant three- and four-bedroom units across the submarket, with 57 additional units under construction expected to deliver in 2027.

Capital Square's DST Platform

Capital Square was founded in 2012. The firm states it has acquired more than 175 real estate assets on behalf of more than 6,500 investors and has completed more than $8.9 billion in transaction volume since inception.

Capital Square describes itself as a vertically integrated real estate firm offering DSTs for Section 1031 exchanges, qualified opportunity zone funds and a real estate investment trust. Its development activity includes mixed-use projects totaling more than 2,000 apartment units with a combined development value exceeding $800 million. Capital Square Living, the firm's property management division, oversees more than 13,000 apartments across multiple states.

The firm has been recognized by Inc. 5000 as one of the fastest-growing private companies in the nation for nine consecutive years, according to Capital Square.

Securities for the offering are offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. The firm notes that DST investments carry material risks including illiquidity, tenant vacancies, interest rate risk, financing risk, potential adverse tax consequences and the potential loss of the entire investment principal.

Sources: Capital Square — CS1031 Cacema Townhomes, DST Announcement (May 26, 2026)