SAN ANTONIO, TX - Capital Square, one of the nation's leading sponsors of tax-advantaged real estate investments and an active developer and manager of housing communities, announced the acquisition of Woodland Cottages, a purposefully designed, build-for-rent community in the booming town of Fredericksburg, Texas. The 62-unit, active adult community was acquired on behalf of CS1031 Texas Active Adult Living I, DST, which seeks to raise equity from accredited investors.
"Capital Square is bullish on various segments of housing for the Section 1031/DST platform," said Louis Rogers, founder and co-chief executive officer of Capital Square. "First it was multifamily communities, Class A and B, then age-restricted manufactured housing communities in Florida, next conventional build-for-rent communities in the Southeast and now an active adult build-for-rent community in Texas. Our goal is to provide housing investments that generate both stable returns and strong capital appreciation."
Located in historic Fredericksburg, at 161 Friendship Lane, Woodland Cottages features ADA-compliant rental homes tailored for active adults. The community has 20 one-bedroom residences, averaging 899 square feet, and 42 two-bedroom residences, averaging 1,355 square feet. Each home includes spacious, open-concept layouts with zero-threshold showers and other aging-in-place features. Community amenities include a 6,000-square-foot clubhouse, where weekly activities are hosted, as well as a swimming pool, fitness center and dedicated resident concierge to foster a vibrant and socially connected lifestyle.
Fredericksburg is one of the fastest-growing regions in the nation. Within a 50-mile radius, the area has had 18.8% population growth over the past five years, driven by its strong appeal among retirees and lifestyle-oriented residents. The region was recognized as a "Top Retirement Dream Area" in 2025 by Scout Report. Additionally, rents in Fredericksburg have increased by 12.2% annually, among the highest growth rates in the U.S.
"The launch of this offering highlights the increasing demand for purpose-built, active adult rental communities in lifestyle-driven markets like Fredericksburg," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "Fredericksburg offers exceptional regional demographics, rising rent trends and expansive regional growth, and we believe that this property is uniquely positioned to provide high-quality housing and the potential for long-term value to our investors."
Home to over 80 wineries, Fredericksburg ranks as the second most visited wine tourism destination in the nation, just behind Napa Valley, CBS News reported in 2023. Situated 80 miles west of Austin and 70 miles north of San Antonio, Fredericksburg is also renowned for its Main Street historic district. The area has an unemployment rate of 2.7% as of April 2025, a full basis point below Texas' 3.7% and 1.2 basis points below the national rate of 3.9%, reports Colliers. Approximately 33.9% of the city's population is 65 or older. More than 1 million people visit Fredericksburg annually, generating $175 million in tourism revenue and supporting around 1,200 local jobs, according to the 2025 Fredericksburg, TX Convention & Visitors Bureau Economic Impact Report.