Capital Square: DSTs, Housing Investments, and Sponsor Review

By Jerry Baker

Capital Square is a real estate firm that began in 2012 as a sponsor of DST investments for 1031 exchanges. It now describes a business that combines investing, development, and property management, with a focus on housing. This guide explains its business lines and the questions I would use to review a Capital Square investment. [1]

This is a company research guide, not an offering page. It does not mean an investment is open, available through Baker 1031, or approved for a client. Statements about the firm come from the official sources listed below; the review questions are my proposed approach.

A sponsor that also builds and manages

Capital Square identifies Louis Rogers as its founder and co-chief executive officer. Its leadership page lists Whitson Huffman as co-chief executive officer and chief investment officer, and Jay Olander as president and chief financial officer. The page also identifies leaders for acquisitions, asset management, development, investor relations, and property management. Those titles were checked on October 6, 2026. [2]

The firm’s divisions page describes a development business founded in 2019 and a property management business launched in 2023. Capital Square Living is the name of the management division. The company presents this mix as an in-house approach to the life of a property, from investment through operations. [3]

That structure gives me a useful way to organize research. I would study three connected jobs: choosing and funding the asset, carrying out the property plan, and reporting the results. I would want to know which entity does each job for the specific proposal. A division’s existence does not establish that it performs every service on every property.

I would also ask how the firm checks its own work. Who approves a budget increase? Who reviews a deal sold by one affiliate to another? Who compares the property manager’s results with the original plan? Keeping more work inside one organization can make communication easier, but investors still need clear contracts, fees, and oversight.

Three housing categories, three operating questions

Capital Square’s investment page describes a focus on apartments, build-for-rent homes, and manufactured housing communities in Florida. It says its DST platform addresses those three housing categories, while development work focuses on apartments and build-for-rent. That is the firm’s stated scope, not a list of currently available investments. [4]

Apartments: look beyond the occupied-unit count

The firm’s multifamily discussion emphasizes rental housing and the ability to adjust rents as leases turn over. I would treat those ideas as a starting thesis, then test them against a specific property. I would not reuse older national statistics from a marketing page as a current local forecast. [5]

My first request would be a rent roll and recent operating statements. I would compare leased units, occupied units, rent billed, and rent collected. I would ask how concessions and unpaid rent affect the cash result. A property can have many occupied units while still missing the income assumed in a forecast.

I would also ask what competing properties are charging today, including special offers. If the plan calls for rent increases, I would want to see why residents would pay them. New paint alone is not a market study. I would want evidence that the improvement matches what nearby renters value and can afford.

Build-for-rent: separate a finished community from a construction plan

Capital Square describes build-for-rent as rental homes that combine features of a neighborhood with professional management and shared amenities. Its material links the strategy to its broader housing business. That description does not tell us whether a proposed investment is finished, leasing up, or still being built. [6]

For a completed community, I would study rents, move-outs, maintenance, and local alternatives. For a project under construction, I would need the cost budget, permits, schedule, contractor terms, and funding plan. I would ask who covers a cost overrun and how much room the budget has for delays.

Those are different files. A track record buying completed housing should not be used as the sole evidence that a new development will work. I would ask for experience with the same kind of project, in a similar stage, from the people assigned to do the work.

Manufactured housing: know what the investment owns

Capital Square’s manufactured housing material highlights Florida communities, including age-restricted communities with amenities. Its examples describe a particular segment of the market. They should not be read as a description of every manufactured housing property. [7]

I would begin by separating the land, common areas, utility systems, and homes. Which of those does the investment own? Which belong to residents? What costs remain with the owner? I would request a site-level capital plan, including roads, water, sewer, drainage, and any community buildings.

For a Florida asset, my review would also include insurance terms, deductibles, and the property’s own hazard reports. I would ask how the budget accounts for damage, repairs, and an interruption in revenue. Those are questions about the actual site, not a claim that one state or property type always has the same risk.

The ownership vehicle changes the decision

Capital Square lists DSTs, Opportunity Zone funds, development funds, and Capital Square Housing Trust among its investment channels. The investment page also describes annual outside audits of cash flow at DST properties. That claim helps form a document request, but it does not make these vehicles equivalent or verify the outcome of a current deal. [4]

I would ask a client to finish this sentence before going further: “I am buying an interest in ___, which owns ___.” It is a simple test, and it catches a lot. Owning an interest in a property trust is not the same as buying shares in a company or an interest in a development fund.

For an exchange, I would have the tax adviser confirm whether the actual interest fits Section 1031. The IRS limits like-kind exchange treatment to qualifying real estate held for business or investment. A sponsor’s experience with exchanges does not make every product it offers exchange property. [8]

For a development or Opportunity Zone fund, I would request a separate tax analysis using the law and dates that apply to the client. I would also keep the tax case separate from the building case. A project still needs a workable budget, a realistic timeline, and demand for the finished property.

For a REIT, I would ask whether the shares trade on an exchange and what rights exist to request repurchase. SEC investor guidance stresses that nontraded REITs can be hard to sell and may lack a readily visible market price. A liquidity program needs to be read, not assumed. [9]

What I would ask Capital Square Living

Capital Square describes its management division as part of its in-house operating model. The public management page emphasizes resident service, operating efficiency, energy reviews, and leasing tools. Those are company goals and activities. They do not establish how any one community has performed. [10]

I would ask for a property scorecard that stays consistent from quarter to quarter. The scorecard should show rent collected, occupancy, concessions, resident turnover, open work orders, payroll, repair costs, and major capital work. It should also show the original budget beside the actual result.

When a number misses the plan, I want a plain explanation. Was the budget too optimistic? Did a local competitor open? Did insurance renew at a higher cost? Did repairs take longer than expected? The answer matters because the next step should address the cause.

I would ask how leasing decisions are made at the site level. Can the on-site team change rents or offer concessions? Who signs off on those choices? How does the manager check whether a lease special fills homes profitably or merely buys occupancy at too high a cost?

For maintenance, I would want to distinguish routine work from spending that improves or replaces long-lived items. Both use cash, but they tell us different things about the property. I would ask for the expected cost per move-out and the plan for larger projects. A smooth resident experience depends on work that is easy to overlook in a return summary.

A housing forecast I would stress-test

Here is a simplified example of the kind of exercise I would bring to a multifamily review. It is not a forecast for Capital Square or an actual property. Assume collected annual revenue is $2 million and operating expenses are $900,000. That leaves $1.1 million before debt service, capital work, and other investor-level costs.

Now suppose revenue falls by 5% to $1.9 million while expenses rise by 5% to $945,000. The amount left is $955,000. That is a $145,000 decline from the original $1.1 million, or about 13.2%. Small moves on both sides of the budget can have a larger effect on what remains.

I would then place the actual loan payments, cash reserves, and other costs below that line. That shows whether the investment has room to absorb the change. The exercise does not predict trouble. It shows which assumptions deserve the most attention.

I would run another version with a slower lease-up or a delay in planned renovations, if those are part of the deal. For a finished property, I would test renewal rents and expenses. For a development, I would test construction timing and cost. Each version should fit the proposed plan rather than repeat the same generic downside case.

The last test would concern the sale. I would request the cash that remains after loan payoff and selling costs, not just a projected building value. A large future price is not much help if the path to it uses more cash or takes longer than the client can tolerate.

What an audit can tell you

Capital Square’s statement about annual property cash-flow audits is worth following up on. I would request the report itself, identify the auditor, and read the period and scope covered. The word “audit” needs an object: an audit of what, for which entity, and for which dates?

I would ask whether the report covers historical financial statements, a particular cash-flow measure, or something else. I would also ask whether every relevant property is included. An audit of one set of historical information is not a guarantee of the next year’s rent, a future appraisal, or an eventual sale price.

If a sales presentation refers to an audited track record, I would request the underlying table and the report that supports the description. I would check whether returns are before or after fees, how open assets are valued, and how unsuccessful investments are treated. A helpful presentation should let a reader follow the calculation.

I would compare the audit dates with the most recent operating report. A clean report from a prior year cannot answer every question about changes since then. Recent results, lender updates, and material changes should be reviewed on their own.

In-house work still needs clear economics

Capital Square’s combined operating model creates a straightforward fee question: which part of the organization is paid for each job? I would request the acquisition, management, development, financing, and sale fees that apply to the proposed investment. I would not assume that every category exists in every deal.

For each actual fee, I would ask what it is based on and when it is due. A fee based on gross revenue behaves differently from one based on a fixed amount. A payment due at closing behaves differently from one earned only after an investor hurdle. The documents should make those differences easy to trace.

I would also ask how conflicts are handled if one affiliate provides services to another. Who approves the contract? Can the provider be replaced? How are changes reported? These are governance questions I would raise whenever a sponsor uses related firms. They are not claims that a particular arrangement is improper.

Finally, I would request the sponsor’s own investment, if any, and its exact terms. Investing alongside clients can be relevant, but the amount alone is not enough. I would ask whether the sponsor shares the same fees, priority, liquidity, and loss exposure as the client.

The short review file I would want

After the full documents are read, I would reduce the decision to a few pages. One would explain the property, legal structure, and people in charge. Another would show sources and uses of funds, fees, debt, and reserves. A third would show the operating plan, downside cases, and exit assumptions.

I would add a fourth page for the client. What income do they need? How much cash must remain accessible outside the investment? What does their exchange require? What tradeoffs are they willing to accept? A strong property can still be wrong for a person who needs liquidity soon.

The remaining questions should stay visible until answered. I do not want an attractive housing story to cover a weak local assumption. I also do not want a legal label or audit claim to substitute for understanding the actual property. The review should end with a clear explanation of why the proposed investment might fit—and what could prevent it from working as planned.

Frequently asked questions

Is Capital Square only a DST sponsor?

No. It began as a DST sponsor, but its current public description includes development and property management. Review the legal structure and business plan of the investment being proposed. The company’s broader capabilities do not tell you which services or rights belong to that specific investment. [1]

What is Capital Square Living?

It is the firm’s property management division. Capital Square says it launched the management business in 2023. Ask whether it manages the particular property under review and request the relevant contract, fee schedule, and reporting plan. [3]

Does a property audit guarantee my cash flow?

No. Ask what the audit covers, which period it addresses, and which entity it concerns. Historical financial work does not promise future rent or distributions. I would read the actual report and review current operating data beside it.

Are apartments, rental homes, and manufactured housing the same risk?

No. I would examine the plan and costs of each property. An apartment renovation, a newly built rental community, and a land-lease community may require very different work. The same sponsor name does not erase those differences.

Can a development fund serve as my 1031 replacement?

Do not assume it can. Your tax adviser needs to review the legal interest and the complete transaction. A firm can offer DST exchange investments and other funds at the same time, while only certain interests may fit your exchange. [8]

Why does Jerry ask about local competitors?

Because a national housing story does not set the rent for one community. I would compare nearby homes, current lease offers, amenities, and location. The forecast should explain why renters would choose this property at the proposed price.

Does this directory entry endorse Capital Square?

No. It explains the company’s stated business and a review framework. It is not a recommendation, confirmation of a selling relationship, or a list of approved offerings. Any client decision requires separate investment and client-specific review.

Educational information, not an offer or a personal tax, legal, or investment recommendation. Examples are hypothetical and omit stated adjustments. Tax treatment depends on your facts and current law. Review your transaction with your CPA, attorney, and qualified intermediary. Real estate investments can lose value and may be illiquid.