CS1031 Richmond Active Living Apartments, DST Overview
CS1031 Richmond Active Living Apartments, DST is a Regulation D, Rule 506(c) private placement sponsored by Capital Square Realty Advisors, LLC that offers accredited investors beneficial interests in a Delaware statutory trust formed to own Everleigh Short Pump, a recently constructed, 165-unit, luxury Class A active-adult (55-plus) apartment community at 12651 Three Chopt Road in Short Pump (Henrico), Virginia, an affluent suburb of Richmond. Completed in 2019 on approximately 8.494 acres, the property comprises 83 one-bedroom, 80 two-bedroom and two three-bedroom units averaging 1,001 square feet, and was approximately 95.7% occupied as of December 15, 2025. The Trust acquired the property on December 17, 2025 from an unaffiliated seller for a purchase price of $63,500,000, with a total offering (Investment Cost) of $72,379,000 consisting of $33,300,000 of equity and a $39,079,000 nonrecourse Freddie Mac loan, an approximate 53.99% loan-to-investment-cost ratio. The property is master leased to a Sponsor affiliate and professionally managed on site by Greystar Active Adult. The strategy is to own a stabilized, income-producing residential asset serving the growing 55-and-over demographic, distribute monthly cash flow to investors over an anticipated ten-year hold, and exit through a sale or a Section 721 UPREIT contribution. Because an interest should constitute like-kind replacement property, the offering is designed for 1031-exchange investors seeking to defer capital gains while owning a passive, institutionally managed interest in real estate. It suits accredited investors with no need for liquidity who can bear the risks of a single-asset, illiquid, leveraged real estate program.
Highlights
The property is located in Short Pump, one of the most desirable suburbs in the greater Richmond MSA, a market of nearly 1.3 million residents that the Memorandum describes as the second-fastest growing region in Virginia. Short Pump is affluent, with an average home value of approximately $782,000, a median sale price near $605,000, and average household incomes of roughly $177,000, alongside unemployment of about 3.7%, below the national average. Residents enjoy immediate access to 5.5 million square feet of retail, dining and entertainment and a Kroger-anchored shopping center, and the community is rated 'A' for retirees by Niche. Richmond's diverse economy spans healthcare, finance, logistics and technology and is drawing major investment, including The Lego Group's $360 million regional distribution center and a planned $5 billion Eli Lilly manufacturing facility located roughly five miles from the property.
Everleigh Short Pump is a 2019-vintage, Class A active-adult community purpose-built for the 55-and-over renter. Interiors feature expansive floor plans, nine-foot ceilings, custom wood cabinetry, prep islands, stainless steel appliances, granite countertops, and walk-in tiled showers with spa benches, with select units offering private patios, balconies, carports and garages. Community amenities include a great room, resident lounge, business and entertainment rooms, coffee bar and bistro, library, gaming area, theater room, fitness center, yoga and art studios, a heated swimming pool and sun deck, and a weather-protected porte-cochere. Lifestyle services tailored to active adults include a dedicated activities director, professional home maintenance, fitness and creative classes, WiFi throughout, package service and social events. The 165 units span 83 one-bedroom, 80 two-bedroom and two three-bedroom homes averaging 1,001 square feet, with 215 parking spaces (about 1.3 per unit), and the community was approximately 95.7% occupied as of December 15, 2025.
The Trust financed the acquisition with a $39,079,000 nonrecourse loan from KeyBank National Association under the Freddie Mac Origination and Underwriting (OUS) program, representing an approximate 53.99% loan-to-investment-cost ratio against the $72,379,000 total Investment Cost and $33,300,000 of equity. The loan carries a fixed interest rate of 4.97% that has been locked for the full term, requires interest-only payments for the first six years and then principal and interest on a 30-year amortization schedule, and has an initial maturity date of January 1, 2036. Investors are attributed their pro rata share of the debt for tax purposes but are not personally liable for it, a feature of the DST structure. The moderate leverage and multi-year interest-only period are intended to support the projected Year 1 cash-on-cash distribution of approximately 4.50%, which is paid to investors monthly.
The offering is sponsored by Capital Square Realty Advisors, LLC, a national real estate firm headquartered in Richmond, Virginia that specializes in tax-advantaged offerings, including Delaware statutory trusts, qualified opportunity zone funds, a real estate investment trust and development funds. According to the Memorandum, Capital Square has completed more than $7.8 billion in transaction volume and overseen more than 170 real estate assets nationally, serving over 6,500 high-net-worth, family office and institutional investors, and has been named to the Inc. 5000 for nine consecutive years. Day-to-day operations are handled on site by Greystar Active Adult, a subsidiary of Greystar, the top-ranked U.S. apartment manager, which manages 154 active-adult communities across 105 markets and brings more than eight years of data specific to the active-adult segment. An audited full-cycle multifamily DST track record and an audited track record of Capital Square-sponsored offerings are included as exhibits to the Memorandum.
The offering is structured for Section 1031 exchange investors. Special tax counsel, Sands Anderson PC, is expected to opine that the Trust should be treated as an investment trust and that Beneficial Owners should be treated as owning an undivided fractional interest in the property, so that an interest should qualify as like-kind replacement property, allowing investors to defer capital gains and depreciation recapture taxes. Investors are attributed their pro rata share of the nonrecourse debt for exchange purposes, and income is generally expected to be passive and may be partially sheltered by depreciation. The Trust distributes available cash monthly. For an exit, the Signatory Trustee may sell the property or elect a Section 721 UPREIT contribution, under which each investor may exchange interests for operating partnership units of a Sponsor-affiliated REIT or, alternatively, receive a fair-market-value cash buy-out that can be used to structure a subsequent 1031 exchange or taken on a taxable basis.
Analysis of CS1031 Richmond Active Living Apartments, DST
Insights
In portfolio terms this is a tax-deferral instrument in a real-estate costume - a levered, single-asset senior-housing coupon an exchanger buys for passivity and continued deferral, not for total return. The underlying is sound: Everleigh Short Pump, a 2019-vintage, ~95.7%-occupied Class A active-adult (55+) community run by Greystar in an affluent Richmond suburb, so this is a credit-and-location bet, not a turnaround. The question is price.
On relative value the coupon is thin and the toll steep. Year 1 pays 4.50% monthly and the ten-year average is 4.73%; income Meets the sector average (~5.05%), but peak yield (5.32% in Year 6 versus a ~6.45% peer peak) and growth both screen Below Average - market-level income, below-market upside. For that you carry a ~22.9% all-in load, led by a 9.65% commission stack plus a 1.25% offering allowance, which opens a wide gap between equity raised and dollars in the ground for appreciation to close (the 2.95% disposition fee is at least subordinated to a full return of capital). One point the marketing undersells cuts the other way: the Year-1 coupon is actually earned - a 1.06 payout ratio means operations cover the distribution with a small cushion, not the reserve-funded payout common to DSTs.
The crux is the exit, and the payout schedule tips the mechanics: that coverage leans on six years of interest-only debt, and once amortization begins the distribution steps down to 4.08% in Year 7. With occupancy already at 95.7% there is no lease-up lever, so value rests on the 2035-36 cap-rate environment and the January 1, 2036 balloon on the 53.99%-LTV, 4.97% fixed loan - refinancing risk is what we would watch.
The non-obvious part: you pay ~23% up front to convert a taxable gain into a sub-5% passive coupon, so the deferred tax bill has to be large to beat simply paying it and holding liquid REITs or munis at comparable yield. And Capital Square's headline record - 19 full cycles, a 1.83x equity multiple and 15.2% average annual return over ~4.8-year holds - was built on shorter, more opportunistic deals; underwritten to a decade at sub-5% income, this asks the exit to do far more than that record ever had to.
Net: this fits an accredited exchanger with a large embedded gain, no liquidity need, and appetite for monthly income, capital preservation and 721 UPREIT optionality who can sit through ten years of illiquidity, no control and single-asset concentration. Anyone deploying fresh cash, or reaching for above-market yield, real growth or a shorter hold, should pass.
Advantages
The offering pairs a newer, stabilized, Class A residential asset with an in-demand and demographically durable use: active-adult (55-plus) housing, one of the more resilient multifamily niches. The property was built in 2019, was approximately 95.7% occupied as of December 15, 2025, and is managed on site by Greystar Active Adult, a specialist operator within the nation's largest apartment-management platform. The location is a genuine strength: Short Pump is an affluent, high-income, low-unemployment suburb within a Richmond MSA the Memorandum calls the second-fastest growing region in Virginia, supported by major corporate investment such as Lego and a planned $5 billion Eli Lilly facility nearby. The capital structure is moderate, with an approximate 53.99% loan-to-cost, a fixed 4.97% rate locked for the full term, and six years of interest-only payments that support a projected 4.50% Year 1 cash-on-cash distribution paid monthly. The nonrecourse Freddie Mac financing insulates investors from personal loan liability. The DST structure delivers a fully passive, turnkey 1031 replacement-property solution with a low minimum ($50,000 of equity), professional asset and property management, and an experienced sponsor with more than $7.8 billion in transaction volume and audited full-cycle DST results. The Disposition Fee is subordinated until investors receive a return of 100% of invested capital, and the offering provides two exit paths, a conventional sale or a Section 721 UPREIT contribution into a Sponsor-affiliated REIT with a fair-market-value cash-out alternative.
Concerns
The interests are illiquid, subject to transfer restrictions, and must be held for an indefinite period; there is no public market and the anticipated hold is roughly ten years. This is a single-asset, undiversified investment concentrated in one Short Pump, Virginia property, so performance depends entirely on the operations of that community and its local market. Under the DST structure, Beneficial Owners have no voting rights and no control over management or the decision to sell, refinance, or pursue a 721 UPREIT contribution, and must rely completely on the Sponsor-affiliated Master Tenant and Greystar to lease, operate and maintain the property and to pay Rent. The Master Lease permits the Master Tenant to accrue, rather than pay, up to one-half of the Annual Rent when property cash flow is insufficient, which could reduce or vary distributions, and accrued Rent may never be recovered. The offering carries substantial fees and load: total selling commissions and expenses of up to 9.65% of gross equity plus a 1.25% organization and offering allowance, a $1,270,000 (approximately 2.0%) acquisition fee, an annual asset management fee of up to $166,500, DST administration fees, a loan fee of roughly $390,790, and a 2.95% disposition fee. It is a best-efforts offering with no minimum raise. The property is leveraged with a loan maturing January 1, 2036, creating refinancing/balloon and potential foreclosure risk, and early-year distributions are supported in part by reserves. Projections rest on assumptions about occupancy, rents, expenses, real estate taxes and cap rates that may not be achieved, and the anticipated tax treatment depends on tax opinions and continued compliance with the 1031 and DST rules.
CS1031 Richmond Active Living Apartments, DST — Complete Offering Data
Offering & Structure
Investment NameCS1031 Richmond Active Living Apartments, DST
SponsorCapital Square
StructureDelaware Statutory Trust (DST)
Offering Type506(c)
StatusClosed
Last Updated2026-05-31
Size & Availability
Total Offering$72,379,000
Equity$33,300,000
Debt$39,079,000
Available Equity$0 (0% of equity)
Minimum Investment$50,000
Total Load22.92%
Initial Reserves4.91%
Property
Property TypeSenior Living
StrategyCore
LocationVA
Market TierTier 3
Income & Projections
Average Yield4.73%
Projected Yields (Y1–Y10)Y1 4.50% · Y2 4.55% · Y3 4.63% · Y4 4.68% · Y5 4.96% · Y6 5.32% · Y7 4.08% · Y8 4.46% · Y9 4.84% · Y10 5.24%
Tax-Adjusted Yield6.10%
Cap Rate Equivalent8.58%
Year 1 NOI$3,529,550
Y1 Payout Ratio1.06
Financing
In-Place LTV53.99% LTV
LenderKeyBank National Association (Freddie Mac OUS program)
Loan TypeFixed
Interest Rate4.97% (Fixed)
Loan Term10 years
I/O Period6 years
Amortization30 years
Y1 DSCR1.8x
Exit
Estimated Hold Period10 years
721 Exchange ExitOptional
Benchmarks (vs sector median)
Avg. Income4.73% vs 5.05% market — Meets Average
Growth18.22% vs 41.07% market — Below Average
Peak5.32% vs 6.45% market — Below Average
Every data point Baker 1031 tracks for this offering, in one place. Figures are drawn from the offering’s private placement memorandum and sponsor materials unless noted, are summaries for convenience only, and are qualified in their entirety by the PPM. Tap the ⓘ icon next to any label for what it means and how it is calculated.
