Capital Square CS1031 Zero Coupon DFW Hospitality, DST

Investment Description

Located in the heart of downtown Fort Worth, a city that ranked second in the nation for population growth between 2020 and 2024, this 14-story hotel has a long-term franchise agreement with Marriott’s upscale Le Meridien brand. Investors will own the ground under the Le Meridien hotel; ground leases are considered the safest segment of real estate ownership.

Investment Highlights

• CS1031 Zero-Coupon DFW Hospitality DST is an investment in an approximately 0.92-acre, 99-year ground lease site located in Fort Worth, Texas.

• Location: heart of downtown Fort Worth, steps from Sundance Square. Only 0.2 miles from Fort Worth Transit Center and 25 miles from DFW International Airport.

• Property: newly constructed in 2024, 14-story Class A hotel with 188 rooms.

• The 36-year loan term provides the trust with flexibility to exit the investment in ideal market conditions without risks imposed by a pending loan maturity. Fully amortizing loan with zero residual loan balance to pay off upon maturity.

• The sponsor believes that the loan's sub-6% interest rate is highly attractive compared to 30-year corporate bonds with investment-grade A-AAA ratings. This rate supports higher leverage and a larger loan amount.