Capital Square Zero-Coupon DFW Hospitality DST

Investment Details

Investment Sponsor: Capital Square

Location: Texas

Current Yield: 0%

721 Exchange: Optional

Property Type: Hospitality

In-Place Loan: 77.78% LTV

Distribution Frequency: Zero-Coupon

Estimated Hold Period: 10 Years

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.

Investment Documents

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Investment Sponsor

Capital Square offers tax-deferred 1031 Exchange opportunities through carefully structured real estate investments. With a focus on diverse asset classes like multifamily, office, and industrial properties, Capital Square provides access to income-generating properties designed for long-term performance. Capital Square is a national real estate firm with over $7.8 billion in transaction volume since 2012. Investors benefit from a comprehensive, vertically integrated platform covering acquisition, property management, and asset disposition.

Sponsor Historical Performance

• 34 Realized 1031 DST Investments

• 1.63x Equity Multiple

• 9.05% Average Annual Return

• 5.8 Year Average Holding Period

• 94.1% Investment Success Rate

1031 Exchange Calculator

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LTV: 53.67% · Yield: 5.69%

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Cash flows are not guaranteed. Forecasts are per the Sponsor's Private Placement Memorandum. This tool is for educational purposes only and not for making investment decisions. Distributions can be decreased or ceased at any time.

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