Capital Square Acquires Fort Worth Ground Lease for New High Leverage DST Investment

The acquisition is on behalf of a Delaware statutory trust investment offering

FORT WORTH, Texas, Sept. 3, 2025 /PRNewswire/ -- Capital Square, a leading sponsor of tax-advantaged real estate investments and an active developer and manager of housing communities across the nation, announced today the acquisition of a 99-year ground lease beneath a newly renovated luxury hotel in downtown Fort Worth, Texas. The hotel operates under Marriott International's Le Méridien brand.

The unsubordinated ground lease, which has 95 years remaining on its term, was acquired on behalf of CS1031 Zero Coupon DFW Hospitality, DST, a Delaware statutory trust (DST) investment offering. The offering seeks to raise equity from accredited investors with an offering loan-to-value ratio of 77.78 percent.

"Section 1031 requires exchangers with debt on their relinquished property to have equal (or greater) debt on their replacement property. This DST offering is structured with high leverage for exchangers who need a solution when their relinquished property has a high level of debt," said Louis Rogers, founder and co-chief executive officer of Capital Square. "In addition, unsubordinated ground leases are considered the safest tranche of real estate because the building owner/ground tenant risks loss of their building upon an uncured lease default, making defaults less likely. Thus, Capital Square believes that this DST investment is a safe solution for exchangers with higher debt needs."

Located at 815 Commerce Street, in the heart of downtown Fort Worth, the completely renovated, 14-story, full-service hotel reopened in 2024. The 254,778-square-foot property features 188 guest rooms, 313 garage parking spaces, a three-meal restaurant, rooftop bar with outdoor event space, ballroom, convention space, meeting rooms, outdoor swimming pool and deck, fitness center and on-site valet services. The hotel operates under a 25-year franchise agreement with Marriott's upscale Le Méridien brand and benefits from 2% annual rent increases in the ground lease.

"Fort Worth is one of the fastest-growing metropolitan areas in the nation, with powerful demand drivers that include strong population growth, a strong corporate presence and significant investment in higher education," said Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. "This acquisition delivers a unique opportunity for investors to participate in the ownership of a long-term ground lease of a newly renovated, high-end hotel in a prime downtown location."

Fort Worth has ranked among the fastest-growing cities in the country, with the U.S. Census Bureau reporting the city placed second in population growth among the 50 largest U.S. metropolitan areas from 2020 to 2024. Major employers in the city include American Airlines, Lockheed Martin, Boeing and BNSF Railway. Additionally, Texas A&M University is investing $1.5 billion in a new urban campus near the hotel, while Texas Christian University, with an enrollment of nearly 12,400, is located within a 10-minute drive.

The acquisition of this Fort Worth ground lease, on behalf of CS1031 Zero Coupon DFW Hospitality, is the latest of multiple new offerings Capital Square has launched in the third quarter of 2025.

About Capital Square
Capital Square is a vertically integrated, national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges, qualified opportunity zone funds for tax deferral and exclusion and a real estate investment trust (REIT). The company is also an active developer and manager of multifamily communities. Since 2012, Capital Square has completed more than $7.9 billion in transaction volume. Its mixed-use development projects total over 2,000 apartment units with a total development value in excess of $800 million, and Capital Square Living, the firm's property management division, oversees more than 13,000 apartments across multiple states. Capital Square's related entities provide a range of services – including due diligence, acquisition, loan sourcing, property/asset management and disposition – for a growing number of high-net-worth investors, private equity firms, family offices and institutional investors. The company has been recognized by Inc. 5000 as one of the fastest-growing private companies in the nation for nine consecutive years. Learn more at CapitalSq.com.

Disclosure
Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multifamily properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to sell any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses. FINRA Broker Check link: https://brokercheck.finra.org/.

SOURCE Capital Square