Top1031

CS1031 Houston Memory Care II, DST

in Kingwood, TX · sponsored by Capital Square

Historical · soldSold, as reported by Capital Square · last Form D May 3, 2019Sponsor source (opens in a new tab)

CS1031 Houston Memory Care II, DST, sponsored by Capital Square, filed its first Form D with the SEC on May 3, 2019 for a $4.8 million offering. Capital Square sold the property, as reported by the sponsor.

How it ended

No public outcome found

Sold.

Sponsor document (opens in a new tab)

Capital Square has 5 active offerings on record →

Key facts

A free account shows how much of each active offering has sold and the Sponsor Grade letters.
Minimum investment
$25,000
From the Form D
Offering size
$4,876,000
Equity offered, per the Form D
Sold
$0
Form D, May 3, 2019
Investors reported
0
Form D, May 3, 2019
Selling commissions
$365,700 · 7.5% of offering
Form D Item 15; the % is our arithmetic
Financing
All cash. This offering reports no mortgage debt.
How it is financed ↓
Offered under
Rule 506(c)
May be advertised publicly. Every buyer’s accredited status must be verified.

Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →

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Ask a 1031 specialist about this recordFree. About: CS1031 Houston Memory Care II, DST. Top1031 is not a broker-dealer.

What did the Trust own?

The trust's property is a 10,000-square-foot, 16-bed memory care home at 2050 W. Lake Houston Parkway, northeast of downtown Houston, Texas. 1 Memory care is residential housing with on-site care for people living with Alzheimer's disease or other forms of dementia. Construction on the building finished in March 2019. 1

Reported location
Kingwood, TX

How was it financed, and what did it cost to sell?

Capital Square reported at the May 2019 launch that the trust bought the facility with no mortgage debt. 2 With no lender, there is no loan to refinance, no lender that could foreclose, and no mortgage to pay off in a sale.

Debt

Financing
All cash. This offering reports no mortgage debt.

Costs and terms from the Form D

Selling commissions
$365,700 · 7.5% of offering
Finders’ fees
$0
Paid to officers, directors and promoters
$81,098 · 1.6% of offering
Form D Item 16
Broker-dealers named in the Form D
1 named in the Form D
Show the firms

Individual representatives named in Item 12 are not listed.

Minimum investment
$25,000

Form D Item 15 and Item 16 amounts may be the issuer’s estimates; each percentage is Top1031’s arithmetic on two Form D figures. Item 16 can overlap Item 15, so Top1031 does not add them together. The issuer marked these amounts as an estimate.

What does the SEC record show?

A Form D, the notice an issuer sends the SEC when it sells securities privately, started the offering in May 2019. It used the rule allowing public advertising, so the trust could market openly but sell only to accredited investors, people meeting SEC income or net worth tests.

Legal Trust name
CS1031 Houston Memory Care II, DST
SEC CIK
1775412
First Form D
May 3, 2019
Latest Form D
May 3, 2019
Filings on record
1
Offered under
Rule 506(c)
May be advertised publicly. Every buyer’s accredited status must be verified.
Source filing
Read the filings on SEC EDGAR

SEC Form D filings, newest first

FiledFormOffering amountAmount sold
Form D$4,876,000
$0
EDGAR

Amounts, investor counts and minimums are as filed with the SEC on Form D. The change lines are Top1031’s arithmetic between consecutive filings; a new Form D notice starts a new count.

A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.

Common questions

What happened to CS1031 Houston Memory Care II, DST?
CS1031 Houston Memory Care II, DST is a Historical offering. Sold, as reported by Capital Square.
What does CS1031 Houston Memory Care II, DST own?
It owns a 10,000-square-foot, 16-bed memory care facility at 2050 W. Lake Houston Parkway in Kingwood, Texas, in the greater Houston area. Capital Square's January 30, 2020 release describes the building as newly built, with construction completed in March 2019.
Who is the tenant?
Village Green Alzheimer's Care Home is the tenant and operator, under an absolute net lease, according to Capital Square. Village Green's own website markets a Kingwood location at 2050 W. Lake Houston Parkway. An absolute net lease puts taxes, insurance, maintenance, repairs and capital improvements on the tenant rather than the owner.
What are the main lease terms?
Capital Square's offering page for the trust describes a new 15-year absolute net lease with annual rent escalations of 1.75%, and states that Village Green's owners personally guarantee the lease.
Does the trust carry a mortgage?
No. Capital Square announced at the May 7, 2019 launch that the facility was acquired in an all-cash transaction with no mortgage debt. An all-cash DST has no lender, so there is no loan maturity, no refinancing and no debt to repay when the property is sold.
Why does an all-cash structure matter in a 1031 exchange?
In a 1031 exchange, an investor who paid off a mortgage on the sold property generally replaces that debt with new debt or with additional cash to defer the full tax. A debt-free DST interest carries no share of mortgage debt, which changes how the exchange math works for an investor who had a loan on the old property.
Who sponsored the offering and how large was it?
Capital Square sponsored the trust, marketing it under the Capital Square 1031 name.

In the news

Sources

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DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current offering documents before investing.