KISSIMMEE, FL – May 26, 2026 – In one of the nation’s fastest-growing corridors, a convergence of explosive population growth and soaring government-imposed development fees is creating a unique and potentially lucrative window for real estate investors. Capital Square, a national real estate investment sponsor, is moving to capitalize on these conditions with the launch of CS1031 Cacema Townhomes, DST, a $41.85 million offering for a newly built, 176-unit townhome community in the Orlando suburb of Kissimmee.
The investment vehicle, a Delaware statutory trust, is tailored for accredited investors, particularly those seeking to defer capital gains taxes through a Section 1031 exchange. It enters the market at a critical moment, just as Osceola County prepares to implement dramatic increases in development fees that are expected to significantly curtail new housing construction.
Adding to its appeal in a turbulent financial climate, the offering features a locked-in interest rate of 5.04%. “Interest rates have been exceptionally volatile lately,” noted Louis Rogers, founder and co-chief executive officer of Capital Square. “Therefore, Capital Square locked the interest rate at 5.04% on Cacema Townhomes. With favorable debt in place, the DST offering is an excellent choice for exchangers who need debt on their replacement property to satisfy the Section 1031 debt requirement.”
A Region Bursting at the Seams
At the heart of this investment strategy is the unrelenting demographic boom transforming Central Florida. Osceola County, where Kissimmee is the county seat, stands as a testament to this growth. It was the 10th fastest-growing county in the nation between 2010 and 2024, with its population surging by 70% during that period. The Orlando Economic Partnership projects this population will more than double by 2040. More recent data shows the county added nearly 21,000 residents between 2023 and 2024 alone, a 4.7% annual increase.
This influx of new residents is fueling intense demand for housing, particularly for larger, family-oriented rental units that are in short supply. The Cacema Townhomes community directly addresses this demand, offering modern three- and four-bedroom floor plans complete with attached garages, private entries, and semi-private backyards—features that mimic the single-family home experience that many new residents seek.
The property’s strategic location amplifies its appeal. It is situated within walking distance of major retail centers and is a short drive from Central Florida’s economic powerhouses, including Walt Disney World, Orlando International Airport, and the burgeoning Universal Epic Universe theme park. Furthermore, the community is just 15 minutes from NeoCity, a 500-acre technology district focused on STEM fields that is attracting high-wage jobs and a skilled workforce to the submarket.
The Rising Cost of Building in Paradise
While demand is soaring, the pipeline for future supply is facing a significant bottleneck. In a move designed to make “growth pay for itself,” the Osceola Board of County Commissioners approved staggering increases to mobility impact fees for new construction, set to take effect in June 2025. For townhomes, the one-time fee will skyrocket by 123%, jumping from $7,754 to $17,312 per unit. Similar increases will affect apartments and single-family homes, fundamentally altering the financial viability of future development projects.
This policy is widely expected to act as a brake on new construction, creating a high barrier to entry for potential competitors. “Osceola County’s recent decision to raise impact fees on new townhome construction by more than 81% will constrain future supply in the submarket,” explained Whitson Huffman, co-chief executive officer and chief investment officer of Capital Square. “Established communities like Cacema Townhomes stand to benefit from reduced competition at a time when demand for larger floor plans remains strong. Tightening supply across the region should support rent growth and occupancy stability.”
This impending supply constraint positions newly constructed and recently delivered assets like Cacema Townhomes in an exceptionally strong position. With fewer new projects on the horizon, existing properties are poised to capture the unabated housing demand from the region’s continuous population growth.
A Haven for Tax-Deferred Investments
Against this backdrop of high demand and limited supply, the structure of the Cacema Townhomes offering provides a strategic solution for a specific class of investors. Delaware Statutory Trusts have become a popular tool for individuals and entities completing Section 1031 exchanges, allowing them to reinvest proceeds from a sold property into a professionally managed, institutional-quality asset while deferring capital gains taxes.
The locked 5.04% interest rate is a crucial feature, providing a level of certainty and stability that is rare in today’s market. It directly addresses a key challenge for 1031 exchangers: replacing the debt from their previous property to avoid tax liabilities. The favorable, fixed-rate debt simplifies this process and makes financial projections more reliable.
The property itself is designed to be a top-tier rental community. Beyond the spacious interiors with granite countertops and stainless steel appliances, residents have access to a suite of resort-style amenities. These include a heated pool, a 24-hour fitness center, a clubhouse, a lakeside firepit lounge, walking trails, two fenced dog parks, and EV charging stations—all features that command premium rents and attract long-term tenants.
The market for these types of units is already tight. Research indicates that only one other townhome community currently operates in the immediate submarket, and competition offering four-bedroom units is virtually nonexistent. With a limited number of vacant three- and four-bedroom units available across the area, the Cacema Townhomes community enters a market with significant pent-up demand, further solidifying its investment thesis.