Capital Square 1031 Completes Two Medical Office DST/1031 Exchange Offerings
RICHMOND, Va. (March 14, 2017) – Capital Square 1031 announced today that its Delaware statutory trust offerings, CS1031 Birmingham MOB, DST and CS1031 Kinston MOB, DST, each comprised of a medical office building occupied by affiliates of Fresenius Medical Care in Alabama and North Carolina, respectively, have been fully subscribed by investors.
Capital Square 1031 has closed 32 DST offerings since its founding in late 2012.
“Each of these offerings include real estate occupied by the world’s leading provider of dialysis services and products for people with chronic kidney failure, which has 2,249 dialysis clinics across North America,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “Dialysis is the life-saving process for artificially cleaning blood for patients with chronic kidney disease. The properties are well-located near doctor’s offices and hospitals, providing convenient access to patients, their caregivers and healthcare providers. We are pleased to complete these offerings and provide a growing number of investors with ownership of investment-grade, recession resistant real estate.”
CS1031 Birmingham MOB, DST acquired a newly-constructed, 8,140-square-foot medical office building that was built-to-suit for Fresenius Medical Care. Located at 3671 Roosevelt Blvd. in Birmingham, Alabama, the property is leased on a net basis for a base term of 15 years, plus extensions. Capital Square leveraged the property for exchange investors who need debt to obtain complete deferral under Section 1031 of the Internal Revenue Code.
CS1031 Kinston MOB, DST acquired a 10,880-square-foot medical office building located at 604 Airport Road in Kinston, North Carolina, a Certificate of Need state. The clinic, which is one of the company’s largest dialysis clinics in North Carolina, is a flagship location for Fresenius. Capital Square acquired the property in an all-cash (no debt) purchase for exchange investors who do not need debt to obtain deferral under Section 1031.
“A growing number of exchange investors are seeking an all-cash, no debt, replacement property,” said Louis Rogers. “An ‘all-cash’ replacement property was almost unheard of five years ago.”
Listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS), Fresenius is the world’s leading provider of products and services for people with chronic kidney failure. The company is primarily engaged in providing kidney dialysis services and clinical laboratory testing; manufacturing and distributing products and equipment for kidney dialysis treatment; and providing other medical ancillary services. During 2015, Fresenius cared for in excess of 294,000 dialysis patients in 3,418 proprietary clinics located in more than 45 countries worldwide. The company also operates more than 40 production sites, making Fresenius the leading provider of dialysis products, including dialysis machines, dialyzers and disposable accessories.
As of February 15, Capital Square 1031 oversees a national portfolio of 58 real estate assets valued at approximately $600 million (based on investment cost).
About Capital Square 1031
Capital Square 1031 is a national real estate investment and management company. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors. Capital Square provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. As of February 15, the firm oversees a national portfolio of 58 real estate assets valued at approximately $600 million (based on investment cost). In September 2016, Capital Square was ranked as the second fastest growing company in the Richmond, Virginia area by Richmond BizSense, with 274 percent annual revenue growth from 2013 to 2015. To learn more, visit www.CapitalSquare1031.com.
