Capital Square 1031 Launches DST Offering of Three Southern California Medical Office Buildings with Guaranteed, Absolute Net Leases
LOS ANGELES (May 9, 2019) – Capital Square 1031, a leading real estate investment and management firm specializing in Delaware statutory trust (DST) offerings, announced today the launch of CS1031 So Cal MOB, DST. The Reg. D private placement investment is comprised of three medical office buildings located in Pasadena, Rancho Mirage and Azusa, California.
“This DST investment is a prime example of Capital Square’s ability to source and sponsor well-located, recession-resistant medical buildings across the nation,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “We are pleased to add these properties to our growing investment portfolio and to offer investors the opportunity to own high-quality, net leased medical office buildings in Southern California.”
CS1031 So Cal MOB, DST is seeking up to $10,728,000 in total equity from accredited investors. The offering has a minimum investment of $25,000.
Located throughout Southern California, the portfolio includes:
• 1017-1035 S. Fair Oaks Ave., a 23,687-square-foot building in Pasadena,
• 69780 Stellar Drive, a 7,500-square-foot building in Rancho Mirage, and
• 830 S. Citrus Ave., an 11,331-square-foot building in Azusa.
“Medical real estate continues to be a desirable asset class due to favorable economic and demographic trends, including a projected increase in healthcare spending of 5.5 percent per year between 2018 and 2027,” said Ware Smalley, acquisitions associate. “These assets are positioned for long-term success due to their high-profile locations in Southern California, high traffic counts, dense populations and excellent proximity to hospitals and other medical facilities.”
All properties in the portfolio are 100-percent leased for 15 years on an absolute net lease basis. Each lease is guaranteed by Synovation Medical Group, a pain management practice consisting of over 60 medical practitioners and 18 facilities located throughout Southern California. The company provides a range of pain management services, including aquatic therapy, behavioral medicine, neuromodulation, clinical research, neurodiagnostic testing, physical therapy and regenerative medicine, among others.
According to the National Institutes of Health, pain is the most common reason that Americans access the healthcare system. NIH reports that pain affects more Americans than diabetes, heart disease and cancer combined.
As of the close of this acquisition, Capital Square has acquired 82 properties for approximately 1,600 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
Capital Square 1031 is a national real estate investment and management company that sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The company acquires multifamily properties for growth, necessary medical properties for stable income, and other real estate investments that have the potential to provide exceptional risk adjusted returns. By acquiring a portfolio of DSTs, investors are able to diversify and reduce the risk they would face with a single asset investment. Capital Square aims to provide real estate investors greater access to quality investments and financial planning tools to better manage and mitigate risk.
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. Since inception, the firm has sponsored 58 DST programs and has completed more than $1.2 billion in transaction volume. To learn more, visit www.CapitalSquare1031.com.