Medical office building in Merrick trades for $11M in DST deal
July 1, 2019
Capital Square 1031, a national real estate investment and management company, announced last week the $10.5 million sale of a fully-leased, 18,000-square-foot medical office building in Merrick. Glen Allen, Virginia-based Capital Square specializes in so-called 1031 exchanges, a real estate transaction that allows an investor to defer capital gains taxes if they use the proceeds from the sale of one property held for more than a year to acquire a second property within 180 days. Capital Square sponsors Delaware Statutory Trusts, or DSTs, a mechanism used by 1031 exchange investors. The property at 1728 Sunrise Highway in Merrick was bought by Capital Square’s DST investors for $7 million in 2014, giving them a nearly 18 percent annualized return on their investment, Capital Square said. The Real Deal reported in late May on Capital Square’s sale of a 37,500-square-foot building in Southern California fully leased by a 24 Hour Fitness.