Capital Square 1031 Completes DST Offering of a Medical Portfolio in Southern California
LOS ANGELES (Oct. 15, 2019) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today that CS1031 So Cal MOB, DST, comprised of three medical facilities located in Pasadena, Rancho Mirage and Azusa, California, has been fully subscribed by Section 1031 exchange and other investors.
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 dominates as a favorable and recession-resistant asset class,” said Louis Rogers, founder of chief executive officer of Capital Square. “This portfolio was purchased primarily for Section 1031 exchangers as replacement property for another Capital Square DST offering that went full-cycle when the property was sold. This offering provides investors with ownership of high-quality, net leased medical real estate in premier Southern California locations, an opportunity that most investors would not have on their own.”
The leases are 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.
“The facilities are strategically located in densely populated areas, in close proximity to hospitals and other medical facilities,” said Whitson Huffman, senior vice president and head of acquisitions. “Capital Square’s acquisition team negotiated favorable, 15-year absolute net leases, guaranteed by a quality tenant, further adding to value to the investment.”
Since inception, Capital Square has acquired 86 real estate assets for approximately 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Capital Square has completed over $1.5 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. Capital Square’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense’s list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” and “Fantastic 50” reports. To learn more, visit www.CapitalSquare1031.com.
Disclaimer: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing.