Capital Square 1031 Fully Subscribes DST Offering of New Memory Care Facility Purchased on an All-Cash, No Debt Basis
HOUSTON (Jan. 30, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today that CS1031 Houston Memory Care II, DST, has been fully subscribed by 17 Section 1031 exchange investors. The Reg. D private placement investment offering raised approximately $4.9 million in equity.
The offering is comprised of a new, 10,000-square-foot Class A memory care facility near Houston that was acquired in an all-cash transaction, with no mortgage debt.
“There is a shortage of specialized medical facilities for patients with severe memory issues, such as Alzheimer’s,” said Louis Rogers, founder and chief executive officer. “Because the need for memory care is not correlated to the general economy, medical properties such as this have proven to be recession resistant. Capital Square’s medical properties are very popular among 1031 exchange and other investors seeking a recession-resistant, stable investment. Moreover, this offering was structured on an all-cash, no debt basis, for investors who do not need or want debt for their Section 1031 exchange, thereby removing the mortgage repayment risk.”
Located at 2050 W. Lake Houston Parkway in Kingwood, Texas, and completed in March 2019, the newly constructed facility includes 16 beds and is designed to create a home-like setting for residents. Under its absolute net lease to Village Green Alzheimer’s Care Home, an operator of five memory care facilities in Greater Houston, the tenant is responsible for all expenses, including structure, maintenance and repairs.
“This facility is located in a prosperous submarket of Houston that is enjoying strong income and population growth, added Rogers. “Additionally, Texas does not have a state income tax, which benefits investors. The location of the newly-constructed medical property coupled with the all-cash, no mortgage basis made this offering very desirable for investors.”
Since inception, Capital Square has acquired 101 real estate assets for over 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Capital Square has completed more than $1.85 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 multifamily 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.
