Capital Square 1031 Fully Subscribes DST Offering of Fresenius Dialysis Clinic Near Chicago
CHICAGO (May 18, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today that CS1031 Midwest Dialysis, DST has been fully subscribed.
CS1031 Midwest Dialysis, DST is a Reg. D private placement investment offering comprised of a 9,000-square-foot dialysis clinic located in East Chicago, Indiana, approximately 24 miles from Chicago, Illinois. Operated by Fresenius Kidney Care, the building was acquired for the DST in an all-cash transaction, with no mortgage debt. This is Capital Square’s 16th dialysis clinic in a DST program primarily for investors seeking tax deferral by structuring an exchange under Section 1031.
“Capital Square is pleased to add the Midwest Dialysis facility to its growing portfolio of medical properties across the nation,” said Louis Rogers, founder and chief executive officer. “All of Capital Square’s dialysis clinics are performing on plan – 100% occupied with the rent paid on schedule – in spite of the COVID-19 pandemic that has adversely impacted other real estate investments. This confirms Capital Square’s thesis that medical properties are ‘essential’ and withstand stress from economic issues, including a global pandemic, much better than non-essential properties.”
Located at 4016 Main St. and constructed in 2018, the medical office building is 100% leased for 15 years on a double-net basis. The lease is guaranteed by Fresenius Medical Care Holdings Inc., a wholly- owned subsidiary of Fresenius Medical Care AG & Co. KGaA. The company is listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS). Fresenius is engaged in providing kidney dialysis services and clinical laboratory testing; manufacturing and distributing products and equipment for kidney dialysis treatment; as well as providing other medical ancillary services. During the fiscal year 2019, Fresenius generated revenues of approximately €17.4 billion, equal to more than $18.8 billion. The company also cared for more than 345,000 dialysis patients in 3,994 proprietary clinics in 50 countries worldwide. Fresenius operates more than 45 production sites in 20 countries, which makes it the leading provider of dialysis products, including dialysis machines, dialyzers and disposable accessories.
“The property’s long-term lease with an investment-grade lease guarantor, Fresenius Medical Care Holdings, helps ensure stability and long-term cash flow for our investors,” said Whitson Huffman, senior vice president and head of acquisitions. “The offering was structured on an all-cash, no-debt basis, removing the mortgage repayment risk and ultimately positioning the asset as an even greater investment in the current economic environment.”
The facility is strategically located approximately 20 minutes from downtown Chicago and less than a mile from St. Catherine Hospital. Considered a pioneer in the industry for bringing the first x-ray technology, newborn incubator and treatments for polio to the region, St. Catherine Hospital has provided the community a broad range of healthcare services since 1928.
Since inception, Capital Square has acquired 107 real estate assets for more than 2,000 investors nationwide seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking cash flow and appreciation potential.
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. To date, Capital Square has completed approximately $2 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. Diversification does not guarantee profits or protect against losses.