Capital Square 1031 Fully Subscribes All-Cash DST Offering of a Triple Net Leased Medical Facility in Augusta, Georgia
Augusta, Ga. (July 27, 2020) – Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange and other accredited investors, announced today that CS1031 Augusta MOB, DST, a Regulation D private placement, has been fully subscribed. The offering is comprised of a 30,548-square-foot orthopedic clinic in Augusta, Georgia, that was acquired by the DST in an all-cash, no debt, transaction.
“This is another successful DST offering for investors seeking tax-deferral under Section 1031 of the Internal Revenue Code and other investors pursuing stable returns and capital appreciation,” said Louis Rogers, founder and chief executive office of Capital Square. “Medical facility investments have proven to be recession-resistant over time.”
Located at 1706 Magnolia Way, the facility is comprised of an orthopedic clinic that has 18 exam rooms, a dual X-ray suite, designated waiting areas, a physical therapy center, an MRI suite and space to expand for practice growth. Constructed in 2009 and situated on 1.88 acres of land, the building is 100% leased on a triple net basis for 12 years to Champion Orthopedics. The comprehensive orthopedic practice provides orthopedic and musculoskeletal care; specialized sports medicine treatment; orthopedic surgery; physical therapy and rehabilitation services; and diagnostic imaging.
Rogers added, “Medical care is considered a ‘necessary service’ that continues to operate even during an unprecedented pandemic. This is a highly desirable offering that combines a net-leased medical facility, one of the most desirable asset classes, with an all-cash acquisition for investors who do not need or want debt.”
According to the Centers for Medicare and Medicaid Services, national health spending is projected to reach $6.2 trillion by 2028. Additionally, this property benefits from the top employers and economic drivers of Augusta. This includes Fort Gordon, a U.S. Army installation with a predominant and growing focus on cyber-warfare and cyber-defense that has approximately 31,874 military, civilian and contractor employees; Augusta’s Medical District, with more than 25,000 healthcare employees; and Augusta University, with an enrollment of more than 9,000. *
“The strong level of interest in CS1031 Augusta MOB, DST demonstrates the growing investor demand for quality medical real estate,” said Whitson Huffman, chief strategy and investment officer. “This well-located property has an attractive long-term net lease and a strong tenant providing necessary medical services, which differentiates it from other all-cash real estate offerings.”
Since inception, Capital Square has acquired 111 real estate assets for approximately 2,200 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 capital appreciation.
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 more than $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.