Capital Square 1031 Acquires Medical Office Building with Long-Term Triple Net Lease in Greater Phoenix
The acquisition is on behalf of a DST investment offering that seeks to raise $5.817 million in equity from accredited investors
PHOENIX (August 3, 2021) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of a 15,286-square-foot medical office building in the Phoenix suburb of Gilbert, Arizona. The medical office building was acquired on behalf of CS1031 MOB AZ I, DST, a Reg. D private placement.
“Medical properties have proven to be exceptional performers over the past decade,” said Louis Rogers, founder and chief executive officer of Capital Square. “With a strong tenant, excellent location, and desirable net lease structure, this should be another successful medical DST investment for Section 1031 exchange and cash investors across the nation.”
Located at 838 West Elliot Road, the purpose-built facility is home to a growing private medical practice, Comprehensive Integrated Care, which executed a 15-year triple net lease in May 2021. Under the terms of a triple net lease, the tenant is solely responsible for the property’s operating expenses, insurance and real estate taxes.
Founded in 2013, Comprehensive Integrated Care (CIC) is a multi-specialty clinic with highly skilled endovascular specialists who perform minimally invasive procedures. CIC states that this approach offers less risk, less pain and faster recovery times than traditional surgery. Conditions including peripheral artery disease, varicose veins, and enlarged prostates can be treated with this approach. Local physicians consult with CIC specialists to provide comprehensive care for their patients.
CS1031 MOB AZ I, DST seeks to raise $5.817 million in equity from accredited investors and has a minimum investment of $50,000.
“We are experiencing a major population migration to the Phoenix area, where there is a lower cost of living, friendly government environment and better overall quality of life,” said Whitson Huffman, chief strategy and investment officer. “Comprehensive Integrated Care benefits from this location due to this growing local population that requires medical care.”
Chris Lind, senior vice president, investments in Marcus & Millichap’s Phoenix office, represented the seller in the transaction. Marcus & Millichap is a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services.
Since its founding in 2012, Capital Square has acquired 132 real estate assets for over 3,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable 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. Since 2012, Capital Square has completed more than $3 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. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the nation for four consecutive years. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Additionally, Capital Square was listed by Virginia Business on their “Best Places to Work in Virginia” report in 2019 and their “Fantastic 50” reports in 2019 and 2020. 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.