CS1031 Augusta MOB, DST
Long-Term Net Lease New 12-year triple net lease with 2% annual rent escalations and four 5-year renewal options. Tenant is responsible for operating expenses, insurance and real estate taxes. Strong Tenant Track Record Champion Orthopedics’ roots in Augusta go back to 2001 when Dr. Jewell Duncan founded predecessor practice, Sports Medicine Associates.
The primary clinic and executive offices were built in 2009 to accommodate expansion of the practice and a merger with another local orthopedic group. Serving Necessity Medical Needs Musculoskeletal conditions treated with orthopedics affect one in two American adults, greater than that of chronic heart and twice that of lung conditions.¹ Champion Orthopedics provides necessary treatment for conditions, including fractures; ligament and muscle damage; spine disorders and joint replacement, and offers advanced diagnostic imaging with digital radiography and MRI on site. Medical Asset Class Medical office properties continue to benefit from multiple positive factors, including an aging population, increased medical insurance coverage and cost reduction strategies by insurance companies favoring outpatient facilities.²
Healthcare spending in the United States increased by 4.6% in 2018 to reach $3.6 trillion and accounted for 17.7% of gross domestic product (GDP).³
Sources: 1. Bone and Joint Initiative
2. Urban Land Institute – Emerging Trends in Real Estate
3. Centers for Medicare & Medicaid Services Market information is provided for educational purposes and is general in nature. It may not predict the performance of the property.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Augusta MOB, DST offering and member FINRA/SIPC. Capital Square and WealthForge are not affiliated.
Consider the Risks: An investment in the Interests involves substantial investment and tax risks, including, without limitation, the following risks:
- Past performance is not a guarantee of future results.
- The economic success of the Interests will depend upon the results of operations of the Property. Fluctuations in vacancy rates, rent schedules, and operating expenses can adversely affect operating results or render the sale or refinancing of the Property difficult or unattractive.
- The Master Tenant’s capitalization is supported solely by the cash flow from the underlying tenant lease. The Sponsor is not under any obligation to contribute capital to the Master Tenant.
- No assurance can be given that future cash flow will be sufficient to make the debt service payments on any borrowed funds and also cover capital expenditures or operating expenses.
- No assurance can be given that Beneficial Owners of Interests will realize a substantial return (if any) on their investment or that they will not lose their entire investment in the Trust.
- The Interests are not freely transferable by the Beneficial Owners.
- There are various risks associated with owning, financing, operating, and leasing commercial properties in Georgia.
- The Interests do not represent a diversified investment.
- Beneficial Owners must completely rely on the Master Tenant to collect the rent and operate, manage, lease, and maintain the Property.
- The Beneficial Owners have no voting rights with respect to the management or operations of the Trust or in connection with the sale of the property.
- There are various conflicts of interest among the Trust, the Sponsor, the Signatory Trustee, and their Affiliates.
- The Interests are illiquid.
- There are tax risks associated with an investment in the Interests.
- There are risks related to competition from properties similar to and near the property.
- There may be environmental risks related to the property
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LocationAugusta, GA
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Overview
Medical office with long-term, triple net lease