CS1031 Carolina Tech, DST
Newly-Constructed World Headquarters: CompuCom recently relocated its corporate headquarters to this modern, Class A office building. The facility’s state-of-the-art design and features provide a showcase for clients and helps CompuCom hire talented IT professionals.
Long-Term Net Lease: The triple net lease features nearly 14 years of remaining term with 2.0% annual rental increases starting in 2020.
Digital Campus: This “digital campus” features CompuCom’s proprietary IoT (Internet of Things) system to connect, automate and control all electric systems and devices within the building. The technology provides operating efficiencies which allow CompuCom to operate at approximately 16% less expense than their previous headquarters.1
Exclusive IoT System: IoT (Internet of Things) refers to devices that are connected to the internet, producing limitless opportunities for business and society. The IoT is a giant network of connected “things,” which even includes people. There are estimates that IoT will add $10-$15 trillion to global GDP in the next 20 years and Gartner, an analyst firm, states by 2020 there will be over 26 billion connected devices.2
Excellent Location: CompuCom chose this location to be closer to clients and a growing pool of IT professionals. The local Fort Mill submarket has been a popular destination for corporate relocations due to excellent South Carolina incentive packages, access to downtown Charlotte and excellent quality of life.3
Office Depot: CompuCom is a wholly-owned subsidary of Office Depot, Inc. (NASDAQ:ODP; Moody’s:Ba3). Award-Winning Design: 2018 Office Project of the Year.4
Sources: 1 https://www.compucom.com/sites/default/files/compucom-digital-campus_case-study-final.pdf
2 Forbes
3 Cushman & Wakefield, a commercial real estate brokerage and advisory firm
4 Charlotte Business Journal
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Carolina Tech, 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 South Carolina.
- 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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LocationFort Mill (Charlotte Metro), SC
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Overview
A three-story, 151,503-square-foot Class A corporate headquarters