CS1031 Houston Memory Care, DST
Long-Term Absolute Net Lease with Personal Guarantees: New 15-year lease with 1.75% annual rent escalations. Absolute net lease – tenant is responsible for all expenses, including taxes, insurance, maintenance, repairs and capital improvements Village Green owners personally guarantee entire term of lease.
Newly Constructed: Completed in June of 2018, the property was meticulously designed to create for a comforting, home-like environment.
Excellent Location: Located near several dense residential developments, including Gleannloch Farms subdivision, which surrounds the facility with over 3,500 homes. In a 5-mile radius, the population is over 245,000, with average household income of approximately $110,000. Spring, Texas is part of the Houston MSA, the fifth largest metro area in the country.1
Serving a Growing Demand: The 65+ age demographic will increase from 13% of the US population in 2010 to approximately 20% by 2030.2 The U.S. population requiring assisted living or memory care is expected to increase from 1.5 million in 2017 to 11 million over the next 10 years.3
Tax Free State: Texas does not have an income tax. Investors will not pay Texas income taxes.
1 EDGE Capital Markets Study, a selling real estate brokerage and advisory firm
2 https://www.ioaging.org/aging-in-america
3 http://www.gardenofpalms.com/blog/view/1149/assisted-living-and-memory-care-demand-increasing-quickly-in-the-united-states
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Houston Memory Care, 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 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 Texas.
- 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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LocationSpring (Houston MSA), TX
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Overview
A 10,000-square-foot, Class A memory care facility (16 beds)