CS1031 Colorado Power, DST
Growing, Technology-Focused Tenant The tenant, Advanced Energy Industries, Inc., is a global engineering firm that designs and manufactures power conversion equipment used in devices such as medical equipment, semiconductors, plasma displays and data center computing. Advanced Energy Industries, Inc. posted record quarterly sales for the third quarter of 2020, a 122.5% increase over sales from the same period the prior year.1 The company has a current market capitalization of $4.232 billion, as of February 17, 2021.2 Long-Term Triple Net Lease There are approximately 15 years of remaining term on a triple net lease with annual rental increases of 2.5%. Advanced Industries, Inc. is responsible for all lease payments.
Excellent Market for Technology Jobs Fort Collins, and the neighboring markets of Boulder and Denver, rank among the highest in the country for share of the population with a bachelor’s degree or higher.3 Advanced Energy benefits from the property’s proximity to three major universities, including Colorado State University, which has a total enrollment of more than 33,000.4 Commitment to the Location Advanced Energy has been in Fort Collins since its founding in 1981 and has continuously occupied the property since it was completed in 1987.
The company recently renewed its lease as part of a planned multimillion-dollar transformation of the facility into a state-of-the-art research and development campus.5 Expertise in Diversified Industries Advanced Energy competes in the high-tech marketplace across a variety of industries, providing diversified revenue streams with multiple growth opportunities. The company’s products are used in multiple industries such as medical, telecommunications, data management, industrial electronics, solar and others.6
5. https://www.advancedenergy.com/articles/news/ advanced-energy-announces-plans-to-expand-in-fort-collins-and-denver/
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Colorado Power, 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 Colorado.
- 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.
LocationFort Collins, CO
An advanced energy R&D and industrial campus