CS1031 Diversified Dialysis Portfolio, DST
Long-Term Investment in Healthcare, a Stable Asset Class. New 15-year lease for each property. Annual CPI rental increases, with 2% cap, provides a hedge against inflation. Each lease is guaranteed by Fresenius Medical Care Holdings, Inc., the premier healthcare company focused on delivering the highest quality care to people with renal and other chronic conditions; with an investment-grade credit rating.
Fresenius Medical Care Holdings, Inc., the lease guarantor, has an investment-grade Baa3 credit rating from Moody’s, with a stable outlook. FMCH is a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA, a German partnership limited by shares. Positioned for Stability Through Necessary Medical Care Fresenius provides products and services for people with chronic kidney failure, which affects millions worldwide. More than 2.5 million patients regularly undergo dialysis therapy. Fresenius has completed more than 42.7 million dialysis treatments in the Americas, and is the world’s leading provider of products and services for people with chronic kidney failure. Resilient Asset Class Medical real estate has proven to be a recession resistant asset class during economic downturns. National healthcare expenditure per capita increased in each year of the previous recession.
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 Diversified Dialysis Portfolio, 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 California.
- 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.
The DST is acquiring a portfolio of properties. The portfolio will exceed the three properties that may be identified by an exchanger under Section 1031. For exchangers who do not qualify for one of the other identification rules, the DST should be acquired within 45 days of sale of their relinquished property to avoid the need to identify. FOR SALES AND OTHER INFORMATION, CONTACT Capital Square 1031, 10900 Nuckols Road, Suite 200, Glen Allen, VA 23060 Toll Free: (877) 626-1031 Telephone: (804) 290-7900 Fax: (804) 290-0086 www.CapitalSquare1031.com
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LocationKingsport, TN
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Overview
9 medical office buildings, 100% leased for 15 years to local operators of Fresenius Medical Care, which has an industry-leading network of over 2,200 dialysis and other medical service facilities across the U.S.
