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CS1031 MOB TX VI, DST

Long-Term Net Leases Both buildings feature 15-year triple net leases with 2% annual rent escalations and two five-year renewal options. The tenant is responsible for all taxes, insurance, maintenance and repairs. Tax-Free State Texas does not have an income tax. Investors will not pay state income taxes on their investment in this offering.

National Operator The properties are operated by Covenant Physician Partners, a leading surgical and physician practice management company backed by KKR & Co. Inc. Covenant partners with physicians to provide value add financial and operational services to enhance business and clinical operations. The company brings each partnership the resources of a national physician services firm and the integration of over 1,700 associates and physicians.1 High-Quality, Well-Located Assets The high-quality, Class A properties were constructed in 2015 and 2018. They are located in the medical hub of Corpus Christi, which provides excellent accessibility for patients and physicians.2

Medical Asset Class Purpose-built medical office properties are experiencing increased demand due to aging population, increased number of people with medical insurance, cost reduction strategies favoring outpatient care, and limited development pipeline.3

Texas Eye Care Network Precision Surgery Center 5721 Esplanade Drive, Corpus Christi, Texas 78414. The Class A, multi-specialty ambulatory surgery center is situated on 1.08 acres of land and is comprised of 9,228 square feet of space. Built in 2015, the facility features two operating rooms, two procedure rooms and nine pre- and post-operating bays. The ambulatory surgery center includes 47 parking stalls and is leased to Texas Precision Surgery Center, LLC, one of the top performing ambulatory surgery centers in the Corpus Christi market.2

Texas Eye Care 6002 S. Staples Street, Corpus Christi, Texas 78413. The Class A ophthalmic clinic is situated on 1.501 acres of land and is comprised of 24,264 square feet of space. Built in 2018, the facility features 16 exam rooms, seven work-up rooms and five diagnostic rooms. The facility includes 93 parking stalls and is leased to Texas Eye Care Network, one of the highest performing comprehensive ophthalmic practices in the Corpus Christi market.2 Health spending increased by 4.6% in 2018 to reach $3.6 trillion, accounting for 17.7% of gross domestic product that year.4

Sources: 1. http://covenantphysicianpartners.com/

2. ERE Healthcare Real Estate Advisors

3. Emerging Trends in Real Estate

4. Centers for Medicare & Medicaid Market information is provided for educational purposes and is general in nature. It may not predict the performance of the property.

Contact your financial advisor for more information and up-to-the-minute details on this offering.

Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 MOB TX VI, 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 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.
  • Location
    Corpus Christi, TX
  • Overview

    A two property medical portfolio in Texas

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