CS1031 SE MOB Portfolio, DST

1031 Exchange & DST

Long-Term Net Leases Both buildings feature 15-year, absolute net leases with four, five-year renewal options and 2% annual rental increases.

The tenants are responsible for operating expenses, insurance, real estate taxes and capital improvements. Also, the tenants will post a letter of credit for their security deposit that will initially cover more than eight months of rent.

Well-Located Medical Assets Both properties are located in the Memphis Metro Area near the campuses of Memphis’ top two ranked hospital systems.¹ The Memphis property is located adjacent to the 479-bed Saint Francis Hospital, which is under definitive agreement to be acquired by the top ranked healthcare system in Memphis, Methodist Le Bonheur Healthcare.^{1, 2} The Southaven property is approximately 16 miles away from the medical buildings surrounding the 339-bed Baptist Memorial Hospital-DeSoto. Merger of Established Area Practices OrthoSouth was formed by the merger and rebranding of three orthopedic practices: Memphis Orthopaedic Group, OrthoMemphis and Tabor Orthopedics, which combine for over 150 years of orthopedic care in the Memphis area. The merged practice features eight clinics, two surgery centers and approximately 455 employees.³ Essential Medical Assets Medical properties benefit from multiple positive forces, including an aging population, increased medical insurance coverage and cost-reduction strategies by insurance companies favoring outpatient facilities.⁴

National health spending is projected to reach $6.2 trillion by 2028. National health expenditures are projected to grow 1.1 percentage points faster than gross domestic product per year on average between 2019 and 2028. The health share of the economy is projected to rise from 17.7% in 2018 to 19.7% in 2028.⁵

Sources: 1. https://health.usnews.com/best-hospitals/area/memphis-tn

2. www.methodisthealth.org/newsroom/news-article/methodist-le-bonheur-healthcare-entersinto-agreement-to-purchase-saint-francis-hospitals-and-operations/

3. https://orthosouth.org

4. https://ulidigitalmarketing.blob.core.windows.net/emergingtrendspdfs/ ET2020FallMeeting.pdf

5. www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/NHE-Fact-Sheet

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 SE MOB 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 Tennessee and Mississippi.
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.