CS1031 So Cal MOB
Long-Term Net Lease: New, 15-year leases at each property and 2.50% annual rental increases. Absolute net leases – zero landlord responsibilities. Each lease is guaranteed by Synovation Medical Group, comprised of 18 medical clinics and surgery centers, and over 60 medical practitioners.
Favorable Locations: The three clinics are located in high-profile Southern California locations with high traffic counts, excellent proximity to medical facilities and dense populations.
Prominent Medical Practice with Long History: Synovation Medical Group was founded by CEO Dr. Clayton Varga nearly 30 years ago and has grown to become one of the largest pain management medical groups in the country.
Serving a Pervasive Medical Need: Pain is cited as the most common reason that Americans access the health care system. Pain affects more Americans than diabetes, heart disease and cancer combined.1
Medical Asset Class: Medical real estate continues to be a favored asset class due to economic and demographic trends. Health spending is projected to grow at an annual rate of 5.5% (2018-2027), increasing to approximately 19.4% of GDP.2
Sources: 1 National Institutes of Health (NIH)
Securities offered through WealthForge Securities, LLC, the managing broker-dealer for the CS1031 So Cal MOB, 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.
LocationRancho Mirage, CA
A one-story medical office building including medical offices and a surgical area