Buildings are 100 percent leased for 15 years to local operators of Fresenius Medical Care, an industry-leading provider of dialysis services and products+
Capital Square 1031, a leading real estate investment and management firm specializing in Delaware statutory trust offerings, announced today its acquisition of a portfolio of nine medical office buildings located in five states. Each property is 100 percent leased to Fresenius Medical Care, the world’s leading provider of dialysis services and products.
“This is a diversified portfolio of well-located medical clinics with new 15-year net leases guaranteed by Fresenius Medical Care Holdings, an investment-grade company,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “We believe that medical real estate is a stable and recession-resistant asset class. This healthcare-related portfolio is an attractive opportunity for investors seeking a safe investment because dialysis is a necessary and recurring medical treatment for more than 2.5 million Fresenius patients worldwide. By expanding Capital Square’s relationship with Fresenius, we are able to help a growing number of investors gain access to medical properties using the DST structure.”
Located in Texas, Tennessee, New York, Michigan and Mississippi, the portfolio includes the following properties*:
- 5000 Campus Dr., a 10,640-square-foot building in Fort Worth, Texas,
- 9449 Grogans Mill Road, a 6,865-square-foot building in The Woodlands, Texas,
- 825-833 Dalworth St., a 9,150-square-foot building in Grand Prairie, Texas,
- 222 E. Sinton St., an 8,000-square-foot building in Sinton, Texas,
- 3600 Netherland Inn Road, a 7,028-square-foot building in Kingsport, Tennessee,
- 113 E. C Thurmond Cove, a 4,600-square-foot building in Martin, Tennessee,
- 220 Crystal Run Road, a 10,000-square-foot building in Middletown, New York,
- 5205 McAuley Dr., a 7,800-square-foot building in Ypsilanti, Michigan, and
- 241 Meadowlane St., a 3,215-square-foot building in Eupora, Mississippi.
“With approximately 18 percent of the U.S. gross domestic product, as reported by the Centers for Medicare and Medicaid Services, and resistance to economic downturns, healthcare has proven to be a growing industry and a premier real estate asset class,” Rogers added.
As of May 2, 2018, Capital Square 1031 oversees a growing national portfolio of 67 real estate assets valued at approximately $670 million (based on aggregate investment cost).
Fresenius Medical Care Holdings, Inc. is a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA (Fresenius), which is listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS). The company is engaged in providing kidney dialysis services and clinical laboratory testing; manufacturing and distributing products and equipment for kidney dialysis treatment; and providing other medical ancillary services. During the fiscal year 2016, Fresenius posted revenues of approximately $17.9 billion. The company also cared for more than 308,000 dialysis patients in 3,624 proprietary clinics located in more than 45 countries worldwide. Fresenius operates more than 40 production sites, which makes it the leading provider of dialysis products, including dialysis machines, dialyzers and disposable accessories.
*Approximate square footage
About Capital Square 1031
Capital Square 1031 is a national real estate investment and management company. The firm sponsors real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors. Capital Square provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. As of May 2, 2018, the firm oversees a growing national portfolio of 67 real estate assets valued at approximately $670 million (based on investment cost). In August 2017, Capital Square ranked 485th on the Inc. 5000 list of fastest growing companies, making it the top-ranking Richmond, Virginia-area company, with 925 percent three-year growth. In 2016, Capital Square was ranked as the second fastest growing company in the Richmond, Virginia area by Richmond BizSense. To learn more, visit www.CapitalSquare1031.com.
Disclosures
Investing in real estate involves significant risk and is suitable only for investors who have adequate financial means, desire a relatively long-term investment, who will not need immediate liquidity from their investment and can afford to lose their entire investment. There are various risks associated with owning, financing, operating, and leasing commercial properties. If the tenant does not renew or extend the lease, or terminates or defaults on the lease, the operating results of the Property could be adversely affected by the loss of revenue and Beneficial Owners could lose the benefits of Section 1031. Other risks include potential environmental conditions at the property, changes in economic conditions, changes in the investment climate for real estate investments, new competition, changes in the demand from competing properties, changes in local market conditions, changes in lease-up periods, changes in real estate tax rates and other operating expenses. There can be material tax consequences and prospective investors should consult their own tax advisors to evaluate the tax consequences of a DST interest. This is neither an offer to sell nor a solicitation of an offer to buy a DST interest. Offers are made solely pursuant to the Confidential Private Placement Memorandum. Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square 1031 and WealthForge Securities are not affiliated.
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