Capital Square Buys Medical Office Building Near Raleigh in All-Cash/No Debt DST

Capital Square 1031, a sponsor of replacement property for Section 1031 exchanges, has purchased a newly-constructed medical office building located in the Raleigh suburb of Louisburg, North Carolina. The building is 100 percent leased to an affiliate of Fresenius Medical Care, a global provider of dialysis products and services.

Located at 935 North Main St., the 8,200-square-foot, single-story building was built-to-suit for Fresenius as a dialysis clinic. The company took occupancy of the property in October 2016 and leases it on a double net basis for a base term of 15 years, plus renewal options.

“We are pleased to add this medical office building to our growing portfolio of assets under management, which now includes 17 medical office buildings, and has a total value of approximately $571 million, based on investment cost,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “These clinics are operated by a strong tenant, whose parent company, Fresenius Medical Care AG & Co. KGaA, reported a net revenue of approximately $16.7 billion for fiscal year 2015.”

The medical office building was acquired on an all-cash, no debt basis as part of a Delaware statutory trust offering, CS1031 Louisburg MOB, DST.

Rogers added, “This is Capital Square’s 36th DST offering and the third all-cash, no debt DST offering, which is a fairly new phenomenon for 1031 exchange investors that prefer a debt-free replacement property.”

Listed on both the Frankfurt Stock Exchange (DAX: FME) and New York Stock Exchange (NYSE: FMS), Fresenius 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.

Capital Square 1031 sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The firm provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition for high net worth investors, private equity firms, family offices and institutional investors. As of January 26, 2017, the firm oversees a national portfolio of 57 real estate assets valued at approximately $571 million (based on investment cost).

Click here to visit the Capital Square 1031 directory sponsor page.