CAI Investments Launches All-Cash DST With Acquisition of S.C. Industrial Facility
Las Vegas-based CAI Investments LLC – an asset manager, developer, and private placement sponsor – recently acquired an industrial facility in Honea Path, S.C., in what it called a “strategic sale-leaseback transaction.” CAI is utilizing the 96,000 square-foot chemical manufacturing plant to syndicate a Delaware statutory trust offering for 1031 exchange investors.
The purchase price for the facility was not disclosed, but the company expects to raise nearly $22.3 million through the all-cash Manufacturing Essential Asset II, DST.
The facility, currently operated by U.S. Medical Chemical Company, a subsidiary of U.S. Medical Glove Company, represents the only polyisoprene manufacturing operation in the United States – employing expert personnel in engineering, chemistry, and machine technology. The chemical company will continue to operate the facility, ensuring the ongoing production of this essential material used in non-latex surgical gloves.
As CAI Investments launches its 506(c) DST offering, Malcolm Burt, vice president of sales, highlighted the firm’s commitment to providing investment opportunities that align with current market needs.
“We recognize the demand for investors seeking to execute a 1031 exchange without the burden of non-recourse debt. While such offerings are available in the market, we believe that investing in industrial properties offers significant diversification benefits,” said Burt.
Christopher Beavor, founder of CAI Investments, also emphasized the importance of the South Carolina acquisition. “We value our partnership with USMG and fully support their mission to re-establish critical [personal protective equipment] manufacturing in the United States.”
“This acquisition not only strengthens our portfolio of mission-critical manufacturing DSTs but also reinforces our commitment to fostering domestic industrial capabilities. We look forward to expanding our portfolio with more such strategic assets in the future,” Beavor concluded.
Earlier this summer, CAI secured a $93 million extension loan for the Westin Hotel in Tempe, Ariz., quelling rumors of a future foreclosure sale and positioning the property for potential enhancements. The development of the hotel had been partially funded through nearly $25 million raised from accredited investors by CAI Tempe Hotel Partners LLC, a private placement offering launched by CAI in 2017.
CAI Investments is a real estate development company specializing in the financing, development, and management of commercial properties across key national markets.
Click here to visit The DI Wire directory page.
