Capital Square 1031, a real estate investment and management firm specializing in Delaware statutory trust offerings, has launched a Regulation D private placement offering, CS1031 So Cal MOB DST, comprised of three medical office buildings located in Pasadena, Rancho Mirage, and Azusa, California.
The offering is seeking up to $10.7 million in total equity from accredited investors and has a minimum investment of $25,000. The portfolio includes a 23,700-square-foot building in Pasadena, a 7,500-square-foot building in Rancho Mirage, and an 11,300-square-foot building in Azusa.
“This DST investment is a prime example of Capital Square’s ability to source and sponsor well-located, recession-resistant medical buildings across the nation,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “We are pleased to add these properties to our growing investment portfolio and to offer investors the opportunity to own high-quality, net leased medical office buildings in Southern California.”
This latest offering comes on the heels of Capital Square launching three other DST offerings in recent weeks, including CS1031 Midwest Dialysis DST, CS1031 Hickory Creek Apartments DST, CS1031 Houston Memory Care II DST.
“Medical real estate continues to be a desirable asset class due to favorable economic and demographic trends, including a projected increase in healthcare spending of 5.5 percent per year between 2018 and 2027,” said Ware Smalley, acquisitions associate. “These assets are positioned for long-term success due to their high-profile locations in Southern California, high traffic counts, dense populations and excellent proximity to hospitals and other medical facilities.”
All properties in the portfolio are 100-percent leased for 15 years on an absolute net lease basis. Each lease is guaranteed by Synovation Medical Group, a pain management practice consisting of over 60 medical practitioners and 18 facilities located throughout Southern California.
As of the close of this acquisition, Capital Square has acquired 82 properties for approximately 1,600 investors seeking replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
Capital Square 1031 sponsors 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. Since inception, the firm has sponsored 58 DST programs and has completed more than $1.2 billion in transaction volume.