Capital Square 1031, a sponsor of Delaware statutory trust offerings, has purchased a two-building, 115,627-square-foot research and development industrial campus in Fort Collins, Colorado. The property was acquired for CS1031 Colorado Power DST, a Regulation D private placement offering.
CS1031 Colorado Power DST seeks to raise $16.9 million in equity from accredited investors and has a minimum investment of $50,000. The acquisition was financed by Citigroup with a 3.87 percent fixed rate 10-year loan.
“The property has an exceptional tenant in Advanced Energy Industries, Inc., a global engineering firm with diversified revenue streams and multiple growth opportunities,” said Louis Rogers, founder and chief executive officer of Capital Square.
Advanced Energy Industries designs and manufactures power conversion equipment used in devices such as medical equipment, semiconductors, plasma displays and data center computing. The company was founded in 1981 and has occupied the property since it was constructed in 1987.
Situated on nearly 10 acres of land, the property is 100 percent leased with approximately 15 years remaining on a triple net lease with annual rental increases of 2.5 percent and two five-year renewal options.
“One of the most compelling aspects of this industrial investment property is the fact that it has been occupied by one of the leading engineering firms in the world since 1987, and which has extended their commitment to the property with a new 15-year, triple net lease and multi-million-dollar plans for state-of-the-art upgrades to the facilities,” said Whitson Huffman, chief strategy and investment officer.
Capital Square specializes in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $2.6 billion in transaction volume. The firm’s related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high-net-worth investors, private equity firms, family offices and institutional investors.