Capital Square 1031, a sponsor of Delaware statutory trust offerings, has purchased a new purpose-built medical office building and surgery center in Yuma, Arizona.
The property was purchased on behalf of CS1031 MOB AZ II DST, a debt-free offering that seeks to raise $10.8 million from accredited investors.
The facility was constructed in 2021 for Comprehensive Integrated Care, which executed a 15-year, triple-net lease that is personally guaranteed by the founding physician. The lease includes two five-year extension options. The property is situated in Tuscany Plaza, a medical and professional center that houses more than two dozen specialty medical providers and is approximately one mile from the 406-bed Yuma Regional Medical Center.
“Medical facilities such as this are some of the most desirable assets in the nation,” said Louis Rogers, founder and chief executive officer. “The icing on the cake — this facility is newly constructed, with a 15-year triple net lease to a strong regional medical group that is growing rapidly.”
Comprehensive Integrated Care was founded in 2013 and has 10 treatment centers in Arizona, Nevada, Utah and New Mexico, one of which was acquired by Capital Square in August 2021 for DST investors.
“Healthcare-related real estate assets such as this are attractive investment opportunities due to the compelling demographic shift that is underway in this country, with a ballooning senior population that is demanding ever-greater medical care that is increasingly being provided via out-patient 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 $4.5 billion in transaction volume. The company’s related entities provide due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high-net-worth investors, private equity firms, family offices and institutional investors.