Capital Square 1031 Buys Newly Constructed California Medical Office Building

Capital Square 1031, a real estate investment and management firm specializing in Delaware statutory trust investments, has acquired a newly-constructed medical office building providing specialty dialysis services near Bakersfield, California. The purchase price was not disclosed.

Located in Tehachapi, California, the property is 100 percent leased on a long-term, absolute net basis with yearly rent escalations to Sanderling Renal Services, a healthcare firm specializing in dialysis and nephrology services. The building is located near the recently completed Adventist Health Tehachapi Valley hospital.

“Acquisition of the Tehachapi property marks Capital Square’s 20th medical office building under management and aligns well with our investment strategy of acquiring stable, high quality real estate assets,” says Louis Rogers, founder and chief executive officer of Capital Square 1031. “The building is poised for long-term stability due to the lack of competition, coupled with the growing demand for healthcare services in the area.”

The property was acquired on an all cash, no debt basis, as part of a Delaware statutory trust offering primarily for investors structuring Section 1031 tax-deferred exchanges. A growing number of high net worth investors are seeking Section 1031 replacement property on an all cash basis. This is Capital Square’s 40th DST offering and 60th property acquisition to-date.

Capital Square 1031 is a national real estate investment and management company. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The company provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for a growing number of high net worth investors, private equity firms, family offices and institutional investors. As of September 26, 2017, the firm oversees a portfolio of 59 real estate assets valued at approximately $630 million (based on investment cost).

For more Capital Square 1031 news, click here to visit their directory sponsor page.