Capital Square 1031, a real estate investment and management firm specializing in Delaware statutory trust offerings, has purchased a portfolio of nine medical office buildings located in five states. Each property is 100 percent leased to Fresenius Medical Care, a leading provider of dialysis services and products. The purchase price of the portfolio was not disclosed.
“This is a diversified portfolio of well-located medical clinics with new 15-year net leases guaranteed by Fresenius Medical Care Holdings, an investment-grade company,” said Louis Rogers, founder and chief executive officer of Capital Square 1031.
He added, “We believe that medical real estate is a stable and recession-resistant asset class. This healthcare-related portfolio is an attractive opportunity for investors seeking a safe investment because dialysis is a necessary and recurring medical treatment for more than 2.5 million Fresenius patients worldwide.”
Located in Texas, Tennessee, New York, Michigan and Mississippi, the portfolio includes the following properties:
• 5000 Campus Dr., a 10,640-square-foot building in Fort Worth, Texas,
• 9449 Grogans Mill Road, a 6,865-square-foot building in The Woodlands, Texas,
• 825-833 Dalworth St., a 9,150-square-foot building in Grand Prairie, Texas,
• 222 E. Sinton St., an 8,000-square-foot building in Sinton, Texas,
• 3600 Netherland Inn Road, a 7,028-square-foot building in Kingsport, Tennessee,
• 113 E. C Thurmond Cove, a 4,600-square-foot building in Martin, Tennessee,
• 220 Crystal Run Road, a 10,000-square-foot building in Middletown, New York,
• 5205 McAuley Dr., a 7,800-square-foot building in Ypsilanti, Michigan, and
• 241 Meadowlane St., a 3,215-square-foot building in Eupora, Mississippi.
Fresenius Medical Care Holdings, Inc. is a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA, which is listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS).
Fresenius is engaged in providing kidney dialysis services and clinical laboratory testing; manufacturing and distributing products and equipment for kidney dialysis treatment; and providing other medical ancillary services. During the fiscal year 2016, Fresenius posted revenues of approximately $17.9 billion.
Capital Square 1031 sponsors real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square 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 May 2, 2018, the firm oversees a national portfolio of 67 real estate assets valued at approximately $670 million (based on investment cost).