Capital Square 1031, a sponsor of Delaware statutory trust offerings, announced that CS1031 So Cal MOB DST has been fully subscribed by Section 1031 exchange and other investors. The offering is comprised of three medical facilities located in Pasadena, Rancho Mirage and Azusa, California.
The portfolio includes a 23,687-square-foot building in Pasadena, a 7,500-square-foot building in Rancho Mirage, and an 11,331-square-foot building in Azusa.
“Medical real estate dominates as a favorable and recession-resistant asset class,” said Louis Rogers, founder of chief executive officer of Capital Square. “This portfolio was purchased primarily for Section 1031 exchangers as replacement property for another Capital Square DST offering that went full-cycle when the property was sold.”
The leases are guaranteed by Synovation Medical Group, a pain management practice consisting of more than 60 medical practitioners and 18 facilities located throughout Southern California.
“The facilities are strategically located in densely populated areas, in close proximity to hospitals and other medical facilities,” added Whitson Huffman, senior vice president and head of acquisitions. “Capital Square’s acquisition team negotiated favorable, 15-year absolute net leases, guaranteed by a quality tenant, further adding to value to the investment.”
Capital Square is a national investment sponsor specializing in tax-advantaged real estate offerings, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Capital Square has completed more than $1.5 billion in transaction volume. Capital Square’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.
Since inception, Capital Square has acquired 86 real estate assets for approximately 2,000 investors seeking replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.