Capital Square 1031, a sponsor of Delaware statutory trust offerings, has fully subscribed CS1031 Houston Memory Care II DST, a Reg. D private placement investment offering comprised of a new 10,000-square-foot Class A memory care facility near Houston that was purchased with no mortgage debt. The offering raised approximately $4.9 million from 17 1031 exchange investors.
“There is a shortage of specialized medical facilities for patients with severe memory issues, such as Alzheimer’s,” said Louis Rogers, founder and chief executive officer. “Because the need for memory care is not correlated to the general economy, medical properties such as this have proven to be recession resistant.”
Located in Kingwood, Texas and completed in March 2019, the facility includes 16 beds and is leased to Village Green Alzheimer’s Care Home, an operator of five memory care facilities in Greater Houston. Under its absolute net lease, the tenant is responsible for all expenses, including structure, maintenance and repairs.
“This facility is located in a prosperous submarket of Houston that is enjoying strong income and population growth,” added Rogers. “Additionally, Texas does not have a state income tax, which benefits investors.”
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. The firm, which has completed more than $1.85 billion in transaction volume, provides due diligence, acquisition, loan sourcing, property/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors.