Capital Square 1031, a sponsor of Delaware statutory trust offerings, has fully subscribed CS1031 Midwest Dialysis DST, a Regulation D private placement investment offering comprised of a 9,000-square-foot dialysis clinic located in East Chicago, Indiana, approximately 24 miles from Chicago, Illinois. The offering raised $4.3 million from accredited investors.
Operated by Fresenius Kidney Care, the building was acquired for the DST in an all-cash transaction, with no mortgage debt. This is Capital Square’s 16th dialysis clinic in a DST program primarily for investors seeking tax deferral by structuring an exchange under Section 1031.
“Capital Square is pleased to add the Midwest Dialysis facility to its growing portfolio of medical properties across the nation,” said Louis Rogers, founder and chief executive officer. “All of Capital Square’s dialysis clinics are performing on plan – 100 percent occupied with the rent paid on schedule – in spite of the COVID-19 pandemic that has adversely impacted other real estate investments. This confirms Capital Square’s thesis that medical properties are ‘essential’ and withstand stress from economic issues, including a global pandemic, much better than non-essential properties.”
Constructed in 2018, the medical office building is 100 percent leased for 15 years on a double-net basis. The lease is guaranteed by Fresenius Medical Care Holdings Inc., a wholly- owned subsidiary of Fresenius Medical Care AG & Co. KGaA. The company is listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS).
Fresenius provides kidney dialysis services and clinical laboratory testing; manufacturing and distributing products and equipment for kidney dialysis treatment; as well as providing other medical ancillary services.
The facility is located approximately 20 minutes from downtown Chicago and less than a mile from St. Catherine Hospital.
Capital Square is a national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. To date, Capital Square has completed approximately $2 billion in transaction volume. The firm’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.