Capital Square 1031, a real estate investment and management firm specializing in Delaware statutory trusts, has launched CS1031 Midwest Dialysis DST, a Reg. D investment offering of a 9,000-square-foot Fresenius dialysis clinic located in East Chicago, Indiana. The building was acquired by the DST for an undisclosed sum in an all-cash transaction.
“CS1031 Midwest Dialysis DST provides investors with the opportunity to own a high-quality medical office building without any mortgage debt,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “A growing number of Section 1031 exchange investors are seeking an all-cash replacement property without any mortgage debt. Also, the investment-grade lease guarantor, Fresenius Medical Care Holdings, coupled with the recession resilience of medical real estate, makes this a desirable investment.”
Constructed in 2018 and located approximately 20 minutes from downtown Chicago, the medical office building is 100 percent leased for 15 years on a double-net basis to Fresenius Medical Care Holdings Inc., a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA.
Fresenius is listed on both the Frankfurt Stock Exchange and New York Stock Exchange and provides kidney dialysis services and clinical laboratory testing; manufactures and distributes products and equipment for kidney dialysis treatment; and provides other medical ancillary services.
In other Capital Square news, last week the company launched another DST program, CS1031 Hickory Creek Apartments DST, comprised of a 294-unit multifamily community in Richmond, Virginia.
Capital Square has acquired 75 properties for approximately 1,600 investors seeking replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
Capital Square 1031 sponsors real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. The firm provides a range of services, including due diligence, acquisition, loan sourcing, property management/asset management, and disposition, for high net worth investors, private equity firms, family offices and institutional investors. Since inception, the firm has sponsored 56 DST programs and completed approximately $1.03 billion in transaction volume.