Capital Square Delivers 147% Return to Investors with Sale of North Carolina Medical Building
Capital Square, a sponsor of tax-advantaged real estate investments and developer of multifamily communities, announced the sale of a medical building in Kinston, North Carolina.
The property was owned by a group of Delaware statutory trust investors who realized a total return of 147.63%, equal to a 7.15% annualized return, from their 1031 exchange investment.
“Capital Square has acquired a large number of medical buildings in the Southeast for the Section 1031 DST exchange program,” said Louis Rogers, founder and co-chief executive officer of Capital Square. “Medical assets are well-known for providing stable income, preservation of capital and capital appreciation. We are pleased to report that this all cash, no debt, DST offering exceeded our expectation in generating an exceptional total return of 147.63% and a 7.15% annualized return to investors. And we expect most investors to structure another Section 1031 exchange with Capital Square.”
Since 2018, Capital Square reports that the company has taken 24 DST offerings full-cycle that have resulted in an average 173.51% total return and an average 14.53% internal rate of return.
Capital Square acquired the property in November 2016 in an all‐cash purchase primarily for Section 1031 exchange investors who are “attracted to the medical asset class for stable income, preservation of capital, and capital appreciation.”
The Kinston medical building is 100% leased to Bio-Medical Applications of North Carolina, an affiliate of Fresenius Medical Care, a provider of dialysis services and products for people with chronic kidney failure. Listed on both the Frankfurt Stock Exchange (DAX: FME) and New York Stock Exchange (NYSE: 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.
“Strong market conditions and favorable demographics for healthcare-related real estate made this medical office building a prime candidate for our investors,” said Whitson Huffman, co-chief executive officer. “We are pleased to have delivered an attractive return to them.”
Since its founding in 2012, Capital Square has reportedly raised more than $3 billion in equity from investors for its various real estate investment offerings, primarily Delaware statutory trust offerings employed to facilitate tax-advantaged 1031 exchanges and qualified opportunity zone funds.
For more Capital Square news, please visit their directory page.
