Four Springs TEN31 Xchange LLC, a sponsor of Delaware statutory trust programs, has fully subscribed FSC Healthcare III DST and FSC Healthcare IV DST – two medical office properties leased to BioLife Plasma Services and University of Iowa, respectively. The properties were valued at $32.6 million.
FSXchange designs DST programs for investors participating in Section 1031 tax deferred real estate exchanges, focusing on single tenant net-leased industrial, medical, retail and office properties.
“Demographic and healthcare industry trends show continued growth for the medical office sector,” said Coby Johnson, president and chief operating officer of Four Springs Capital Trust. “Our closings of these two DST offerings show the strong investor demand for well-located medical office properties leased to creditworthy tenants.”
The FSC Healthcare III DST property is an $8.4 million, 16,700-square-foot building that is 100 percent leased on a long-term, triple-net lease to BioLife Plasma service, a subsidiary of investment grade guarantor Baxalta.
The FSC Healthcare IV DST property is a newly constructed $24.2 million, 61,000-square-foot medical office building that serves as an outpatient clinic for female healthcare. The property is 100 percent leased to University of Iowa Hospitals and Clinic on a 12-year triple-net basis.
Four Springs Capital Markets assisted with the distribution of the offerings.
“FSXchange has now completed 11 DST programs comprised of over $100 million in properties,” said Eric Paul, president of Four Springs Capital Markets. “Thirty-five broker-dealers and independent financial planning firms participated in our two recent healthcare offerings, and we appreciate their support and confidence in us. Over the next 12 months we anticipate developing an additional $100 million in DST programs.”
FSXchange is a subsidiary of Four Springs Capital Trust, an internally managed real estate investment trust focused on acquiring, owning and managing a portfolio of single-tenant, income producing industrial, medical, retail, and office properties throughout the United States that are subject to long-term net leases.
Four Springs Capital Markets is a financial services firm that focuses on raising capital for real estate and other alternative investments. Since 2009, the company has raised capital from financial intermediaries, high net worth individuals, family offices and institutional investors for a wide range of 1031 programs, private placements and REIT equity and debt investments.