RICHMOND, Va., Nov. 20, 2017 /PRNewswire/ -- Capital Square
1031 announced today that its Delaware statutory trust offerings, CS1031
Morganton MOB, DST and CS1031 Louisburg MOB, DST, each comprised of
a medical office building occupied by affiliates of Fresenius
Medical Care in North Carolina,
have been fully subscribed by investors.
Capital Square 1031 has closed 35 DST offerings since its
founding in late 2012 for over 1,000 investors seeking quality
replacement property that qualifies for tax deferral under Section
1031 of the Internal Revenue Code.
"Each of these DST offerings is comprised of a newly-constructed
medical office building built-to-suit for the North Carolina affiliate of Fresenius Medical
Care, the world's leading provider of services and products for
people with chronic kidney failure," said Louis Rogers, founder and chief executive
officer of Capital Square 1031. "Capital Square is pleased to have
fully subscribed these offerings, which provide institutional
quality, tax-advantaged real estate ownership to a growing number
of Section 1031 exchange investors."
Rogers added, "Many exchangers do not have sufficient funds from
their relinquished property to acquire a quality 'whole'
replacement property. Instead of acquiring a lower quality, less
desirable replacement property, DST investors can acquire a portion
of a larger, higher quality DST replacement property. In this way,
Capital Square is making quality replacement property available to
a growing number of investors across the country, many of whom
acquire a portfolio of DST replacement properties to reduce risk
through diversification."
CS1031 Morganton MOB, DST is comprised of a newly constructed
dialysis clinic located at 814 W. Union St. in Morganton, N.C., that was placed in service in
August 2016. The 13,132-square-foot
medical office building is leased on a long-term basis to
Bio-Medical Applications of North
Carolina, d.b.a. Fresenius Medical Care Burke County.
CS1031 Louisburg MOB, DST, includes an 8,200-square-foot medical
office building that was acquired in an all-cash purchase for
exchange investors who do not need debt to obtain deferral under
Section 1031. Located at 935 N. Main St. in the Raleigh, N.C. suburb of Louisburg, the property is leased on a
long-term basis to Fresenius, which operates it as a dialysis
clinic.
"North Carolina is a
Certificate of Need state, requiring regulatory approval before
each of these new clinics could begin operations. The Certificate
of Need creates effective barriers to entry because a competitor
would have to obtain state regulatory approval before opening a
competitive clinic," said Rogers.
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.
During the fiscal year 2016, Fresenius posted revenues of
approximately $17.9 billion. The
company also cared for more than 308,000 dialysis patients in 3,624
proprietary clinics located in more than 45 countries worldwide.
Fresenius operates more than 40 production sites, which makes it
the leading provider of dialysis products, including dialysis
machines, dialyzers and disposable accessories.
About Capital Square 1031
Capital Square 1031 is a national real estate investment and
management company. The firm sponsors institutional-quality real
estate exchange programs that qualify for tax deferral under
Section 1031 of the Internal Revenue Code. Capital Square uses the
Delaware Statutory Trust (DST) structure to make quality real
estate available to a larger number of investors. Capital Square
provides a range of services, including due diligence, acquisition,
loan sourcing, property management/asset management, and
disposition, for a growing number of high net worth investors,
private equity firms, family offices and institutional investors.
As of September 26, 2017, the firm
oversees a growing national portfolio of 59 real estate assets
valued at approximately $630 million
(based on investment cost). In August
2017, Capital Square ranked 485th on the Inc. 5000 list of
fastest growing companies, making it the top-ranking Richmond, Virginia-area company, with 925
percent three-year growth. In 2016, Capital Square was ranked as
the second fastest growing company in the Richmond, Virginia area by Richmond BizSense.
To learn more, visit www.CapitalSquare1031.com.
Contact:
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Julie
Leber
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Spotlight Marketing
Communications
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949.427.5172, ext.
703
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julie@spotlightmarcom.com
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SOURCE Capital Square 1031