KINSTON,
N.C., Oct. 11, 2023 /PRNewswire/ -- Capital
Square, one of the nation's leading sponsors of tax-advantaged real
estate investments and an active developer of multifamily
communities, announced today the sale of a medical building in
Kinston, North Carolina. The
property was owned by a group of DST investors who realized 147.63%
total return, or 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 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 (no debt) 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, the world's leading 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 acquired 171 real
estate assets for over 6,500 investors seeking quality replacement
properties that qualify for tax deferral under Section 1031 of the
Internal Revenue Code and other investors seeking stable cash flow
and capital appreciation.
About Capital Square
Capital Square is a vertically
integrated national real estate firm specializing in tax-advantaged
real estate investments, including Delaware statutory trusts for Section 1031
exchanges, qualified opportunity zone funds for tax deferral and
exclusion and a real estate investment trust (REIT). In recent
years the company has become an active developer of mixed-use
multifamily properties in the southeastern U.S., with eight current
projects totaling approximately 2,000 apartment units with a total
development cost in excess of $600
million. Since 2012, Capital Square has completed more than
$7.5 billion in transaction volume.
Capital Square's related entities provide a range of services,
including due diligence, acquisition, loan sourcing, property/asset
management and disposition, for a growing number of high-net-worth
investors, private equity firms, family offices and institutional
investors. Since 2017, Capital Square has been recognized by Inc.
5000 as one of the fastest growing companies in the nation for
seven consecutive years. In 2017, 2018 and 2020, the company was
also ranked on Richmond BizSense's list of fastest growing
companies. Additionally, Capital Square was listed by Virginia
Business on their "Best Places to Work in Virginia" report in 2019 and their "Fantastic
50" reports in 2019 and 2020. In 2023, Capital Square was
recognized by the Richmond Times-Dispatch as one of the region's
"Top Work Places." To learn more, visit www.CapitalSq.com.
*The "total return" represents the ratio of total sales proceeds
and distributions through the life of the asset over the total
initial equity invested. The "annualized return" is defined as the
difference between net sale proceeds and initial investment, plus
the distributions over the holding period, divided by the initial
investment; divided by the number of months; times 12. The total
return and annualized return are net of fees and represent a return
to an individual investor. No representation is made that any
investment will or is likely to achieve profits or losses similar
to those achieved in the past or that losses will not be
incurred.
Disclaimer: Securities offered through WealthForge Securities,
LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities,
LLC are separate entities. There are material risks associated with
investing in DST properties and real estate securities including
illiquidity, tenant vacancies, general market conditions and
competition, lack of operating history, interest rate risks, the
risk of new supply coming to market and softening rental rates,
general risks of owning/operating commercial and multifamily
properties, short term leases associated with multi-family
properties, financing risks, potential adverse tax consequences,
general economic risks, development risks, long hold periods, and
potential loss of the entire investment principal. Past performance
is not a guarantee of future results. Potential cash flow, returns
and appreciation are not guaranteed. IRC Section 1031 is a complex
tax concept; consult your legal or tax professional regarding the
specifics of your particular situation. This is not a solicitation
or an offer to see any securities. Please read the Private
Placement Memorandum (PPM) in its entirety, paying careful
attention to the risk section prior to investing. Private
placements are speculative. Diversification does not guarantee
profits or protect against losses.
Contact: Jill Swartz
Spotlight Marketing Communications
949-427-1389
jill@spotlightmarcom.com
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SOURCE Capital Square