Capital Square 1031 Acquires Purpose-Built Neuro-Rehabilitation Facility Near Dallas in All-Cash Transaction
The acquisition is on behalf of a Delaware statutory trust investment offering that seeks to raise $18.834 million in equity from accredited investors
July 13, 2021 | Capital Square
DALLAS (July 13, 2021) Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today the acquisition of a 21,083-square-foot medical office building in the Dallas suburb of Garland, Texas. The medical office building was acquired in an all-cash, no debt transaction on behalf of CS1031 MOB TX VII, DST, a Reg. D private placement investment offering.
“Medical real estate benefits from multiple economic and demographic trends, including increased spending and an aging population,” said Louis Rogers, founder and chief executive officer of Capital Square. “This new medical facility was purpose-built for NeuroRestorative, a leader in acute care, near Dallas, Texas. Many Section 1031 exchange investors do not need or want debt as a part of their replacement property. This all-cash, no debt DST offering provides Section 1031 exchange and cash investors the opportunity for stable returns and the potential for capital appreciation, without a mortgage or any debt associated with the property. Prior all-cash offerings have been extremely well received; we anticipate a very rapid sale of the DST interests.”
Located at 2301 West Campbell Road, the facility was purpose-built in 2019 for NeuroRestorative’s specialized use as a post-acute, neuro-rehabilitation facility. Under the terms of an absolute net lease with approximately 12.8 years remaining and 2.5% annual rent increases, the tenant is solely responsible for all taxes, insurance, maintenance and repairs.
Operating in 25 states, NeuroRestorative is a leading provider of subacute and post-acute rehabilitation services for people with brain, spinal cord and medically complex injuries, illnesses and other challenges. NeuroRestorative offers a continuum of care and rehabilitation options, including specialized services for infants, children, adolescents, military service members and veterans. The company is a subsidiary of The MENTOR Network, the leading national provider of home- and community-based health and human services to individuals with intellectual, developmental, physical or behavioral disabilities and other special needs.
CS1031 MOB TX VII, DST seeks to raise $18.834 million in equity from accredited investors and has a minimum investment requirement of $25,000.
“This purpose-built medical office building is strategically located at a heavily trafficked intersection within a high-growth target market in close proximity to four hospital trauma centers,” said Whitson Huffman, chief strategy and investment officer. “Occupied by a national healthcare provider under a long-term net lease, this asset is an ideal addition to our growing portfolio of investment properties.”
Since its founding in 2012, Capital Square has acquired 133 real estate assets for over 3,000 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 national real estate firm specializing in tax-advantaged real estate investments, including Delaware statutory trusts for Section 1031 exchanges and qualified opportunity zone funds for tax deferral and exclusion. Since 2012, Capital Square has completed more than $3 billion in transaction volume. Capital Square’s executive team has decades of experience in real estate investments. Its founder, Louis Rogers, has structured hundreds of investment offerings totaling in excess of $5 billion. 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 four 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. To learn more, visit www.CapitalSquare1031.com.
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.
