Capital Square 1031, real estate investment and management firm, has acquired a portfolio of nine medical office buildings located in five states. No financial terms were disclosed. Each property in the portfolio is leased to Fresenius Medical Care, a provider of dialysis services and products.
RICHMOND, Va. (May 15, 2018) – Capital Square 1031, a leading real estate investment and management firm specializing in Delaware statutory trust offerings, announced today its acquisition of a portfolio of nine medical office buildings located in five states. Each property is 100 percent leased to Fresenius Medical Care, the world’s leading provider of dialysis services and products.
“This is a diversified portfolio of well-located medical clinics with new 15-year net leases guaranteed by Fresenius Medical Care Holdings, an investment-grade company,” said Louis Rogers, founder and chief executive officer of Capital Square 1031. “We believe that medical real estate is a stable and recession-resistant asset class. This healthcare-related portfolio is an attractive opportunity for investors seeking a safe investment because dialysis is a necessary and recurring medical treatment for more than 2.5 million Fresenius patients worldwide. By expanding Capital Square’s relationship with Fresenius, we are able to help a growing number of investors gain access to medical properties using the DST structure.”
Located in Texas, Tennessee, New York, Michigan and Mississippi, the portfolio includes the following properties*:
5000 Campus Dr., a 10,640-square-foot building in Fort Worth, Texas,
9449 Grogans Mill Road, a 6,865-square-foot building in The Woodlands, Texas,
825-833 Dalworth St., a 9,150-square-foot building in Grand Prairie, Texas,
222 E. Sinton St., an 8,000-square-foot building in Sinton, Texas,
3600 Netherland Inn Road, a 7,028-square-foot building in Kingsport, Tennessee,
113 E. C Thurmond Cove, a 4,600-square-foot building in Martin, Tennessee,
220 Crystal Run Road, a 10,000-square-foot building in Middletown, New York,
5205 McAuley Dr., a 7,800-square-foot building in Ypsilanti, Michigan, and
241 Meadowlane St., a 3,215-square-foot building in Eupora, Mississippi.
“With approximately 18 percent of the U.S. gross domestic product, as reported by the Centers for Medicare and Medicaid Services, and resistance to economic downturns, healthcare has proven to be a growing industry and a premier real estate asset class,” Rogers added.
As of May 2, 2018, Capital Square 1031 oversees a growing national portfolio of 67 real estate assets valued at approximately $670 million (based on aggregate investment cost).
Fresenius Medical Care Holdings, Inc. is a wholly-owned subsidiary of Fresenius Medical Care AG & Co. KGaA (Fresenius), which is listed on both the Frankfurt Stock Exchange (FME) and New York Stock Exchange (FMS). The company 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.
*Approximate square footage
About Capital Square 1031
Capital Square 1031 is a national real estate investment and management company. The firm sponsors 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 May 2, 2018, the firm oversees a growing national portfolio of 67 real estate assets valued at approximately $670 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.