Capital Square 1031 Crosses $2 Billion Threshold in Transaction Volume with Launch of Medical Portfolio DST Offering

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Jul 20, 2020, 08:00 ET

MEMPHIS, Tenn., July 20, 2020 /PRNewswire/ -- Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings for 1031 exchange and other accredited investors, announced today that the firm has completed more than $2 billion in transaction volume with the launch of CS1031 SE MOB Portfolio, DST. The Regulation D private placement is comprised of two medical office buildings located in the Memphis, Tennessee metropolitan area.

"Capital Square continues to focus on medical properties for the 1031/DST program because they generate stable cash flow and capital appreciation," said Louis Rogers, founder and chief executive officer of Capital Square. "Also, medical properties provide essential services and have proven to be recession-resistant and, now, COVID-19 resistant. With many REITs and funds on the sidelines, Capital Square is increasing its allocation to medical properties at better pricing than before the pandemic."

CS1031 SE MOB Portfolio, DST seeks to raise $10,008,000 in equity from accredited investors with a minimum investment of $25,000.

The portfolio includes two properties in the Memphis metropolitan area within 16 miles of each other:

1244 Primacy Parkway, a 16,750-square-foot, single-story medical office building situated on 1.87 acres of land in Memphis, Tennessee, and
7580 Clarington Cove, a 13,156-square-foot, single-story medical office building situated on 2.023 acres of land in Southaven, Mississippi.

Each property is operated by OrthoSouth, which offers orthopedic care across eight clinic locations and two surgery centers in Tennessee, Arkansas and Mississippi. Formed by the merging of Memphis Orthopaedic Group, OrthoMemphis and Tabor Orthopedics, OrthoSouth is comprised of 35 physicians and 44 physical therapists.

"This is Capital Square's 42nd medical property acquired since the company was founded and the first medical acquisition since the COVID-19 pandemic," said Whitson Huffman, chief strategy and investment officer. "The lender was comforted by the strength of OrthoSouth, a top-rated medical group, and the close proximity the buildings have to leading hospitals in the area."

Since inception, Capital Square has acquired 110 real estate assets for approximately 2,200 investors nationwide seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking cash flow and appreciation potential.

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. To date, Capital Square has completed more than $2 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. In 2017, 2018 and 2019, Capital Square was awarded by Inc. 5000 as one of the fastest growing companies. In 2017 and 2018, the company was also ranked on Richmond BizSense's list of fastest growing companies. In 2019, Capital Square was listed by Virginia Business on their "Best Places to Work in Virginia" and "Fantastic 50" reports. 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. Diversification does not guarantee profits or protect against losses.