SAN ANTONIO, Dec. 2, 2019 /PRNewswire/ -- Capital Square 1031, a leading sponsor of Delaware statutory trust (DST) offerings, announced today the acquisition of two newly constructed medical buildings located in Round Rock (Austin) and San Antonio, Texas. The buildings are leased to NeuroRestorative for 15 years on an absolute net basis.
"Capital Square has grown rapidly by investing in medical, multifamily and industrial real estate for the Section 1031/DST program," said Louis Rogers, founder and chief executive officer of Capital Square 1031. "Capital Square's investors are becoming increasingly concerned about the U.S. economy entering a recession. We like medical real estate because, in good and bad economic times, people need medical care. Capital Square is a long-standing investor in necessity-based medical real estate, which has proven to be recession resistant. Also, the properties are located in highly desirable markets in Texas, an income-tax free state that has experienced exceptional population growth, accelerating the need for medical services."
The portfolio includes:
- 5150 N. A.W. Grimes Blvd., an approximately 15,000-square-foot, 16-bed facility situated on nearly 2.7 acres of land in Round Rock, a suburb of Austin, Texas, and
- 18931 Hardy Oak Blvd., an approximately 20,000-square-foot, 24-bed facility situated on 2.6 acres of land in San Antonio.
"This desirable investment is bolstered by a 15-year absolute net lease to a strong tenant and guarantor with a credit rating of B2 and stable outlook by Moody's," said Whitson Huffman, senior vice president and head of acquisitions. "Annual rental increases and the net lease structure eliminates investor concerns about future inflation impacting returns from the property."
Each property was purpose-built in 2018 for NeuroRestorative to use as a post-acute, neuro-rehabilitation facility. 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.
Traumatic brain injury is a major cause of death and disability in the United States. Emergency department visits, hospitalizations and deaths from brain injuries increased 53% from 2006 to 2014, according to Centers for Disease Control and Prevention.
Adam Levinson of NKF Capital sourced the acquisition loan that was originated by Cantor Commercial Real Estate Lending with a 4.278% fixed rate for 10 years.
Since inception, Capital Square has acquired 89 real estate assets for over 2,000 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.
About Capital Square 1031
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. Capital Square has completed more than $1.6 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.
SOURCE Capital Square 1031