Capital Square 1031, a sponsor of Delaware statutory trust offerings, has launched CS1031 MOB TX VI DST, a Regulation D private placement offering comprised of two medical office buildings located in Corpus Christi, Texas. The buildings are leased to Covenant Physician Partners for a base term of 15 years on a triple net basis.
The offering seeks to raise $5.8 million in equity and has a $25,000 investment minimum.
“Medical real estate has historically demonstrated to be a recession-resistant investment,” said Louis Rogers founder and chief executive officer. “This is Capital Square’s sixth medical DST investment in Texas for Section 1031 exchange and other investors.”
He added, “Texas is a preferred location for investment due to the high level of growth driving demand for additional medical services and the absence of a state income tax, creating a friendly environment for out-of-state investors.”
The portfolio includes:
- 5721 Esplanade Drive, a 9,200-square-foot, Class A multi-specialty ambulatory surgery center built in 2015 and situated on 1.1 acres of land, and
- 6002 S. Staples Street, a 24,300-square-foot Class A ophthalmic clinic built in 2018 and situated on 1.5 acres of land.
“Purpose-built medical properties like Texas Eye Care are experiencing increased demand as a result of the aging population,” said Whitson Huffman, senior vice president and head of acquisitions. “Healthcare spending increased by 4.6 percent in 2018, which accounted for 17.7 percent of gross domestic product that year.
Each property is operated by Covenant Physician Partners, an acquirer and operator of ambulatory surgery centers, anatomic pathology laboratories, anesthesia entities and physician practices.
Capital Square specializes 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 inception, the company has completed approximately $1.9 billion in transaction volume.
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- On March 20, 2020