Capital Square builds $2 billion medical portfolio

Capital Square 1031, a sponsor of Delaware statutory trust (DST) offerings for Section 1031 exchange, announced that the firm has completed more than $2 billion in transaction volume with the launch of CS1031 SE MOB Portfolio. The regulation D private placement is comprised of two medical office buildings located in the Memphis Tennessee metropolitan area. The two properties included in the portfolio are within 16 miles of each other. One is a 16,750 square foot, single-story medical office building situated on 1.87 acres of land in Memphis at 1244 Primacy Parkway. The second is a 13,156 square foot, single-story medical office building situated on 2.02 acres of land at 7580 Clarington Cove in Southaven, Mississippi. "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." Rogers has structured hundreds of investment offerings totaling in excess of $5 billion. 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. CS1031 SE MOB Portfolio seeks to raise $10,008,000 in equity from accredited investors with a minimum investment of $25,000. Each property is operated by OrthoSouth, which offers orthopedic care across eight clinic locations and two surgery centers in Tennessee, Arkansas and Mississippi. 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.

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