Capital Square Lands Dialysis Clinic in Eastern NC

The 10,880-square-foot building is fully leased to Fresenius, the world’s leading provider of products and services for people with chronic kidney failure.

by Laura Calugar

Kinston, N.C.Capital Square 1031 recently acquired a 10,880-square-foot medical building in Kinston, N.C. The building is fully leased to Bio-Medical Applications of North Carolina, an affiliate of Fresenius Medical Care. Fresenius now has 61 dialysis clinics in the state and 2,249 clinics in North America.

Located at 604 Airport Road, the building is in close proximity to both Lenoir Memorial Hospital and Kinston High School. According to NNN Pro Group, there are more than 29,500 people within a 5-mile radius of this property.

The Kinston Dialysis Center in N.C.
The Kinston Dialysis Center in N.C.

“This flagship location is one of Fresenius’ largest dialysis clinics in North Carolina, with 39 service chairs and approximately 110 patients. Kinston is a prime location, adjacent to the doctor’s office and only a five-minute drive to the hospital. Having the clinic, doctor’s office and hospital in close proximity makes Kinston convenient for patients and their care givers and efficient for health care providers,” said Louis Rogers, founder & CEO of Capital Square 1031, in a prepared statement.

Capital Square purchased the Kinston property in an all-cash purchase primarily for Section 1031 exchange investors who are attracted to this asset class for stable income, preservation of capital and capital appreciation.

“Chronic kidney failure is approaching epidemic proportions, which is driving the demand for dialysis clinics. There is no alternative to dialysis for most patients with diabetes or other forms of chronic kidney failure and, regrettably, there is no cure for the disease. Because most patients are covered by medical insurance or Medicare, dialysis clinics have proven to be stable, recession-resistant investments,” Rogers added.

As of November 2016, Capital Square oversees a national portfolio of 56 real estate assets valued at approximately $564 million, based on investment cost. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code.

Fresenius is engaged in providing kidney dialysis services. During the fiscal year 2015, Fresenius posted revenues of more than $16 billion. The company also cared for approximately 294,000 dialysis patients in 45 countries worldwide.

Image via Google Street View