Capital Square Buys CA MOB
- Dec 12, 2017
Capital Square 1031 has acquired a newly constructed medical office building near Bakersfield, Calif. Located at 711 Valley Blvd. in Tehachapi, Calif., the property is 100 percent leased on a long-term, absolute net basis with yearly rent escalations to Sanderling Renal Services, a health-care firm specializing in dialysis and nephrology.
The property was acquired on an all-cash, no-debt basis, as part of a Delaware statutory trust offering primarily for investors structuring Section 1031 tax-deferred exchanges. A growing number of high net worth investors are seeking quality Section 1031 replacement property on an all-cash basis. This is Capital Square’s 40th DST offering and 60th property acquisition to-date.
“Acquisition of the Tehachapi property marks Capital Square’s 20th medical office building under management and aligns well with our investment strategy of acquiring stable, high-quality real estate assets,” said Louis Rogers, founder & CEO of Capital Square 1031, in a prepared statement. “The building is poised for long-term stability due to the lack of competition, coupled with the growing demand for healthcare services in the area.”
The Adventist Health Tehachapi Valley hospital is one mile from the property.
Earlier this year, Capital Square 1031 acquired a newly built, 8,200-square-foot medical office building in the Raleigh, N.C., suburb of Louisburg.