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Capital Square 1031 Takes Medical Office Building DST Full Cycle, Resulting in Nearly 190 Percent Return on Equity in Five Years

Written by Paul Getty | Jun 27, 2019 5:30:53 PM

NEW YORK, June 25, 2019 /PRNewswire/ -- Capital Square 1031, a leading real estate investment and management firm specializing in Delaware Statutory Trust (DST) offerings, announced today the sale of an approximately 18,000-square-foot medical office building in the New York hamlet of Merrick on Long Island. The property was owned by a group of DST investors who realized a nearly 190-percent total return on equity, or a 17.96-percent annualized return, from their 1031 exchange investment.

The property was originally purchased for $7 million in June 2014 and sold for $10.5 million.

"We are pleased to announce the successful sale of this well-located medical office building, which marks Capital Square's fourth DST offering to be taken full cycle in 2019," said Louis Rogers, founder and chief executive officer of Capital Square 1031. "The sale of this DST property resulted in a significant return to investors and further exemplifies Capital Square's ability to strategically source, acquire, manage and sell real estate for tax-advantaged programs."

Capital Square has taken six DST offerings full cycle in the past 12 months that have resulted in weighted average returns of 14.73 percent annually and 158.16 percent on equity.

Mike Waddell, president of Capital Square 1031, added, "This medical office building was a prime candidate for a DST investment due to its long-term lease to Northwell Health, an investment-grade tenant, and favorable demographics for healthcare-related real estate. We are pleased with the results this full-cycle offering provided to investors seeking the benefits provided by Section 1031 exchanges and DSTs."

Located at 1728 Sunrise Highway, the two-story medical office building features multiple waiting rooms, 12 examination rooms, five patient consultation rooms, an x-ray room, fluoroscopy suite, MRI suite and six private offices. The property is strategically located within 16 miles of nine area hospitals and is easily accessible along Sunrise Highway, Southern State Parkway, Northern State Parkway and the Long Island Expressway. It can also be reached via the Long Island Railroad and Nassau Inter-County Express bus system.

The property was 100-percent leased on an absolute net lease to the largest private orthopedic practice in New York State, Orlin & Cohen Orthopedic Group. In October 2017, Orlin & Cohen joined Northwell Health, New York State's largest health care provider and private employer, with 23 hospitals, over 700 outpatient facilities and 68,000 employees, including over 16,000 nurses and approximately 4,000 physicians. The group specializes in orthopedics, including in-house diagnostic testing, physical therapy and pain management.

Since inception, Capital Square has acquired 82 properties for approximately 1,600 investors seeking quality replacement properties that qualify for tax deferral under Section 1031 of the Internal Revenue Code.

To learn more about similar offerings, please contact First Guardian Group at 866-398-1031 and/or info@FirstGuardianGroup.com.