CSRA MOB TX IV, DST
Location: 4360 Doniphan Drive, El Paso, Texas 79922
INVESTMENT COST: $7,070,000
EQUITY RAISE: $2,820,000
- CASH-ON-CASH RETURN: 6%
- OFFERING LOAN-TO-VALUE: 60.12%
- LOAN: 10-year term
- FIXED INTEREST RATE: 4.94%
The organization helps people who have sustained an acquired brain injury or whose conditions restrict mobility, social interaction, communication, employability and re-entry into their homes and communities.
Doniphan Drive, El Paso, Texas
Newly constructed 19,855-square-foot medical office building 100 percent leased to Mentis Neuro El Paso, LLC, a whollyowned subsidiary of Mentis Neuro Rehabilitation, LLC.
INVESTMENT HIGHLIGHTS
- Strong Corporate Guarantee: Mentis Neuro El Paso and Mentis Neuro Rehabilitation (parent company and guarantor) have exhibited strong financial performance. Mentis El Paso outgrew its previous office location, while Mentis Neuro Rehabilitation has been growing for the past three years.
- Stabilized Lease Economics: The property is 100 percent leased for 15 years, under a lease that has 2.5% annual rent increases.
- Established Tenancy: Mentis Neuro El Paso leases 100% of the property. The building was designed especially for the healthcare company to provide comfort for patients and employees alike.
- Uniquely Positioned for Stability through Healthcare Reform: Because Mentis facilities in Texas are licensed as assisted living centers, a patient’s discharge from acute care rehabilitation to Mentis is accounted for as if being discharged home. This is a strategic benefit to the short term and acute care rehabilitation facilities and will help to manage healthcare costs for patients with catastrophic injuries.
PROPERTY DETAILS
LEASE : 15-year lease
STRUCTURE: Triple Net Lease – expires May 2030
RENTAL INCREASES: 2.5% annual rent increases
Investing in Medical Real Estate
BY THE NUMBERS: The Increasing Demand for Medical Real Estate
The beautiful Tehachapi Valley is an oasis located in the mountains between the San Joaquin Valley and the Mojave Desert, offering a cool haven from the arid desert heat and the sprawling lowlands of the valley. Featuring sparkling blue skies that turn into star-filled nights with unending depth, the beauty of Tehachapi is seen in every setting. The diversity of the area offers something for everyone, small-town neighbourhoods, mountains filled with oak and pine trees sheltering the most rustic to the most luxurious homes, sprawling ranches and everything in between, all beautifully displayed in the splendour of four wonderfully distinct seasons.
Aging of America Drives Demand
The Baby Boomers: The first of the “baby boomer” generation began turning 65 in 2011. The population over 65 is expected to grow significantly between 2010 and 2060, from 40 million to more than 98 million people.
People 65 years and older average 2.5 times the number of physician office visits than the rest of the population. Insurance exchanges and Medicaid expansion provide coverage to an additional 27 million people in this population segment.
Elderly Population: People 85 years and older will reach 4.5 percent of the total population by 2050.iii
ABOUT CAPITAL SQUARE
Capital Square 1031, LLC specializes in the creation and management of real estate investment programs for Section 1031 exchange investors and other investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive offi cer of Capital Square, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DSTs, tenant-in-common offerings, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.