CS1031 CALIFORNIA MOB I, DST
Location: 711 Valley Boulevard, Tehachapi, California 93561 (Bakersfield MSA)
ALL CASH/NO MORTGAGE DEBT OFFERING
Estimated Distribution Rate: 5.5%
- Estimated Hold Period : 7 - 10 years
- 15-year absolute net lease
- Fixed rent escalations of 2.25% per year
The founder of Sanderling Renal Services and the three practicing physicians jointly and severally unconditionally guarantee the obligations of the tenant during the entire term of the lease
Adventist Health Tehachapi Valley
INVESTMENT HIGHLIGHTS
Newly-constructed medical office building is 100 percent leased on an absolute net lease basis to Sanderling Renal Services.
ALL CASH/NO MORTGAGE DEBT OFFERING
CS1031 California MOB I, DST is being offered without any mortgage debt for investors who seek an all cash/no debt DST property.
Stable, Long-Term Net Leased Health Care Investment
- 15-year absolute net lease
- Fixed rent escalations of 2.25% per year
State Inspection
Medicare provides funding for any patient suffering from End Stage Renal Disease regardless of age. To obtain Medicare reimbursement, a dialysis clinic must be inspected and certified by the state. In California, state Medicare inspections have a one-year lag time from application to completion. Accordingly, a competitor to the Sanderling clinic would have difficulty opening and competing with the Sanderling clinic for quite some time.
Positioned for Stability Through Necessary Medical Care
Sanderling provides products and services for people with End Stage Renal Disease, a condition that affects millions worldwide. More than 2.5 million patients regularly undergo dialysis therapy, and in the U.S., treatment of chronic kidney disease is likely to exceed $48 billion per year.* The property is poised for success due to lack of competition, demographics and location.
* Source: National Kidney Foundation. “Global Facts: About Kidney Disease.” 11.14.17. Web.
PROPERTY DETAILS
LEASE – 15-year lease
STRUCTURE – Absolute net lease
RENEWAL OPTIONS – Three five-year renewal options
PLACED IN SERVICE – Q4 2015
LAND – .44 Acres
No Local Competition**
Licensed for Business by California and Medicare
Less than 1 Mile from Newly-Constructed Adventist Health Tehachapi Valley Hospital, with $100 Million in Construction Costs***
**According to research using http://www.dialysisfi nder.com/
dialysis-centers/tehachapi/ca/100#.WgskVltSypo
***Adventist Health Tehachapi Valley Hospital Opening
Date Pushed Back.” TehachapiNews.com. 05.03.17. Web.
LOCATION HIGHLIGHTS
About Tehachapi
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.
Demographics
According to Data USA’s 2017 County Health Rankings, Kern County has a 9.3 percent diabetes prevalence value (the percentage of adults aged 20 and above with diagnosed diabetes).
The Sanderling clinic is located one-half mile from a new Adventist Hospital. Proximity of the clinic to the hospital allows medical practitioners to combine rounds at the hospital with visits to the clinic, avoiding wasted time and attracting patient referrals. The clinic is near a California Correction Institution facility that provides patient referrals to the clinic.
ABOUT SANDERLING RENAL SERVICES, LLC
Sanderling is a full-service provider of dialysis and renal telemedicine that develops and operates dialysis clinics. Sanderling is owned by 23 board-certified nephrologists. The company was founded in 2012 by Dr. Jerome Tannenbaum, who has more than 30 years of experience starting and growing dialysis clinics. Dr. Tannenbaum founded three firms that grew and were sold to the largest dialysis providers in the United States: REN Corp. which was sold to Gambro Healthcare, National Nephrology Associates, which was sold to Renal Care Group, and DSI Renal which was sold to Fresenium Medical Care, the largest dialysis provider in the world.
Sanderling is focused on bringing high quality dialysis and nephrology services to rural communities. Many patients who live in rural communities lack convenient access to a dialysis clinic or a nephrologist (kidney specialist). The company establishes close working relationships with the local hospital and primary care providers to improve the continuity of care for patients who require dialysis.
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.