CSRA MOB Portfolio I, DST
Location: 9551 Fannin Street, Houston, Texas 77045
PROPERTY DETAILS
LEASE: 15-year lease
- STRUCTURE: Absolute triple net lease
- RENT ESCALATIONS: 2.5% annual rent increases
- LOCATION: 9551 Fannin Street, Houston, Texas
This portfolio consists of two well-located medical office buildings in Texas and South Carolina, each net leased on a long-term basis with annual rent increases to strong tenants in the healthcare industry. Both properties have been renovated and expanded to meet the long-term client demands
of each tenant.
Fannin Street, Houston, Texas
Mentis Houston LLP and Mentis Neuro Rehabilitation (parent company and guarantor) have exhibited strong financial performance. Over the last 24
months, Mentis more than doubled in size by increasing the number of facilities and beds in each facility.
INVESTMENT HIGHLIGHTS
- Strong Corporate Guarantee – Mentis Houston LLP and Mentis Neuro Rehabilitation (parent company and guarantor) have exhibited strong financial performance. Over the last 24 months, Mentis more than doubled in size by increasing the number of facilities and beds in each facility.
- Strong Lease Economics – The property has 15 years remaining on its original lease term, with 2.5 percent annual base rent escalations throughout the term of the lease.
- Location – The Mentis Neuro Rehabilitation facility is strategically located near the Texas Medical Center, in proximity to 21 renowned area hospitals and numerous educational universities, organizations and facilities, as well as many local residents in the immediate area. Neighborhoods
near the Texas Medical Center have witnessed billions of dollars in infrastructure expansion. The property is also near the 445-acre Hermann Park, home to the Houston Zoo and the Museum of Natural Science.
PROPERTY OVERVIEW
Mentis Neuro Rehabilitation
Approximately 20,600 rentable square feet
This property is 100 percent leased to Mentis Neuro Rehabilitation, which provides the highest-level of post acute neuro-rehabilitation to persons who have sustained an acquired brain injury or whose conditions restrict mobility, social interaction, communication, employability and re-entry into their homes and communities. Originally constructed in 2008, the single-story medical office building was renovated and expanded in 2012 to meet increased patient demand. The building is situated on 2.7 acres of land, and includes: 24 private patient rooms, 16 patient bathrooms, four administrative offices, a family counseling room, a filing and IT room, neuropsychology room, student office, treatment room, occupational therapy space and two speech therapy spaces. Other common areas include a gym, education room, recreational room, private dining areas and a day/dining room with a nurse’s station.
Novant Health
Approximately 31,597 rentable square feet
This medical office building is 100 percent leased to Novant Health, Inc., (S&P: A+), which operates Novant Health Family Medicine and Novant Health Bone & Joint at the building. Through a sublease of 8,571 square feet to Spartanburg Regional Hospital, the building also houses Gibbs Cancer Center & Research Institute. Situated on 8.67 acres of land, the building was originally constructed in 1996 and underwent an expansion and renovation in 2009. In 2011, more than 5,500 square feet of space underwent further renovation and an additional 3,015 square feet was added to the building to house the state-of-the-art cancer treatment provided by the Gibbs Cancer Center.
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.