CSRA NC MOB, DST AQB

CSRA NC MOB, DST AQB

Location: 2503 East Lyon Station Road, Creedmoor, North Carolina 27522

INVESTMENT COST: $5,555,000

EQUITY RAISE: $1,805,000

Healthcare represents 18 percent of the U.S. gross domestic product, and is expected to increase to nearly 20 percent of GDP by 2021.

East Lyon Station Road, Creedmoor, North Carolina

Single-story medical office building 100 percent leased on a long-term basis to Duke University Health System, rated Aa2 by Moody’s and AA by Fitch Ratings.

INVESTMENT HIGHLIGHTS

  • Stabilized Long-Term Cash Flow: The property is 100 percent leased to Duke University Health System, Inc. under a lease that has 2.5% annual rent increases and expires on September 30, 2030.
  • Strong Tenant: Duke University Health System, Inc. is rated Aa2 by Moody’s and AA by Fitch.
  • Strong Location: The Property is located in Creedmoor, North Carolina, which is a part of the Raleigh/Durham Metropolitan Statistical Area.
  • Established Tenancy: Duke University Health System, Inc. leases 100% of the Property. The building was designed especially for Duke University Health
    System, Inc., with the comfort and convenience of its patients and employees in mind.

PROPERTY DETAILS

  • LEASE: Approximately 15 years remaining on 21-year lease, expiring September 30, 2030
  • RENTAL INCREASES: 2.5% annual rent increases
  • OPTIONS: Two five-year renewal options

Investing in Medical Real Estate

BY THE NUMBERS: The Increasing Demand for Medical Real Estate

  • Approximately 12 million people have obtained coverage under the Affordable Care Act, generating additional need for medical real estate.
  • The aging of America has created a demand for more healthcare real estate.
  • Healthcare expenditures are expected to increase to $4.8 trillion by 2021, up over 58% from 2012.
  • Healthcare represents 18 percent of the U.S. gross domestic product, and is expected to increase to nearly 20 percent of GDP by 2021.
  • Between 2008 and 2018, healthcare job growth is projected to increase by nearly 29 percent.
  • Advances in technology and research increase life expectancies, producing additional interest in healthcare assets.

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.

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.

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