Analysis of Investments

Louisburg MOB

Capital Square Realty Advisors

This offering consists of a single tenant net-leased property located in Louisburg, North Carolina.  The sponsor is not utilizing debt.  Fresenius Medical Care is the tenant for the property.  

Investment Highlights

  • Yr. 1 Cash-on-Cash 5.00%
  • Initial Occupancy 100.00%
  • Est. Time Horizon 7 to 10 years YEARS
  • Current Cash Flow
  • Yr. 1 Cap Rate to Investor 5.44%
  • Investor Purchase Price $4,924,000
  • Total Offering Size $4,924,000

Loan Information

This offering does not use debt. 

  • Yr. 1 DSCR None
  • Loan-to-Offering 0.00%
  • Hold Period DSCR None

Tenant Information & Lease Terms

The tenant for this offering is Fresenius Medical Care, with Fresenius Medical Care Holdings, Inc. The lease expires 10/31/2031 with 10% every 5-years. 

Fresenius Medical Care AG & Co. KGaA has a credit rating of BBB- from S&P and its North American subsidiary and the guarantor of the lease, Fresenius Medical Care Holdings, has a credit rating of Ba2 by Moody's and the Outlook is stable.

Key Positives

  • The property was recently built. 

  • 15-year long term lease from an investment grade tenant. 

  • North Carolina is a Certificate of Need state. 

  • This offering does not use debt, there is no foreclosure risk. 

  • North Carolina is ranked 22nd for obesity. 

  • Sponsor is using a master tenant.  

Key Risks to Consider

  • The property is a specialized medical facility for a Fresenius Medical Care.  Should the current tenant vacate potential replacement tenants may be limited due to the built-to-suit nature of the construction. 

  • Investors cap rate of 5.44% is low.

  • Population is low in the 1, 3 and 5 mile areas. Less than 10,000 in the 5-mile. 

  • Syndication costs are high on this offering.  The load is 19%, we generally see all cash offerings with 13-16% in costs.    

Investment Sponsor Information

Capital Square Realty Advisors

Capital Square 1031 is a national real estate investment and management company. The firm sponsors institutional-quality real estate exchange programs that qualify for tax deferral under Section 1031 of the Internal Revenue Code. Capital Square uses the Delaware Statutory Trust (DST) structure to make quality real estate available to a larger number of investors.

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