Capital Square 1031 Acquires New, State-of-the-Art 2.69 Million Square Foot Amazon Fulfillment Facility

DES MOINES, Iowa, February 16, 2022 /PRNewswire/ — Capital Square 1031, one of the main sponsors of Delaware Statutory Trust (DST) Offerings for Section 1031 Exchange and Other Accredited Investors, today announced the acquisition of a 2,690,000 square foot distribution facility on a long-term absolute net lease with Amazon.com Inc. (NASDAQ: AMZN). The facility was acquired on behalf of CS1031 Zero Coupon Fulfillment Center, DST.

“This significant offering is designed for Section 1031 equity investors who need additional debt because their replacement property has lower leverage than their abandoned property,” said Louis Roger, Founder and Managing Director. “Section 1031 requires equal or greater debt to qualify for 100% tax deferral, but leverage today is much lower than in the past, making high LTV offerings very In addition to exchangers, other real estate owners wish to invest in real estate such as this which generates excessive passive losses from a combination of depreciation, cost segregation and bonuses of depreciation to offset taxable income from other real estate investments. Due to the quality of Amazon’s facility and the financial strength of the tenant, this offer has both angle and exceptional savings for Capital Square investors at nationwide.”

Located at 500 32nd St. SW, the 169.6-acre property is adjacent to US Route 65 and Interstate 80 at Bondurant, Iowaa first industrial sub-market in Greater Des Moines. The four-story structure was completed in the fourth quarter of 2020. The building was designed by Amazon with the latest technological advancements and high-quality materials and can process nearly one million packages per day by implementing both robotics and human labor to maximize efficiency. .1.2 The property is leased on an absolute net basis and is guaranteed by Amazon, which has an investment grade credit rating of AA by S&P.3

“Structured to be highly tax-efficient, this acquisition includes a double loan system that protects investors from phantom income,” said Whitson Huffman, chief strategy and investment officer. “Lease also benefits from unparalleled creditworthiness thanks to Amazon’s full warranty and premium corporate credit.”

From February 2022Amazon ranked fifth in the world by market capitalization and fourth in United States after $1.52 trillion.4 It is the second-largest company in the Fortune 500. Amazon conducts its retail and distribution business through its Amazon Services business line, the sole tenant of the Bondurant, Iowa ease. From December 2021Amazon’s national industrial network totaled more than 347.6 million square feet of active facilities, with more than 125.6 million square feet planned or under development.5 Amazon Robotics’ sorting fulfillment centers are the largest facilities in Amazon’s logistics network.

CS1031 Zero Coupon Fulfillment Center, DST seeks to increase $52.2 million in equity from accredited investors.

Greater Des Moines has received a lot of interest from developers and end users, with over 630 acres purchased since 2019.6 The MSA is also attractive to technology companies. monks enjoys a high ranking on the 2021 “Top Emerging North American Tech Market” lists by CBRE, “Most Resilient Tech Hub” by LinkedIn, and “Rising Star for Tech Jobs” by CompTIA. As a result, technology companies such as Apple, Facebook and Microsoft have found the region to be a strategic and profitable location for data center operations.

Capital Square acquired the property from Mesirow Realty Sale-Leaseback Inc. (“Mesirow”). Mesirow’s Sale-Leaseback Capital team structured and financed the development of this property, starting before construction began. Mesirow’s breadth of specialist expertise, depth of relationships and balance sheet strength have enabled the company to execute more than $8 billion in single-tenant transactions while meeting the long-term strategic needs of organizations like Amazon.

Since its inception in 2012, Capital Square has acquired 149 real estate assets for more than 4,600 individual investors, across 5,800 investments, seeking quality replacement properties eligible for tax deferral under Section 1031 of the Internal Revenue Code and other investors seeking stable cash flow and capital appreciation.

About Capital Square
Capital Square is a national real estate company specializing in tax-efficient real estate investments, including Delaware statutory trusts for Section 1031 exchanges and opportunity zone funds qualifying for tax deferral and exclusion. Since 2012, Capital Square has achieved over $4.9 billion in transaction volume. Capital Square’s management team has decades of experience in real estate investing. Its founder, Louis Rogerhas structured hundreds of investment deals totaling more than $5 billion. Capital Square related entities provide a range of services, including due diligence, acquisition, loan sourcing, property/asset management and disposition, for a growing number of high net worth investors, capital companies -investment, family offices and institutional investors. Since 2017, Capital Square has been recognized by Inc. 5000 as one of the fastest growing companies in the country for five consecutive years. Additionally, in 2021, the company was ranked 101st on Inc.’s list of fastest growing private companies. 5000 Washington D.C. Metro. In 2017, 2018 and 2020, the company was also ranked on Richmond BizSense’s list of fastest growing companies. Capital Square was listed by Virginia Business in its “Best Workplaces in Virginiain 2019 and 2021 as well as their “Fantastic 50” reports in 2019 and 2020. To learn more, visit www.CapitalSquare1031.com.

Sources: 1. https://who13.com/news/amazon-confirms-bondurant-fulfillment-center-facility-to-create-1000-full-time-jobs/ | 2. https://www.radioiowa.com/2021/09/14/amazonlooking-to-hire-more-workers-at-its-iowa-locations/ | 3. CompaniesMarketCap.com | 4. https://finance.yahoo.com/quote/AMZN/ | 5. MWPVL International | 6. Greater Des Moines Partnership, https://www.dsmpartnership.com/news-media/news/partnership-news/dsm-population-growth-percentageoutpaces-other-midwest-metros

Disclaimer: Securities offered by WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are significant risks associated with investing in DST properties and real estate securities, including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, risks of interest rates, the risk of new offerings coming to market and rental rates decreasing, general risks of owning/operating commercial and multi-family properties, short-term leases associated with multi-family properties, risks financing, potential adverse tax consequences, general economic risks, development risks, long holding periods and the potential loss of all investment capital. Past performance is not indicative of future results. Potential cash flows, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax advisor regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying particular attention to the risk section before investing. Private placements are speculative. Diversification does not guarantee profits or protect against losses.

Contact:
Julie Leber
Featured marketing communications
949.427.1391
[email protected]

SOURCE Capital Square

Comments are closed.