KB EXCHANGE TRUST PURCHASES PORTFOLIO OF BUILDINGS LEASED TO FRESENIUS MEDICAL CARE
Beverly Hills, CA (March 10, 2016) – KB Exchange Trust ("KB") announced the acquisition of three buildings located in Virginia and Georgia; each is leased to Fresenius Medical Care. All three buildings are newly-constructed dialysis clinics, totaling a combined rentable space of approximately 25,000 square feet. They were acquired for the combined purchase price of $12.92 million.
"These clinics represent our third transaction with Choice One Development," stated Jeff Pori, managing partner for KB Exchange Trust. "Choice One has done an excellent job constructing these facilities and has met or exceeded all of the tenant's requirements. The three buildings were all completed in December. It is extremely difficult to create a portfolio offering with three coterminous leases. This portfolio allows us to offer our investors geographic diversification without inconsistent lease expirations," Pori further stated.
The three southeastern U.S. properties are located in Farmville, Virginia; Albany, Georgia; and Coweta County, Georgia. Each of the dialysis clinics has a 15-year lease with scheduled rental escalations. "These properties are ideal for 1031 Exchange investors who are looking for solid, cash flow investments," explained Mark Paul, managing partner for KB Exchange Trust. "This acquisition fits our Delaware Statutory Trust ("DST") program very well. We acquire healthcare-related properties in a DST structure and offer interests to investors who seek consistent income without any management requirements."
Publicly-traded on the New York Stock Exchange (NYSE:FMS), Fresenius Medical Care is the world's largest provider of dialysis services for chronic kidney diseases. Fresenius has a $26 billion market capitalization with over 100,000 employees and a network of 3,400 dialysis clinics in North America, Europe, Latin America, Asia-Pacific, and Africa. In January 2015, Fresenius was upgraded to "Investment-Grade" credit by Standard and Poor's.
KB has now acquired nine dialysis clinics leased to Fresenius Medical Care within the past 18 months.
About KB Exchange Trust
KB Exchange Trust is a sponsor of DST-structured real estate investments, specializing in single-tenant, net-leased properties. The sponsor's experienced management team has purchased and closed over $2 billion of fractional ownership properties for its 1031 investor clientele.
KB Exchange Trust DST interests are securities as defined by the Securities and Exchange Act of 1934 and may be sold only to "accredited investors" who meet certain minimum annual income or net-worth thresholds. The securities are subject to legal restrictions on transfer and there is no market for resale. These securities are being offered in reliance on an exemption from registration, and neither the U.S. Securities and Exchange Commission nor any other regulatory authority has passed upon the merits of an investment in the securities or passed upon the adequacy or accuracy of the offering materials describing the securities. Investing in securities involves risk, and investors should be able to bear the loss of their investment.
The Ferraro Group