KB EXCHANGE TRUST PURCHASES FRESENIUS MEDICAL PROPERTY IN CHICAGO
Los Angeles, CA (April 28, 2015) - KB Exchange Trust ("KB") announced today the acquisition of a Fresenius Medical Care dialysis clinic in downtown Chicago, Illinois. "The recently-constructed medical property, totaling approximately 10,170 square feet, is in a strong infill location," according to Managing Partner Mark Paul. "This newly-constructed Fresenius Medical Care dialysis clinic is located just two miles from the skyscrapers of downtown Chicago. The densely-populated area surrounding the property has approximately 500,000 residents living within three miles. Over 40,000 people live within a single mile of the Fresenius clinic."
Fresenius Medical Care, publicly traded on the New York Stock Exchange, is the world's largest provider of dialysis services for chronic kidney diseases. Fresenius has a $26 billion market capitalization with over 85,000 employees and a network of 3,200 dialysis clinics in North America, Europe, Latin America, Asia-Pacific, and Africa. In January 2015, Fresenius Medical Care received a credit upgrade by Standard and Poor's rating agency to "investment grade."
KB will offer interests in the property to investors as a simplified 1031 exchange solution. "DSTs are a simple and efficient way for investors to accomplish a 1031 exchange without having to qualify for a loan or to engage in property management activities," stated Managing Partner Jeff Pori. "The Fresenius Chicago property offers investors a six-percent cash flow initially and has annual rental increases after the second lease year.
KB is actively purchasing Fresenius dialysis clinics having purchased other Fresenius facilities in New Jersey, Arizona, and Wisconsin. "Our 1031 exchange offerings have been well-received by investors looking for high-quality tenants on long-term leases. All of the new Fresenius clinics we have acquired have 15-years leases and escalating rental schedules," said Pori.
The property will be managed by NAS National Asset Services, a national asset management company, based in Los Angeles, with over 13 million square feet of commercial properties under management.
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 experience 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