United Healthcare Services, Inc. Headquarters Building
Class A office property in Minnetonka, MN · sponsored by Net Lease Capital Advisors
United Healthcare Services, Inc. Headquarters Building was a DST sponsored by Net Lease Capital Advisors that owned a class A office property in Minnetonka, MN (635,000 square feet). Its last Form D was filed Jan 8, 2014.
How it ended
No public outcome found
Last Form D filed Jan 8, 2014.
Net Lease Capital Advisors has 8 active offerings on record →
Key facts
- Minimum investment
- Not in the Form DFrom the Form D
- Offering size
- $177,074,367Equity offered, per the Form D
- Sold
- 73.5%Form D, Jan 8, 2014; the % is our arithmetic
- Selling commissions
- Form D Item 15; the % is our arithmetic$2,104,723 · 1.1% of offering
- Financing
- Zero coupon. Cash flow from the property goes to servicing the debt.How it is financed ↓
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
Figures come from SEC Form D filings unless a source is cited. Sponsor-stated figures are as reported by the sponsor; Top1031 does not independently audit them. On a 45-day clock? Find day 45 and day 180 →
Using this record to judge the sponsor? A licensed 1031 specialist from our affiliated partner can talk it through with you.
Ask a 1031 specialist about this recordFree. About: United Healthcare Services, Inc. Headquarters Building. Top1031 is not a broker-dealer.What did the Trust own?
The Trust's asset is the Class A office complex at 9700–9800 Health Care Lane in Minnetonka, Minnesota. 1 It opened in 2013 as UnitedHealth's benefits headquarters, consolidating roughly 3,300 employees from four divisions onto one campus. In May 2013 UnitedHealth Group sold both buildings for $146 million to an affiliate of Mesirow Financial and leased them back for 20 years. 2 The Trust owns the beneficial interests in Healthcare Lane Propco, DST, the entity holding title. 1
- Reported location
- Minnetonka, MN
- Property size
- 635,000 square feet; two-building complex
How was it financed, and what did it cost to sell?
The sponsor's executive summary describes $152 million of non-recourse debt — a $126 million A-Note and a $26 million B-Note — at the property-owning DST; non-recourse means the lender's remedy runs to the building, not to investors' other assets. 1
Debt
- Financing
- Zero coupon. Cash flow from the property goes to servicing the debt.
Costs and terms from the Form D
- Selling commissions
- $2,104,723 · 1.1% of offering
- Finders’ fees
- $0
- Paid to officers, directors and promoters
- $0 · 0.0% of offeringForm D Item 16
- Broker-dealers named in the Form D
- 1 named in the Form D
Show the firms
- Clearview Trading Advisors, Inc. · CRD 142873
Individual representatives named in Item 12 are not listed.
- Date of first sale
- Aug 26, 2013
- Minimum investment
- Not in the Form D
Form D Item 15 and Item 16 amounts may be the issuer’s estimates; each percentage is Top1031’s arithmetic on two Form D figures. Item 16 can overlap Item 15, so Top1031 does not add them together.
Who's behind the Trust?
Net Lease Capital Advisors structures 1031 exchange programs around single-tenant corporate real estate leased to large credit tenants; the Form D lists this Trust as Delaware-formed with a Nashua, New Hampshire address in care of the firm. 3 The offering follows that pattern: a long-dated absolute-net lease to a subsidiary of a large public company, held through a two-tier Holdco/Propco DST structure. 1
- Sponsor
- Offerings on record
What does the SEC record show?
A single Form D — the short notice an issuer files after selling unregistered securities — was filed under Rule 506(b), the private-placement exemption that bars public advertising and limits purchasers to accredited investors; it reports a first sale on August 26, 2013. 3 No amendment or termination notice follows, so the public record does not show a close.
- Legal Trust name
- HEALTHCARE LANE HOLDCO, DST
- SEC CIK
- 1596171
- First Form D
- Jan 8, 2014
- Latest Form D
- Jan 8, 2014
- Filings on record
- 1
- Offered under
- Rule 506(b)General advertising and solicitation are not permitted under this exemption.
- Source filing
SEC Form D filings, newest first
| Filed | Form | Offering amount | Amount sold | Filing on SEC EDGAR |
|---|---|---|---|---|
| Form D | $177,074,367 | $130,174,126 | EDGAR |
Amounts, investor counts and minimums are as filed with the SEC on Form D. The change lines are Top1031’s arithmetic between consecutive filings; a new Form D notice starts a new count.
A Form D is the notice a sponsor files when it starts raising money. A Form D filing does not mean the SEC approved, endorsed, or verified the offering.
Common questions
- What happened to United Healthcare Services, Inc. Headquarters Building?
- United Healthcare Services, Inc. Headquarters Building is a Historical offering. Last Form D filed Jan 8, 2014.
- What does an "absolute-net" lease mean here?
- It is the most tenant-heavy form of net lease. The sponsor's executive summary reports that United HealthCare Services is responsible for operations, maintenance, repairs, replacements, and the roof and structural portions of the buildings, leaving the Trust with few direct property expenses. Offering documents will spell out any carve-outs and the landlord's remaining obligations.
- Who is the tenant, and is UnitedHealth Group on the hook?
- The tenant is United HealthCare Services, Inc., which the sponsor describes as a wholly owned subsidiary of UnitedHealth Group; the complex is reported as 100% leased to it. Whether the parent guarantees the subsidiary's lease obligations is not established in the public record and must be checked in the lease and offering documents.
- Why are there two DSTs involved?
- Title to the property is held by Healthcare Lane Propco, DST, and all beneficial interests in that owner trust are held by Healthcare Lane Holdco, DST — the entity that filed with the SEC and in which investors hold interests. Two-tier structures are common in leveraged net-lease programs; investor rights at each level differ and are defined in the trust agreements.
- Is the Trust leveraged?
- The sponsor's executive summary reports $152 million of non-recourse debt, split into a $126 million A-Note and a $26 million B-Note, at the property-owning DST. That figure is sponsor-reported for the 2013 capitalization and is not independently verified; loan terms, maturity, and any extension rights should be read in the offering documents and loan documents.
In the news
Sources
Show sources (6)Hide sources (6)
These links support the record as a whole; individual details may come from different sources.
DST interests are illiquid private securities. You may lose some or all of your investment. Distributions, tax treatment, and exit timing are not guaranteed. Review the current offering documents before investing.