CAI Investments Completes $22.3M Capital Raise for Second Manufacturing Essential Asset DST

Real estate development company CAI Investments has completed the $22.28 million capital raise for Manufacturing Essential Asset II, DST, i.e., MEA II.

The associated 96,204-square-foot industrial facility, located in Honea Path, S.C., is uniquely positioned, according to the Administration for Strategic Preparedness and Response, or ASPR – part of the U.S. Department of Health and Human Services – as the only manufacturing plant in North America capable of producing polyisoprene 9000, a key component in latex-free surgical gloves.

Alts Wire announced the launch of the MEA II in September 2024.

Leased long-term to an affiliate of U.S. Medical Glove Company (USMGC), CAI said the South Carolina property near Greenville plays a key role in a supply chain that strengthens domestic manufacturing capabilities. Backed by the U.S. Department of Defense and HHS, USMGC is set to become the largest U.S.-based manufacturer of nitrile and non-latex surgical gloves, capable of producing 60 million pairs of gloves annually and eliminating dependency on southeast Asia.

“We appreciate the trust of our investors in bringing MEA II to completion,” said Christopher Beavor, founder of CAI Investments. “This project strengthens our portfolio and reinforces our focus on supporting essential industries.”

Structured as an all-cash, debt-free DST, MEA II offered investors a targeted 7% first year, cash-on-cash distribution. According to the company, the DST’s “alignment with an essential sector and stable tenant profile makes it a potentially reliable investment option during uncertain economic times.”

Additionally, CAI said MEA I – the flagship DST in Harvard, Ill. – remains a vital component of USMGC’s vertically integrated supply chain. Serving as the global headquarters and primary glove production site, MEA I, previously reported on by Alts Wire works hand in hand with MEA II to ensure a stable domestic supply of critical products. MEA is still open to investors.

Further, according to CAI, USMGC’s Harvard facility has been tasked by ASPR to increase U.S. nitrile glove production by 2.31 billion gloves annually. The Harvard facility currently operates 27 lines, each capable of producing around 90 million pairs of nitrile gloves annually, according to USMGC.

CAI said its selection of USMGC as a tenant highlights its ability to source and secure tenants in high-demand sectors with diverse client bases. USMGC’s clients include public sector entities such as the U.S. Army, Federal Emergency Management Agency, i.e., FEMA, and the Department of Homeland Security, as well as private entities including Adventist Health, Marriott, and Ansell. In addition, USMGC has multiple revenue streams, such as glove production machinery sales, nitrile recycling, and PPE.

Headquartered in Las Vegas, CAI Investments specializes in the financing, development, and management of commercial properties across the United States.

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