Cypress Exchange Properties Acquires Wisconsin Surgery Center
Cypress Exchange Properties has acquired a newly constructed orthopedic and spine ambulatory surgery center in Middleton, Wisconsin, expanding the healthcare real estate investment sponsor’s portfolio in the greater Madison market.
The approximately 12,000-square-foot facility contains three operating rooms and was developed at a total cost of about $10 million. Orthopedic & Spine Centers of Wisconsin operates the center.
The property is fully occupied under a new 15-year triple-net lease with annual rent increases of 3%. The lease is backed by guaranties from individual physicians and Healthcare Outcomes Performance Company, commonly known as HOPCo.
“This acquisition reflects our continued focus on high-quality healthcare properties that are supported by experienced operators, long-term leases and strong demand for outpatient medical services,” said Christopher Cumella, CEO of Cypress Exchange Properties.
The Rancho Santa Margarita, California-based sponsor plans to offer interests in the property to accredited investors seeking to complete tax-deferred 1031 exchanges. The offering will be made through the CXP Orthopedic Surgery Center DST, a Regulation D, Rule 506(c) private placement.
The Delaware statutory trust offering carries a minimum investment of $50,000 and is structured with 55% loan-to-value financing. Financial terms of the property acquisition were not disclosed.
Cypress Exchange Properties and its affiliates have acquired or developed more than 50 healthcare facilities across 11 states. Those properties represent more than $1 billion in gross asset value, according to the company.
Pictured: Madison ASC
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