Cypress Exchange Properties has acquired a newly built orthopedic and spine ASC in Middleton, Wis., which it will offer to accredited investors through a Delaware Statutory Trust program, CityBiz reported July 29.
The roughly 12,000-square-foot facility has three operating rooms and cost about $10 million to develop. Orthopedic & Spine Centers of Wisconsin, a physician-led practice serving the Madison market, operates the center under a new 15-year triple-net lease with 3% annual rent escalations. The lease carries guaranties from the practice’s physician owners and Healthcare Outcomes Performance Company.
The center will be offered through the CXP Orthopedic Surgery Center DST, a Regulation D, Rule 506(c) private placement for accredited investors pursuing Section 1031 like-kind exchanges. The offering carries a $50,000 minimum investment and 55% loan-to-value financing. Cypress Exchange Properties did not disclose acquisition terms.
Cypress Exchange Properties has acquired or developed more than 50 healthcare facilities across 11 states, with a combined gross asset value exceeding $1 billion.
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