Cypress Exchange Properties buys Madison-area surgery center for DST offering

Cypress Exchange Properties acquired a newly built orthopedic and spine ambulatory surgery center in Middleton, Wisconsin, for a Delaware statutory trust offering aimed at accredited investors using 1031 exchanges. The deal adds a fully leased outpatient asset in the Madison market with a 15-year triple-net lease and 3% annual rent bumps.

Why it matters: - The acquisition gives accredited investors access to a healthcare property tied to outpatient orthopedic and spine care, a segment that continues to benefit from demand for lower-cost surgical settings. - The asset is positioned for 1031 exchange buyers through a DST structure, which can appeal to investors seeking tax deferral and passive real estate exposure. - The fully leased, long-term nature of the property may appeal to income-focused investors looking for predictable cash flow.

What happened: - Cypress Exchange Properties acquired a newly constructed orthopedic and spine ambulatory surgery center in Middleton, Wisconsin, in the greater Madison market. - The property is being offered through the CXP Orthopedic Surgery Center DST, a Regulation D, Rule 506(c) private placement. - The offering targets accredited investors seeking to complete 1031 exchanges. - The facility is approximately 12,000 square feet and includes three operating rooms. - The center was developed at a total cost of about $10 million.

The details: - Orthopedic & Spine Centers of Wisconsin operates the facility. - The operator is a physician-led orthopedic and spine specialty group serving Madison and the surrounding region. - The property is fully leased under a new 15-year triple-net lease. - The lease includes 3% annual rental increases. - The lease is supported by guaranties from individual physicians and Healthcare Outcomes Performance Company, known as HOPCo. - The offering has a $50,000 minimum investment. - The structure uses 55% loan-to-value financing. - Securities related to the offering are being sold through Emerson Equity LLC, Member FINRA/SIPC, which is not affiliated with Cypress Exchange Properties. - Financial terms of the acquisition were not disclosed. - Cypress Exchange Properties directs investors to the company’s website or info@cypressxp.com for offering details. - Cypress Exchange Properties is based in Rancho Santa Margarita, California. - Cypress Exchange Properties and its affiliates say they have acquired or developed more than 50 healthcare facilities across 11 states, representing more than $1 billion in gross asset value.

Between the lines: - The transaction fits Cypress Exchange Properties’ focus on purpose-built outpatient medical facilities rather than general commercial real estate. - The physician guarantees and HOPCo backing may help strengthen credit confidence around the lease, though the offering still carries the usual risks of private real estate investments. - The Madison-area location may offer a stable healthcare demand base because the property serves a regional outpatient market.

What's next: - Cypress Exchange Properties will market the DST offering to accredited investors who want to deploy capital into a healthcare real estate asset. - The full investment outcome will depend on occupancy, lease performance and financing conditions over the hold period. - Investors can review more information through the company’s announcement or by email at info@cypressxp.com.

The bottom line: - Cypress Exchange Properties is packaging a newly built, fully leased Wisconsin surgery center into a DST aimed at tax-advantaged investors seeking healthcare real estate income.