[Private Deal Alert] Real Estate Investment Offering For Medical Office Building With 12% Target Annual Returns

While new trends in real estate come and go, one thing remains constant: the need for healthcare. Since this need is unlikely to go away anytime soon, healthcare-related real estate can be an attractive investment.

CAN Community Health Clinic Offering

The online real estate investing platform CrowdStreet has been linking real estate developers and project owners with investors for quite some time. If you’ve been looking for an investment in the medical real estate sector, their latest offering may be of interest to you. The CAN Community Health Clinic in Denville, New Jersey is seeking equity partners.

Investors can get an equity share in this Class A medical office building in the picturesque Township of Denville, which is just over 30 minutes from Manhattan. The project’s sponsor, Cypress West, is looking to raise $5,000,000 with this offering.

In exchange, investors will get the opportunity to buy into a 17,000 square foot facility with a single tenant with 14.5 years remaining on a triple net lease. That means the building’s occupant is also paying property tax, maintenance and insurance on the facility.

Projected Revenue, Investment Minimums and Other Details

Investors can join Cypress West as equity owners of CAN Community Health Clinic with a minimum investment of $25,000. The buy-in cost and deal structure mandates that only accredited investors are eligible to take part in the offering, which is not available to self-directed IRA holders.

Interested investors must submit offers on this core-plus investment offering by April 8, 2022 and make their payment no later than April 11, 2022. 

CAN Community Health Clinic is projecting an internal rate of return (IRR) of 12% along with a 1.4x equity multiple. The targeted average cash yield is 7% and the offering has a 3 year target hold period.

View more CrowdStreet offerings.

About the Project Sponsor

The CAN Community Health Clinic Offering is sponsored by Cypress West Partners, LLC. This investment group, which consists mainly of institutional investors and private equity contributors, has been active since 2013. Its mission is to identify underperforming real estate assets in the medical field with upside potential.

Once it identifies these assets, Cypress West looks to improve revenue with innovative management and aggressive leasing of any available spaces. Long term, Cyprus West develops projects with an eye on building value and then selling its assets off to larger funds like real estate investment trusts (REITs).

Browse more private real estate offerings on Benzinga Alternative Investments.

Photo: Courtesy of CrowdStreet