WICHITA, KS-DeSanto Realty Group recently closed on an asset class it hadn’t tried before, the purchase of the Cypress Medical office complex here. The tenant-in-common sponsor, which is more used to buying office, residential and retail properties, paid $25.7 million for the property in the area’s Northeast Medical Corridor.

The complex houses an ambulatory surgery center operated by Symbion Healthcare, as well as outpatient care facilities, in 74,518 sf of space spread through two buildings. The property was built in three phases from 2001-03, and is 100% leased, says Michael Black, director of finance for DeSanto.

“This is an asset class that’s a little out of our area,” Blank tells GlobeSt.com. “But we view this as a very favorable property, the asset offers a very stable cash flow, with most of the tenants with 10-year leases.” He says the complex is 95% leased, but is 100% guaranteed. The doctors that lease space in the building are the sellers of the property, and though there’s 3,690 sf of vacant space, the deal included that the doctors would pay the lease for that space until it is filled. “Many of the doctors in the building are also investors in Symbion, they have a vested interest to want to stay there,” Blank says.

He says there’s incredible demand for medical office in the area. “This is a very solid corridor where all the growth is in Wichita. There are many other medical facilities in the area, including a heart and spine hospital. The source of real success is the Symbion center, which handles about 7,000 cases a year,” Blank says.

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