HPA Exchange Launches $19.92M Dallas Children’s Hospital DST Offering
HPA Exchange LLC, a healthcare real estate investment sponsor created by the executive team of Healthcare Property Advisors, announced the launch of HPA Exchange – Vital Medical Dallas TX DST, comprising an 86,880-square-foot hospital occupied and operated by Nexus Dallas Children’s Hospital.
The Delaware statutory trust offering is structured to qualify as replacement property for investors seeking to complete a tax-deferred exchange under Section 1031 of the Internal Revenue Code. It seeks to raise $9.67 million in equity from accredited investors and added an additional $10.25 million in debt to acquire the asset.
“This offering exemplifies our strategy of providing accredited investors with access to mission-critical healthcare assets backed by strong operators on long-term leases via the tax-advantaged Section 1031 exchange structure,” said Robert Lee, co-president and chief investment officer of HPA Exchange. “With Nexus Health Systems’ established track record and the property’s modern, purpose-built design, we believe this investment opportunity represents the type of high-quality real estate with a potential for recession resilience that DST investors are seeking.”
Located at 9525 Greenville Ave., the 3.64-acre property recently acquired by HPA Exchange was built-to-suit Nexus Dallas Children’s Hospital, a subsidiary of Nexus Health Systems, via a full building renovation in 2022. The property is on an absolute triple net lease. The hospital includes 30 beds, with the potential to expand to 60.
Nexus Dallas Children’s Hospital cares for patients of all ages with brain and spinal cord injuries, complex medical conditions, and other serious diagnoses. Acting as a bridge between acute hospitals and home, it offers seven care programs across 10 specialized services, including: cognitive therapy, occupational therapy, outpatient services, physical therapy, psychiatry and behavioral management, recreational therapy, respiratory/pulmonary therapy, speech therapy, vocational therapy, and wound care.
“This facility aligns perfectly with our mission to deliver institutional-quality healthcare real estate that supports providers and has the potential to create long-term value for our investors,” added Thùy Turner, co-president and chief operating officer of HPA Exchange. “The Nexus Dallas Children’s Hospital property exemplifies these goals, with its strong fundamentals and long-term lease structure.”
Turner continued: “With a focus on high-growth markets and evolving healthcare delivery models, we seek to help investors diversify into real estate that serves critical needs, and this Dallas property is a prime example.”
Home to an estimated 8.3 million people as of July 2024, according to the U.S. Census Bureau, the Dallas-Fort Worth-Arlington metropolitan statistical area experienced more than 9.2% growth in population between 2019 and 2024. The area is home to approximately 120 hospitals and primary care facilities, earning more than $28 billion in combined revenue each year, Cause IQ reports.
The managing broker-dealer for HPA Exchange – Vital Medical Dallas TX DST is American Alternative Capital LLC. Peak Capital Solutions is the wholesaler.
Earlier this year, HPA Exchange fully subscribed HPA Dignity Health Arizona DST, affiliated with a full-service micro-hospital in Phoenix. The DST offering raised $15.4 million.
Headquartered in Brea, Calif., HPA Exchange is a real estate investment sponsor that provides private placement offerings focused on medical properties anchored by credit-tenant healthcare systems, physician groups, life science groups and other outpatient facilities. A joint venture between Vital Capital Partners and The Innovation Institute, HPA Exchange was created in 2024 by the executive team of Healthcare Property Advisors, an institutional real estate fund manager, owner, operator and developer. The vertical integration of the firm allows HPA to leverage the relationships with a large network of healthcare systems, and provide active asset management, investment and development of medical office buildings and outpatient facilities.
Healthcare Property Advisors’ executive team has acquired or advised on the investment of more than $1 billion in healthcare-related properties since 2014.
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