HPA Exchange Announces $9.67 Million Investment in Dallas Children’s Hospital

HPA Exchange Launches $9.67 Million DST Offering

HPA Exchange LLC, a prominent player in the healthcare real estate investment sector, is making headlines with its recent announcement regarding a significant equity offering. The company, established by Healthcare Property Advisors, has unveiled plans to raise $9.67 million through the Delaware Statutory Trust (DST) model. This offering is particularly focused on the Nexus Dallas Children's Hospital, a dedicated facility that has been operationalized through a comprehensive renovation carried out in 2022.

Located at 9525 Greenville Avenue in Dallas, Texas, this hospital spans 86,880 square feet and represents a key investment opportunity for accredited investors. The offering is strategically designed to meet the requirements for tax-deferred exchanges as stipulated under Section 1031 of the Internal Revenue Code. Investors in the DST will have access to a property that is not only highly specialized but is also backed by a strong operational team which is crucial in the healthcare industry.

According to Robert Lee, co-president and chief investment officer of HPA Exchange, “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.” The strong operational background of Nexus Health Systems bolsters confidence in the investment's potential reliability and growth.

The Nexus Dallas Children's Hospital is uniquely designed to cater to patients of all ages facing complex medical challenges. It operates with a current capacity of 30 beds, with the potential for expansion up to 60 beds. The facility serves as a critical bridge between acute hospitals and home care, offering a comprehensive suite of seven distinct care programs. These services include cognitive therapy, occupational therapy, physical therapy, and psychiatric care among others, all aimed at addressing the varied needs of its patients.

Thùy Turner, co-president and chief operating officer of HPA Exchange, emphasized the facility’s alignment with the company's mission to foster long-term value through quality healthcare real estate investments. Turner stated, “The Nexus Dallas Children's Hospital property exemplifies these goals, with its strong fundamentals and long-term lease structure.” The intention is to refine the real estate offerings to meet the evolving demands of healthcare delivery models, ensuring that investors can diversify into properties that address important healthcare needs.

The healthcare market in Dallas is burgeoning, with a notable population growth rate of over 9.2% between 2019 and 2024, according to data from the U.S. Census Bureau. This growth has consequentially expanded the healthcare infrastructure, with about 120 hospitals and primary care facilities contributing to an impressive combined revenue exceeding $28 billion annually.

For HPA Exchange, this offering is just one in a series of strategic investments aimed at cultivating high-quality healthcare real estate. The company has secured American Alternative Capital, LLC to manage dealings and Peak Capital Solutions as its wholesaler for this project.

Founded relatively recently in 2024, HPA Exchange aims to provide core and core-plus institutional-grade properties tied to leading healthcare systems, physician groups, and life science organizations, thereby catering specifically to outpatient needs. The management team comes with extensive experience within the healthcare real estate sector, averaging over 20 years each in their collective expertise.

As HPA Exchange continues to develop its offerings, it intends to promote investments that enhance healthcare services while delivering consistent returns for its investors. For more details about HPA Exchange and this initiative, interested parties can visit their official website at www.hpaxchange.com.

This initiative is an assertion of HPA Exchange’s commitment to the vital intersection of investment and healthcare. Given the steady demand for quality healthcare services and the ongoing evolution of healthcare delivery, this is a timely and critical investment opportunity in the Dallas area.