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HPA Exchange Launches $15.4 Million DST Offering for Dignity Health Micro-Hospital in Phoenix

By Mari Nicholson

HPA Exchange Launches $15.4 Million DST Offering for Dignity Health Micro-Hospital in Phoenix

HPA Exchange LLC, a healthcare real estate investment sponsor created by the executive team of Healthcare Property Advisors, has launched HPA Dignity Health Arizona DST. Seeking to raise $15.4 million in equity from accredited investors, the Delaware statutory trust offering consists of a full-service micro-hospital in Phoenix that is 100% leased on an absolute triple net basis to Dignity Health.

“We are incredibly excited to introduce HPA Dignity Health Arizona DST to broker-dealers, registered investment advisory firms, financial advisers, and their accredited investor clients,” said Robert Lee, co-president and chief investment officer of HPA Exchange. “This offering is a prime example of our commitment to bringing institutional-quality, mission-critical healthcare real estate investment opportunities to the alternative investment community. Backed by a strong tenant and our team’s extensive knowledge and experience, we are confident in this offering’s long-term investment fundamentals.”

HPA Exchange, which launched in May 2024, acquired the 3.92-acre property for approximately $30.3 million in July 2024.

Located at 7171 S. 51st Drive, the 3.92-acre property was built-to-suit and completed in 2014 for Arizona General, a wholly owned subsidiary of Dignity Health. The acute care micro-hospital is in Phoenix’s Laveen Village, approximately eight miles southwest of downtown. Including 38,900 rentable square feet, the hospital includes: a 24/7 emergency department; 16 patient beds; 10 emergency room beds; two advanced operating suites for surgical procedures; a full onsite laboratory; a full radiology suite with 64-slide CT scan, X-ray and ultrasound capabilities; a pharmacy; and a cafeteria. The hospital’s lease is guaranteed by Dignity Health.

A multistate nonprofit network, Dignity Health is a part of CommonSpirit Health, a nonprofit health system with more than 2,200 care sites in 24 states, 35,000 providers and 45,000 nurses. The health system has a Moody’s credit rating of A3 as of March 2024 and reported revenues of $34.6 billion in its fiscal year 2023. Dignity Health has more than 10,000 physicians, 400 care centers, and a reported $10.8 billion 2023 annual revenue. As a part of CommonSpirit Health, Dignity Health is the largest Catholic health system in the nation, according to rankings from Becker’s Hospital Review.

“This micro-hospital, leased to a leading healthcare system like Dignity Health, exemplifies the type of resilient, high-quality properties we seek to offer through HPA Exchange,” said Thuy Turner, co-president and chief operating officer. “Not only does this facility provide robust healthcare access for the community, but we believe it will also resonate with investors seeking access healthcare investment opportunities for Section 1031 exchanges and cash investments through the Delaware statutory trust structure.”

Headquartered in Brea, Calif., HPA Exchange LLC 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. Created by the executive team of Healthcare Property Advisors – a vertically integrated healthcare real estate owner, investor, and operator – HPA leverages its relationships with a large network of healthcare systems, and provides 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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