We are an investor-centric firm focused on both institutional capital joint ventures as well as private capital and tax-advantaged real estate investments. HPA places its investors first, starting with stable, resilient investments poised to perform in both successful and challenging economic environments. While creating freedom of day-to-day management for our investors!
Our mission at HPA XChange is to bring institutional quality real estate investment management to private capital investors, specifically in the rapidly evolving healthcare real estate sector. We believe in upholding institutional quality standards with the speed and forward thinking of entrepreneurial execution. HPA XChange invests in high-quality recession resilient traditional medical office real estate, and into the rapidly evolving life sciences, and behavioral health space.
HPA XChange is a vertically integrated, internally managed real estate investment platform which acquires, owns, and actively manages single and multi-tenant medical and life science centric properties throughout the United States. We focus on strategically essential and mission-critical assets with primarily investment grade or high-quality tenants and groups. We approach each acquisition with a proactive asset management perspective creating value.
The HPA XChange platform offers private investment programs, with both short and long-term goals, to individual investors seeking solutions aimed at providing predictable income, capital growth, and tax benefits. The HPA XChange team brings proven institutional expertise and a well-tuned real estate investment platform to private investors and seeks to become the leader in the healthcare real estate sector for private investors. We provide both investors and sellers of healthcare real estate the ability to accomplish their short and long-term goals in a tax-beneficial manner through DST ownership, 721 exchange structures among other traditional join venture, fund vehicles and tax-efficient real estate strategies
DST Investments
Many investors get to a point in their lives where they choose not to continue to operate their real estate assets in an active capacity. While some are engaged in estate planning and want to leave the equity and income stream to their heirs, who may not be prepared or have the desire to actively manage such assets, and others may want to be removed from such involvement, for more time for themselves.
DST and fund vehicles are best for investors who may prefer to move away from the intensive day-to-day management, an active-owner role requires. We structure portfolios that function as passive income, while still leaving the owner in full control of their real estate investment. We implement a “Structured 1031 Exchange” for such acquisitions to defer any capital gains taxes and/or recapture of depreciation. Delaware Statutory Trusts (DSTs) provide real estate investors with a way to invest passively in commercial real estate. HPA XChange acquires high-quality commercial income properties, places non-recourse financing on the properties and provides institutional quality property, asset management, and reporting while providing monthly distributions to all investors. Ownership in the Trust is based on a pro-rata share of the equity invested.
For example, if a property requires $5 million of equity to acquire and an investor purchases $1 million worth of the Trust, they will own 20% of the Trust and, as such, shall receive 20% of the cash flow distributions as well as 20% of the depreciation allocation to shelter the income from income taxes. The Delaware Statutory Trust ownership structure makes these investments ideal for investors who are in a 1031 exchange. The investment amount is flexible, starting at $100,000, which is also beneficial to 1031 exchange investors who are trying to invest an amount equivalent to their down-leg exchange.