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Vital Capital Medical - Temple TX DST
Coming Soon / Under Review • HPA Exchange
Investment Overview
The Vital Capital Medical - Temple TX DST is a $34,551,889 healthcare-focused investment centered on the Temple Rehabilitation Hospital, a 100% occupied, Class A medical facility in Temple, Texas. Constructed in 2018, this purpose-built, 36-bed inpatient hospital spans 38,817 square feet and is strategically positioned on the I-35 corridor between Austin and Waco. The property is leased on an absolute triple-net (NNN) basis to an affiliate of Lifepoint Health—one of the nation's largest rehabilitation operators—with approximately 7.5 years of lease term remaining. Sponsored by HPA Exchange, the offering targets a Year 1 yield of 7.32% and includes a full UPREIT option for long-term tax deferral.
Investment Highlights
- The investment features a single, 36-bed inpatient rehabilitation hospital built in 2018 that provides specialized treatment for stroke, brain injury, and neurological rehabilitation.
- The facility is 100% leased to Lifepoint Health, a leading national inpatient rehabilitation operator, under a NNN structure that places all maintenance and operational costs on the tenant.
- Located in the Temple Medical District along US Highway 190, the property serves the high-growth Killeen-Temple MSA, benefiting from a healthcare employment base and proximity to major regional hubs like Austin.
- The offering is structured with a 53.81% loan-to-value (LTV) ratio featuring a 7-year fixed-rate loan at 5.65%, supporting a projected Year 1 investor yield of 7.32%.
- Investors have access to a full UPREIT option, providing a potential pathway to exchange DST interests into a REIT for future liquidity and diversification.
Quick Facts
Sponsor
HPA Exchange
Status
Coming Soon / Under Review
Property Type
NNN Medical
Location
TX
Estimated Hold Period
7 Years
In-Place Loan
51% LTV
721 Exchange Exit
Optional
Current Yield
5.35%
Average Yield
5.4%
Est. Avg. Tax-Adjusted Yield⁴
7%
Cap Rate Equivalent⁵
7.59%
Contact
Gerald F. "Jerry" Baker, III
Founder, Managing Principal
D 415.579.1660
M 415.278.8503
E jerry@baker1031.com
Income Forecast
5.35%
Year 1
5.61%
Year 2
5.89%
Year 3
6.21%
Year 4
4.6%
Year 5
4.92%
Year 6
5.25%
Year 7
0%
Year 8
0%
Year 9
0%
Year 10
Property images depicted may not be pictures of properties in any current offering and may be representative.
Investment opportunities presented herein are subject to immediate change and may be withdrawn without prior notice. Availability is fluid and often fluctuates rapidly; an offering may close before updated notification is provided. Investors are strictly advised to contact their authorized representative to confirm the current status of any investment prior to committing funds.
The information provided above is for summary purposes only and may be incomplete, outdated, or contain technical inaccuracies. This summary is qualified in its entirety by, and should be read in conjunction with, the relevant Private Placement Memorandum (PPM) and all associated supplements. Prospective investors must rely solely on the PPM and formal offering documents when evaluating the merits and risks of an investment.
⁴Sponsor's Cost Segregation analysis is currently incomplete; therefore, to estimate depreciation benefits, it is assumed the investor is in a 40% combined marginal tax bracket with no current depreciation basis in the property outside of this investment. Average income shielding for this DST is estimated at 45% based on standard IRS straight-line depreciation recovery periods for commercial real estate (39 years), as detailed in this Commercial Real Estate Depreciation Guide. Please refer to the Private Placement Memorandum (PPM) for specifics regarding a cost segregation; notably, even if the Trust does not perform a property-wide study, an individual investor may have the right to commission a private cost segregation study for their specific fractional interest to potentially unlock accelerated or "bonus" depreciation through a change in accounting method.
⁵The "Net-Adjusted Equivalency Cap Rate" is a comparative metric designed to normalize the returns of an all-inclusive Delaware Statutory Trust (DST) against a direct-ownership Net Lease (NNN) property. This metric is calculated by "reversing" a target cash-on-cash return to reconstruct a required Net Operating Income (NOI), adding back debt service and amortizing estimated acquisition, financing, and disposition "friction" costs over a 10-year holding period. This calculation is provided for educational and illustrative purposes only and is not a guarantee of future performance or an offer to sell securities. Limitations include the reliance on generalized market assumptions; individual property performance, actual interest rates, and specific transaction costs will vary. This should not be used as the primary basis for any investment decision. Estimates are derived from the following industry benchmarks: Acquisition Costs (2.5% - NAR Commercial), Loan Fees (1.0% - CREFC Guidelines), Sale Costs (6.0% - Altus Group), and Debt Assumptions (6.5% Interest/30-Yr Amort. - Select Commercial).
