HWC Fund One — Series 3

Ten to fifteen year leases, where most commercial property runs three to five.

Triple-net structure — the tenant carries taxes, insurance and maintenance.

Healthcare demand that does not track the economic cycle.

Practices whose rent is a small fraction of revenue, so the tenant can pay through a downturn.

We reviewed the full portfolio, the lease schedule, and the tenant roster property by property. What stood out was not the yield. It was that the sponsor has sat on the other side of these leases — as the operator signing them.

A.J. Peak built and ran a dental group to roughly $100M in revenue across more than fifty locations. Tenant credit here is underwritten by someone who knows what a healthy practice's rent-to-revenue ratio should be, because he has run the practices. That is a different kind of diligence than a spreadsheet produces.

The risks are real and we name them: single-tenant exposure per building, the illiquidity of a five-year hold, and re-leasing risk at term. Each is mitigated by lease length, tenant quality, and diversification across sixty-seven properties rather than a handful.

A closing point on scale: this is a portfolio already assembled and leased, not a blind pool asking for capital before there is anything to underwrite.

A.J. Peak

Founder & CEO, Health Wealth Capital

Founded Peak Dental Services and grew it to a c.$100M revenue enterprise across 50+ locations — an Inc. 5000 company. Prior roles at Merrill Lynch and McKinsey. MBA, Kellogg. Author of two books on commercial real estate.

Screening & tenant scoring

Underwrite & valuation

LOI & negotiation

Tenant diligence & close

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