Real estate is by far the largest alternative asset class, yet it is often overlooked by individual accredited investors. Historically, Propel(x) has focused on startups, venture funds, and hedge funds, but in today’s market, with startup valuations fluctuating and exits delayed, investors are seeking more stability and predictable cash flow in their portfolios.
That’s why we partnered with SPHERE Investments, a data-driven real estate asset manager, to bring high-quality healthcare real estate opportunities to Propel(x) investors. SPHERE’s track record speaks for itself:
- 23% average IRR (realized returns) across completed healthcare investments
- 10%+ average annual cash yield
- $1+ billion in assets under management (AuM) across the U.S. and Europe
Through this partnership, we’re offering two distinct 506(c) investment opportunities: a direct property investment and a healthcare real estate fund.
Current Opportunities
1. Crestview Senior Living – Cabot, Arkansas
- Target IRR: 17.9% (Conventional) – 19.5% (Agency)
- Target Equity Multiple: Up to 2.7x
- Hold Period: ~7 years
Crestview is a newly built Class A senior living community in Cabot, Arkansas, offering assisted living, memory care, and independent living across modern facilities completed between 2020 and 2024. The property benefits from strong demographic tailwinds, including a rapidly growing 85+ population driving sustained demand for high-quality senior care.
2. SPHERE Healthcare Value Fund – Diversified Fund Investment
- Target IRR: 20%
- Target Average Annual Yield: 7.5%
- Hold Period: 3–4 years
- Target Raise: $50 million
The SPHERE Healthcare Value Fund leverages SPHERE’s AI-driven analytics and deep healthcare domain expertise to acquire high-quality, income-generating outpatient medical facilities across the U.S. The fund is structured to deliver:
- Stable cash flow through long-term leases
- Diversification across multiple assets and geographies
- Strategic value creation through portfolio aggregation, lease optimization, and operational improvements
Why IRR Matters for Real Estate Investors
The Internal Rate of Return (IRR) is a key metric for evaluating real estate investments because it accounts for both the timing and magnitude of cash flows. Unlike simple ROI, which measures total return, IRR answers the question:
“At what annualized rate is my invested capital expected to grow over the holding period?”
For real estate investors, IRR helps quantify:
- Cash Flow Efficiency: How effectively your capital is generating income over time
- Investment Comparisons: Across property types, fund structures, and geographic markets
Timing Sensitivity: Earlier returns are more valuable—IRR captures this
Healthcare Real Estate Benchmarks (SPHERE / Propel(x):)
| Asset Type | Typical IRR Range | Typical Cash Yield |
| Direct MOB/ASC | 12–18% | 6–8% |
| Diversified Healthcare Fund | 18–22% | 7–8% |
| SPHERE Track Record | 23% realized | 10% average |
Why Healthcare Real Estate?
Healthcare real estate is uniquely positioned for long-term growth and resilience:
- Aging U.S. population: 62+ million Americans 65+ today, projected to reach 84 million by 2054
- Rising healthcare spending: Expected to reach $5.76 trillion by 2031 (20% of U.S. GDP)
- Shift to outpatient care: Payers and providers are increasingly moving procedures to MOBs and ASCs
Recession-resistant: Healthcare real estate demonstrates low correlation with broader economic cycles
How Propel(x) and SPHERE Work Together
Through this partnership:
- Propel(x) provides accredited U.S. investors access to SPHERE’s proprietary deal flow and fund structures.
- SPHERE applies AI, machine learning, and healthcare data analytics to identify opportunities, optimize operations, and maximize risk-adjusted returns.
Investments are offered via SPVs (Special Purpose Vehicles) structured as Delaware LLCs, making it simple for investors to participate in both direct properties and fund investments.
