How our Las Cruces healthcare development demonstrates our investment approach in action
When we evaluate potential investments at Fund Momentum, we're looking for opportunities that combine strong financial returns with meaningful community impact. Our recent healthcare development in Las Cruces, New Mexico perfectly illustrates how this approach works in practice—and why it creates value for both investors and communities.
Las Cruces presented a compelling investment opportunity driven by clear demographic and economic trends. As the second-largest city in New Mexico with over 100,000 residents, Las Cruces was experiencing steady population growth, particularly among retirees and families seeking affordable living costs and quality of life.
However, like many growing communities, the healthcare infrastructure hadn't kept pace with population growth. The region needed expanded medical facilities to serve both current residents and future anticipated growth. This gap between demand and supply created an ideal investment opportunity.
When the Three Crosses Regional Hospital announced plans for a new 34-acre state-of-the-art campus, it created an anchor that would drive demand for complementary healthcare services. The opportunity to develop a 12-acre medical facility adjacent to this major healthcare hub offered the kind of strategic positioning that defines successful real estate investment.
Our Las Cruces healthcare development targets 10-15% annual returns while providing investors with direct ownership in an essential community asset. The investment structure demonstrates several key principles of our approach:
Strategic Location: The 12-acre site's adjacency to the Three Crosses Regional Hospital creates natural synergies and patient flow that support long-term occupancy and rental growth.
Diversified Revenue Streams: The development will accommodate multiple healthcare tenants, from specialist practices to outpatient services, reducing dependence on any single tenant or service type.
Value Creation Timeline: The development process allows for real-time market adaptation and tenant pre-leasing, reducing vacancy risk and optimizing rental rates.
Community Integration: The project connects to the broader 110-acre mixed-use development, creating a comprehensive healthcare and wellness destination that serves the entire region.
Fund Momentum uses a five-point due diligence process to fully analyze and assess real estate opportunities. This process allows for a comprehensive view into the risk environment of a potential project and includes examination of market, financial, physical, legal and regulatory landscape. It also dives into community impact, giving a comprehensive assessment of the needs, process, returns and impact of a project.
The Las Cruces project demonstrates the value of the holistic approach in our five-point due diligence process.
Market Fundamentals: Las Cruces demonstrated strong population growth, an aging demographic requiring increased healthcare services, and limited competing healthcare infrastructure.
Financial Analysis: Our projections showed strong rental potential based on comparable healthcare facilities in similar markets, with multiple exit strategies including sale to healthcare systems or real estate investment trusts.
Physical Assessment: The site offered excellent accessibility, appropriate zoning, and infrastructure capacity to support a modern healthcare facility.
Legal and Regulatory: The project received municipal support as part of the broader healthcare campus development, with streamlined permitting and favorable zoning considerations.
Community Impact: The development directly addresses documented healthcare access needs while creating construction and permanent employment opportunities.
Momentum Fund’s unique investment platform makes this institutional-quality opportunity accessible to individual investors who previously couldn't participate in direct healthcare real estate development.
“We aren’t just looking for good investments, we are looking at ways to reshape investments to expand access and create connection and value-sharing within communities,” said Bob Pofhal, CEO, Community Builders International.
Through the Fund Momentum online platform, investors can:
Review comprehensive due diligence: Access detailed market analysis, financial projections, and development plans that traditionally were available only to institutional investors.
Monitor progress in real-time: Track construction progress, pre-leasing activity, and key milestones through regular updates and transparent reporting.
Understand community impact: See direct connections between their investment and community healthcare improvements, job creation, and economic development.
The Las Cruces healthcare development targets 10-15% annual returns through a combination of development profits and long-term cash flow from medical tenants. This return profile reflects several factors:
Premium asset class: Healthcare real estate typically commands higher rents and longer lease terms than general commercial properties, supporting stable cash flows.
Value creation: Development profits from building new facilities in high-demand markets typically exceed returns from acquiring existing properties.
Strategic positioning: The adjacency to Three Crosses Regional Hospital creates competitive advantages that support premium pricing and high occupancy.
Market timing: Acquiring development sites before major healthcare infrastructure announcements allowed for optimal pricing and positioning.
Fund Momentum success metrics extend beyond financial returns. Investments are selected and monitored for measurable community benefits.
In the case of the Las Cruces healthcare development, community impact includes:
Healthcare Access: The development will expand availability of specialist medical services in a region that previously required residents to travel significant distances for certain treatments.
Job Creation: Construction will create immediate employment opportunities, while the completed facility will provide permanent healthcare and support jobs.
Economic Development: The healthcare campus will attract additional healthcare-related businesses and services, creating multiplier effects throughout the local economy.
Regional Growth: The development supports Las Cruces' evolution into a regional healthcare destination, attracting residents and businesses from surrounding areas.
No investment is without risk, and our approach includes comprehensive risk management:
Pre-leasing Strategy: We work with healthcare tenants during the development process to secure commitments before construction completion, reducing vacancy risk.
Market Diversification: While focused on healthcare, the broader mixed-use development provides economic diversification that supports long-term stability.
Professional Management: Our development partners bring decades of experience in healthcare real estate, reducing execution risk and optimizing tenant relationships.
Exit Flexibility: Multiple exit strategies provide flexibility to optimize returns based on market conditions at project completion.
Fund Momentum investors in the Las Cruces project benefit from institutional-quality investment management combined with direct ownership benefits:
Direct Ownership: Investors own actual stakes in the developed property, not shares in a fund that owns multiple properties.
Transparent Communication: Regular updates provide detailed information about development progress, market conditions, and financial performance.
Professional Management: Experienced teams handle all aspects of development, leasing, and ongoing property management.
Community Connection: Investors can see direct results of their investment through improved healthcare access and community development.
The Las Cruces healthcare development reinforces several key principles that guide our investment selection. These principles help serve as a roadmap to future investment opportunities and approaches by Fund Momentum.
Essential Services: Properties that serve essential community needs typically provide more stable and growing demand than purely discretionary commercial uses.
Strategic Partnerships: Collaborating with established healthcare systems and experienced developers reduces risk while enhancing market acceptance.
Technology Integration: Modern investment platforms can make complex real estate development accessible while maintaining appropriate investor protections.
Community Alignment: Investments that align with community development priorities often receive better municipal support and long-term market acceptance.
As this project progresses from development to operation, it will serve as a template for future Fund Momentum investments. The combination of strong financial returns, meaningful community impact, and accessible investment structure demonstrates how modern real estate investing can serve multiple stakeholders simultaneously.
For investors seeking alternatives to traditional stock and bond portfolios, healthcare real estate offers compelling advantages: stable demand driven by demographics, essential service classification that supports pricing power, and direct community benefit that aligns with impact investing principles.
The Las Cruces healthcare development shows how thoughtful investment selection, rigorous due diligence, and experienced execution can create value for investors while addressing critical community needs. This approach—combining financial discipline with social impact—defines the future of responsible real estate investing.
When the project reaches completion and begins generating rental income, our investors will see firsthand how direct real estate investment can provide both portfolio diversification and community contribution. More importantly, they'll understand how technology-enabled platforms can democratize access to institutional-quality investments while maintaining the personal connection between capital and community development.
This is real estate investing for the modern era: sophisticated, accessible, and impactful.