SCIONHEALTH

INVESTMENT HIGHLIGHTS

• NATIONAL HEALTH SYSTEM – ScionHealth was formed in 2021 after the merger of Kindred Health and Life Point Health under Apollo Global Management. Employing over 25,000 individuals, the system now comprises 94 hospital campuses and eight senior living communities across 25 states in the U.S.
• PRIVATE EQUITY BACKING – ScionHealth is part of the Apollo Global Management portfolio, which has $74.2B in assets under management. With over 30 years of experience, Apollo has a robust track record of partnering with businesses for their continued success.
• PASSIVE OWNERSHIP – Maintain completely passive income with this absolute NNN lease. With zero landlord responsibilities, this asset provides reliable, predictable income, which is ideal for those seeking a less management-intensive investment.
• LONG-TERM COMMITMENT – ScionHealth has shown a strong commitment to this location by signing a 40 year ground lease with five (5), 10-year options to renew, creating a rare opportunity for an investor to receive long-term income without needing to plan for turnover or vacancies for decades.
• SPECIALIZED FACILITY – The improvements will be newly constructed and will include a three-story, 70,000-square-foot hospital, offering 25 long-term acute care beds, as well as a rehabilitation unit with 28 beds. The high cost build-out and specific use of this facility create a sticky tenancy with a high degree of certainty for long-term use of the space.
• FAVORABLE RETURN – The average cap rate over the 40-year base term falls at an estimated 10.11% using an average CPI inflation of 2.50%, allowing for long-term positive leverage and cash flow. The estimated annual increases would bring the cap rate already over 7.00% by year nine, which is an unmatched return for prime Orlando real estate.
• HEDGE AGAINST INFLATION – With annual CPI rental increases of no less than 2% and no greater than 3%, investors can ensure an advantageous hedge against inflation and continuous growth of their invested capital.
• LOW BASIS – Based on historical average land sale values in the greater Orlando market and immediate vicinity, the land value alone for this 5.45-acre plot of land is estimated at approximately $10 million. With an in-place 40-year absolute NNN ground lease generating immediate cash flow, this offering presents investors with a remarkably low investment basis. This combination of a valuable land asset and stable, long-term income stream enhances the attractiveness of this opportunity. We’d encourage investors to verify this estimated valuation through their own due diligence.
• TOURISM DESTINATION – As a concentrated tourism corridor in Orlando, the subject property benefits from the intrinsic value of this highly sought-after market, driven by its popularity as one of the most visited areas in the country, with an average of 74M annual visitors.
• TAX FREE STATE – Florida is an income tax free state, allowing investors an opportunity for increased cash flow.
• GROWING MARKET – Orlando is one of the fastest growing markets by population growth, causing a continued appreciation of real estate and the need for healthcare. The already dense population of nearly 160k residents within a five-mile radius has grown 2.5% annually over the past 13 years.
• HOSPITAL ADJACENT – Situated adjacent to the 285-bed Orlando Health Dr. P. Phillips Hospital, the asset can greatly benefit from enhanced access to a robust referral network, while also establishing itself as a familiar presence within the community.
• SCARCE INVENTORY – There is a limited availability of useable land in Orlando, causing this to be a rare opportunity to acquire a sizable plot in this growing market.
• FAVORABLE DEMOGRAPHICS – Per the US Census Bureau, Orlando is home to an estimated 34.6k seniors, a number expected to grow exponentially. This demographic shift creates increasing demand for specialized healthcare services, particularly in Long-Term Acute Care, which is currently underserved. ScionHealth is addressing this demand with the development of this facility.