ZINNIA HEALTH PORTFOLIO

INVESTMENT HIGHLIGHTS

PROPERTY ADDRESSES: 3606 E Jefferson Blvd, South Bend, IN & 120 N State Market Rd, Pahokee, FL

PROPERTY HIGHLIGHTS

• SPECIAL USE FACILITY: Substance abuse and mental health rehabilitation centers are uniquely designed facilities that cater to a critical societal need, providing specialized environments and tailored infrastructure to support the intensive, personalized care required for effective treatment and recovery.
• ANNUAL RENTAL INCREASES: These assets includes 3% annual rental increases. Continuous increases are an integral part of an investment asset to hedge against inflation and compound growth of investment dollars.
• ADVANTAGEOUS RETURNS: Over the remaining 12-year+ base term, this opportunity will allow an investor to receive an average cap rate of 9.91% and rental income totaling 125% of the list price.
• PASSIVE INCOME: Investors have the opportunity to achieve completely passive income from the absolute NNN leases included with these assets. This creates a perfect opportunity for out-of-state investors, 1031 exchange buyers, and those seeking predictable, consistent income.

PAHOKEE, FL HIGHLIGHTS

• SOUTH FLORIDA: The Pahokee, FL location in south Florida sits as a hub among West Palm Beach, Miami, and Fort Myers. These major metros provides a vast potential patient base diverse economies and hold an international appeal.
• EXEMPLARY LOCATION: Lake Okeechobee in Pahokee, FL is a prime location for inpatient rehabilitation, utilizing its natural surroundings and calming environment to provide patients with the full rehabilitative process.
• INCOME TAX FREE STATE: Florida is one of the nine income-tax-free states, providing the opportunity for increased cash flow for investors.
• NEW HOUSING REDEVELOPMENT: The Everglades Townhomes is a 200 unit, affordable housing development that is nearing completion in Pahokee. One 60-unit project will include a daycare center and greenspace, while the 140-unit development will contribute a modern art theme and possible gated rental community.

SOUTH BEND, IN HIGHLIGHTS

• PROXIMITY TO MAJOR MARKETS: South Bend is strategically located near major cities like Chicago, Indianapolis, and Detroit. Its location along major transportation corridors enhances its attractiveness for businesses that require easy access to these markets.
• INVESTMENT FROM GLOBAL COMPANIES: The upcoming Amazon data center and GM-Samsung battery plant projects west of South Bend are catalyzing economic development, prompting plans for new infrastructure and commercial facilities, including a hotel, gas station, and travel center at State Road 2 and Larrison Boulevard. This development, part of the broader Indiana Enterprise Center industrial park initiative, is expected to generate significant employment and transform the area, with further support from planned state and county infrastructure enhancements.
• DOWNTOWN TRANSFORMATION: Downtown South Bend is poised for transformation with a $1 billion investment targeted at enhancing residential, retail, and dining. This comprehensive development, driven by Mayor James Mueller’s vision and in collaboration with Urban Design Associates, aims to revitalize the urban landscape and boost employment.
• NEW HOUSING GROWTH: A transformative $61.5 million housing project is underway in downtown South Bend along the St. Joseph River, featuring 291 new apartments ranging from studios to three-bedroom units. The development aims to meet the city’s rising housing demands, fueled by regional economic growth, including the new Samsung and Amazon facilities. This project, financed through a tax increment finance (TIF) bond, will replace the southernmost Crowe LLP building, enhancing downtown vibrancy and capitalizing on the employment.

TENANT HIGHLIGHTS

• NATIONAL OPERATOR: Zinnia Health is a national substance abuse and mental health rehabilitation provider offering various levels of care to create a custom solution for patients. With over a decade of operations, their proven track record shows the likeliness of their long-term success. Zinnia currently operates 10 inpatient and 10 outpatient programs in six states with plans to expand into a seventh state.
• GROWING REHAB MARKET: The US substance abuse treatment market has grown at a CAGR of 3.3% over the past 5 years, reaching an estimated $5.3B in 2024. The increased awareness, tech advancements, and reduced stigma shows signs of continued growth well into the future.