ZINNIA HEALTH PORTFOLIO

INVESTMENT HIGHLIGHTS

• LONG-TERM LEASE – The portfolio features fresh 15-year leases with two, five-year renewal options which ensure a long-term stream of cash flow for prospective investors.
• ABSOLUTE TRIPLE NET LEASE – Each property in the portfolio is leased on an absolute triple net basis with Zinnia Health directly assuming all responsibilities at each property thus ensuring zero landlord obligations and no operating or capital expense risk.
• 3% ANNUAL ESCALATOR – The portfolio leases include attractive 3% annual escalators which ensures investors have increasing cash flow over the course of the lease term and ultimately serves as a fantastic hedge against inflation.
• MAJOR METRO LOCATION – The portfolio is strategically located in a major metro. The Anchorage portfolio features a five-mile population of nearly 140k people.
• FAVORABLE INCOME PROFILE – Within a five-mile radius of the Anchorage portfolio, the average household income is $91k.
• HIGH-CALIBER OPERATOR – Zinnia Health currently operates in 10 inpatient programs and 10 outpatient programs in 6 states across the United States. Zinnia Health will be expanding into Alaska with this portfolio and after opening will officially be operating in 7 states.
• NEW REDEVELOPMENTS – The portfolio is comprised of new redevelopment which provides investors the opportunity to acquire recently renovated facilities with the Anchorage portfolio having underwent $3.4MM in improvements. 5000 Taku Dr will be open as of March 15tth 2025 and 4950 Taku Dr and 101 Bunnell St will open in Q3 2025.
• GROWING INDUSTRY – The U.S. substance abuse treatment market size was valued at $3.2B in 2023 and is estimated to reach around $9.5 billion by 2034, growing at a compound annual growth rate of 10.25% from 2024 – 2034. The U.S. behavioral health market size was valued at $90B in 2023 and is estimated to reach around $141.2B by 2032, growing at a compound annual growth rate of 5.2% from 2024 – 2032.
• IMMEDIATE SCALE – The offering provides investors with the opportunity to achieve immediate scale through the acquisition of three properties totaling approximately 43,000 square feet.