Evergreen Behavioral Health
Evergreen Behavioral Health is a strategic venture focused on acquiring NNN properties leased to operators in the behavioral health sector focused on substance abuse and addiction treatment, mental health services, and special education. In Q42020 we acquired a 96-bed addiction treatment facility that is leased and operated under a 20-year absolute net lease to a national behavioral health operator called Landmark Recovery. The long-term lease structure provides attractive and predictable cashflow with the tenant completely responsible for all property expenses and maintenance including taxes and insurance. The lease features an annual 2.5% escalation of rental payments and is unconditionally guaranteed by the entire corporation, including Landmark’s principals and other locations.
Evergreen, together with its co-sponsor, Wellness Real Estate Partners (WREP), is focused on acquiring properties that are NNN leased to operators in the behavioral health and wellness sector including addiction treatment centers, special needs education facilities, and other mental health services. Behavioral health services are in high-demand and have proven to be resilient to fluctuations in the economy and have performed well despite the COVID-19 pandemic. This asset class is highly fragmented and presents an opportunity to acquire properties at a compelling basis with strong potential for appreciation. The Principals of Evergreen and WREP are seasoned institutional real estate professionals and have demonstrated a track record of structuring and acquiring these investments.