24 Bed- Residential Treatment Center
– Subject property has 2 separate 12 bed facilities that are open 24/7, providing inpatient residential services for mental health issues and eating disorders for adults (18+).
– Sticky tenant- Licensing and zoning for inpatient behavioral health facilities is nuanced, paired with extreme demand for mental health services, making this investment an attractive alternative to other STNL medical or retail available.
– This center offers residential treatment for those in need of a higher level of care. Conveniently located to support those in the greater Kansas City area, and close to the Kansas City (MCI) Airport to accommodate patients and families coming from out of state.
2019 Construction STNL Medical Property
– New 10-Year Lease Signed in 2022 with limited landlord responsibilities
– 2% Annual Increases
– $27.5 rent/ ft with 2019 construction is below market for STNL Medical nationwide
– The tenant has two five-year options to renew at the expiration of the 10-Year initial term
Discovery Behavioral Health- Corporate Guaranty (100+ Locations)
– Discovery has 100+ locations from California to New England, providing residential (RTC), partial hospitalization (PHP), intensive outpatient (IOP), and Detox services for substance abuse, mental health, and eating disorders.
– SAMSHA in 2022 reported that 1 in 4 adults have a mental illness, or 48.7 million people
– Behavioral Health market size was valued at $83.78 Billion in 2023 (Fortune Business)
– Discovery Behavioral Health services are preferred providers with most major insurance companies.
Kansas City- Top Midwest Growth Market
– 115,000+ Population in a 5 Mile Radius
– $150,000+ Average Household Income in 3 Mile Radius
– 20 Minutes SW of downtown Kansas City and 30 Minutes SW of Arrowhead Stadium, home to the Kansas City Chiefs
– Kansas City MSA has 2.3 million people and boasts U.S. News and World Report’s #1 housing market as of June 2024 based on housing demand, supply, and financial health.
