The Purpose of HealFi
HealFi Real Estate was created to serve the substance use disorder (SUD) treatment industry. Any inpatient, outpatient, sober living and/or psychiatric hospital operator that own their real estate or needs a partner to purchase a facility can partner with HealFi Real Estate to unlock the precious capital locked in their real estate assets. With the addiction epidemic being the primary cause of accidental deaths (in 2016 more deaths than car crashes) treatment operators need access to capital for growth to serve the approximately 30,000,000 million people suffering from SUDs; Currently, the SUD treatment industry’s capacity is approximately 2,800,000 a year. Of the 2,800,000 addicts that have gone through treatment programs, 5-8% are in recovery a year later and 10-15% report improved quality of life.
Stigmatization occurs on the micro level (i.e. an addict to their family and friends; an addict stuck in the legal systems, etc.) and on the macro level (i.e. SUD treatment facilities to their vendors, SUD treatment operator to their banks, etc.). This has has created a significant funding gap for SUD treatment operators. Healfi Real Estate’s mandate is to alleviate this funding gap by enabling treatment operators access to the capital tied up in their real estate assets by giving them 100% of the value of their real estate and the ability to maintain operational control over their assets. This is achieved through three types of partnership/transactions: sale-leaseback of operator owned assets, build-to-suit, purchase/lease agreement. On a case-by-case basis, 1st and 2nd lien mortgage debt against their real estate is available. HealFi recognizes the need for operators to maintain full operational control over their facilities and structures the leases to achieve this goal. In many instances a repurchase option is embedded in the purchase and sale agreement if desired by the treatment operator.
HealFi Real Estate two primary goals are: to bring desperately needed capital into the substance use disorder treatment industry and to achieve a reasonable rate of return for its investors. We beleive investment and alleviating suffering can go hand in hand. HealFi’s principals have direct experience with recovery/addiction and understand the complexity that SUD treatment operators face.