Healing Realty Trust To Put $25M Into Behavioral Health, Psychedelic Real Estate

The Jupiter, Florida-based real estate investment company will use the funds to acquire health care facilities in Texas, Ohio and Connecticut — one facility each. Healing Realty Trust is focused on developing real estate for clinics that house novel behavioral health treatments, especially psychedelic-assisted therapies. The organization’s focus also includes clinics for providers that offer physical health care as well.

“Wellness properties have been historically overlooked by healthcare-focused REITs despite being the fastest growing area of the wellness economy,” Joe Caltabiano, CEO of Healing Realty Trust, said in a news release. “As a first mover in this sector, we have cornered an untapped, high-growth opportunity as Americans become more interested in innovative treatments and demand for new medications increases.”

The three facilities were acquired for $8.1 million and have an average capitalization rate of about 11%. They include a 36,000-square-foot outpatient center in Texas, a 37,000-square-foot medical office complex in Ohio and a 15,000-square-foot medical and office building in Connecticut that is anchored by a Davita Inc. (NYSE: DVA) dialysis clinic.

Healing Realty Trust’s pipeline encompasses over 700,000 square feet of health care office space. Its target spaces include medical offices, dialysis clinics, mental health offices, ketamine clinics and addiction treatment facilities. The company was once known as Healing Commercial Real Estate Inc.

Psychedelic and psychedelic-like treatments have proliferated across the U.S. to middling success at best. A handful of the most developed companies have faced serious stumbles, and in some cases, as with Ketamine Wellness Centers, ceased to exist as it was once did. Most of its assets were acquired by a telehealth company and it has been forced to stop trading public securities.

Experts in the field have previously told Behavioral Health Business that these types of treatment are not viable enough of a product offerings to sustain business as their primary focus.

For the most part, psychedelics are shut out of the marketplace because most health plans won’t cover them because the Food and Drug Administration has not cleared them to treat behavioral health issues. The future for the use of these kinds of substances is less sure to get the FDA nod after and advisory committee made a nonbiding decision that did not approve an application for MDMA’s use to treat PTSD.

Source: Behavioral Health Business