Established Regional Operator: The property is operated by Precision Spine Care, which has eight locations across Texas and Georgia and specializes in interventional pain management services, reflecting its operational scale and established market presence.
Long-Term Lease Security: Both tenant leases have more than 10 years of remaining term, providing durable and predictable cash flow visibility through the next decade.
NNN Lease Structure: The leases are structured as triple-net (NNN), minimizing landlord responsibilities and reducing exposure to operating expense volatility.
Contractual 3% Annual Rent Increases: Each lease features 3% annual rental escalations, delivering consistent year-over-year cash flow growth and serving as a strong hedge against inflation.
Growing Pain Management Sector: The U.S. pain management market is projected to expand from $27.9 billion in 2024 to $38.5 billion by 2033 (3.7% CAGR), supporting long-term demand for the tenant’s services and reinforcing the defensive nature of the healthcare asset class.
Significant Build-to-Suit Investment: Tenant invested approximately $1.9M, reflecting substantial capital commitment and long-term dedication to the site.
Tax-Advantaged State – Texas: Texas is one of nine states with no personal income tax, creating a favorable tax environment for residents and business operators. According to U.S. Census data, Texas led the nation in net domestic migration in 2024, underscoring strong demographic momentum and long-term economic growth.
Accelerated Depreciation Potential: Given the significant capital invested in the facility buildout, investors may benefit from enhanced depreciation through a cost segregation study, potentially improving after-tax returns. Investors should consult their CPA to confirm applicability.