Cresco Labs Co-Founder Comments On First Tranche Of $25M Financing Of Psychedelics-Focused REIT

Healing Realty Trust (HRT), formerly known as Healing Commercial Real Estate Inc., has announced the successful closure of the first tranche (undisclosed amount) of its $25 million Series A funding round. This investment will facilitate the acquisition of three operating healthcare facilities across Texas, Ohio and Connecticut, totaling approximately 88,000 square feet. The move highlights HRT's commitment to expanding its clinic-focused real estate portfolio and supporting the growing demand for innovative and emerging psychedelic therapies.

Meeting The Demand For Healthcare Infrastructure

HRT is addressing a critical gap in the U.S. healthcare infrastructure, particularly in the behavioral health market, which is projected to reach $136.6 billion by 2032 - per Precedence Research. By acquiring triple net (NNN) leased healthcare-related assets, HRT is optimizing properties for traditional healthcare practices and advancing innovative treatments such as psychedelic-assisted therapies.

Joe Caltabiano, CEO of HRT - and also the co-founder of cannabis giant Cresco Labs CRLBF, emphasized the significance of this investment. "We are thrilled by the passionate investor support and confidence in our mission to revolutionize the conventional real estate investment space. Wellness properties have been historically overlooked by healthcare-focused REITs despite being the fastest-growing area of the wellness economy," he said.

Strategic Acquisitions And Innovative Approaches

The initial investment will fund the acquisition of three operating healthcare facilities for approximately $8.1 million, with an average cap rate of 10.97%. These properties 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 Davita Dialysis-anchored medical and office building in Connecticut. These acquisitions mark a significant step in HRT's strategy to build a robust network of facilities that cater to both traditional and cutting-edge healthcare services.

HRT leverages its exclusive relationship with HealingMaps, a data provider that connects patients with practitioners in multidisciplinary health spaces, to source properties in high-demand regions using proprietary, real-time insights. With a growing pipeline of over 700,000 square feet of healthcare real estate nationwide, HRT continues to identify high-quality properties, including medical offices, dialysis centers, mental health and ketamine clinics, rehabilitation centers and alcohol and drug treatment facilities.

Vision For The Future

Commenting on the news, Caltabiano expressed his enthusiasm for the future. "Our ability to successfully secure funding in such a unique and challenging environment is a testament to the dedication and passion of our team. It was made possible by leveraging the invaluable wisdom held by every member across countless strategic sectors, grounded in our shared commitment to making a positive difference," he said.

Hunton Andrews Kurth LLP acted as legal advisor to HRT, while Venable LLP served as Maryland counsel. As HRT continues to expand its footprint in the healthcare real estate sector, it is poised to play a critical role in the evolution of healthcare delivery, particularly in the realm of emerging psychedelic therapies.

Cover image: healingrt.com

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.