Investors are looking to set up a REIT to buy properties for psychedelic therapy.


The cure that Cody Shandrow and Ty Zakovich hope to build a real estate empire isn’t yet legal in the US, but they’re discouraged from arguing about what they think is the future of healthcare real estate. I am not waiting.

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Science shows the benefits of MDMA in treating mental disorders.

Zakovich and Shandraw are co-founders of Healing REIT. Healing REIT is a real estate investment firm focused on buying and renovating clinical spaces for practitioners who want to dive into the world of MDMA psychotherapy. Their plan is to seek approval from the New York Stock Exchange to trade as a real estate investment trust by later this year.

Their bet is a bold one, especially since treatment with MDMA (the pure version of the drug commonly called ecstasy or Molly) is still illegal in the United States. Approval for use in the treatment of mental health conditions is underway through the Food and Drug Administration. has a list of clients who are ready to sign up to lease it.

“Everybody talks about drugs, but no one talks about where they get delivered,” Shandrow said. Bissnow During a recent interview.

Zakovich is also a principal at TGP Ventures, a California-based CRE asset management and debt firm, and Shandraw describes himself as “a series of entrepreneurs” investing in the medical psychedelic space through Ambria Capital and venture fund Phyto Partners. doing. The duo also includes Chief Operating Officer Daniel Carciro, a former National Hockey League professional and Stanley who has played for the Chicago Blackhawks and the New York Rangers, his two-time winner of his Cup. is a partner of

Since retiring at age 30, Carcillo has become an advocate for people with traumatic brain injuries and the use of psilocybin in treating brain injury symptoms. Carcillo specializes in treating TBI and other mental health disorders.He is also CEO of Wesana Health.

Shandraw said his Phyto fund gave Healing REIT $250,000 in funding earlier this year, and Zakovich said the company raised another $1 million in seed funding from outside investors this month.they said Bissnow They are in negotiations to purchase their first building, a clinic in Brooklyn, New York.

Shandraw said it has identified a pipeline of $47 million in property acquisitions across the country that will comprise Healing REIT’s initial portfolio. The buildings are mainly he 2K~5K SF existing one-story office buildings or condominiums.

Zakovich said Healing targets facilities within five miles of a U.S. Department of Veterans Affairs elite hospital. These hospitals, which include Palo Alto, Los Angeles and San Diego, California, Ann Arbor, Boston, Michigan, Northern Florida, and Southern Georgia, are already providing medical care. It exists to help veterans suffering from post-traumatic stress disorder.

“These are typically single buildings or single office condominiums that were previously already in medical use,” Shandrow says.

MDMA is psychedelic and is increasingly being studied and used to treat mental disorders as a more effective alternative to already approved treatments. , works by increasing the output of serotonin and dopamine, which can boost energy. The drug was legal in the United States until 1984, when the Drug Enforcement Administration declared it a Schedule 1 substance.

Along with MDMA, psilocybin, the active ingredient in what is commonly known as the “magic mushroom,” is undergoing final safety evaluation with the FDA and could get the green light for medical use by next year. The Intercept reported.

“One of the big reasons we’re looking at psychedelics is the failure of conventional treatments,” says Amy Morin, licensed psychotherapist, author, and editor-in-chief of Verywell Mind. increase. “People are making new connections with synapses in their brains, and when they emerge from their trip, they’re permanent.”

The use of psychedelics in medical therapy is already impacting the healthcare real estate market.

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Department of Veterans Affairs Medical Center, Ann Arbor, Michigan

The hallucinogen market is experiencing significant growth as more studies link better outcomes in treating depression, PTSD, and other mental disorders. According to Data Bridge Market Research, the global psychedelic market will reach $2.3 billion in 2021, with major players such as Janssen Pharmaceuticals, Pfizer, Verrrian, Celon Pharma and ATAI Life Sciences involved in developing his MDMA and other psychedelics. Involved. By 2029, that market is expected to balloon to $6.4 billion.

After the FDA approved a nasal spray version of ketamine for the treatment of depression and chronic pain in 2019, hundreds of clinics were set up for its distribution and administration. It estimates there are 500 to 750 ketamine clinics, reports Medscape.

These clinics are mostly family-run, and experts say patients can receive treatment sessions that typically last from 30 minutes to an hour. However, since FDA approval, many clinics have expanded into larger chains. Irwin Naturals has purchased 10 clinics in the US this year and Revivalist is expanding beyond the Tennessee border into North Carolina, Michigan and Washington DC, Mind Site News reported.

“The amount of capital injected is incredible,” Shandrow said.

The type of treatment room required for MDMA therapy differs from the clinics currently used for ketamine. You need to be in a room large enough to talk through the experience with the patient.

“Basically, you want a space that really calms you down. You want something that looks more like a living room than a doctor’s office,” she said.

Many clinical spaces are available that include ketamine, but few are designed to administer MDMA. We stated that we would provide the room with a private bathroom.

“It became clear that the existing infrastructure that is currently in place for ketamine treatment does not work for MDMA treatment,” he said. “Because this is empirical medicine, this medicine has to be done in brick-and-mortar clinics.

Working with law firm Greenberg Traurig, Shandraw said Healing REIT has filed a prospectus with the Securities and Exchange Commission and plans to go public by September. The company already has a list of medical practices ready to sign triple-net leases on Healing REIT-owned facilities, Zakovich said. Bissnow.

“We work with chiropractors [and] Ketamine Medical Company,” Zakovich said. “Every practice we buy property from is an existing profitable practice that we want to add MDMA therapy to.”

The duo declined to identify potential tenants. , said it could easily be used for other treatments, including other more traditional clinics.

“By the time this company goes public, we hope to go from $100 million to $150 million in market cap, and $500 million in the next 36 months,” Shandraw said.



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