Development / Behavioral Health

Behavioral Health

Developing addiction treatment facilities in response to one of the most urgent and underserved needs in American communities.

Facilities

Open & developing

739

Treatment Beds

Detox & inpatient

Currently Open

Accepting patients

States

IA · IN · MN · NC

The Need

Why behavioral health real estate matters

The demand for addiction treatment far outpaces available capacity — and has for decades. The data below reflects the scale of the opportunity, and our obligation to act.

1 in 3 Adults Affected

Reported a substance use disorder or mental illness in the past year. Over 88 million Americans.

Roughly 1 in 3 adults reports substance use disorder or mental illness. Most receive no care.

The Treatment Gap

Of the 54.2 million who needed treatment in 2023, only 7.6% received specialty care.

Needed treatment 54.2M

Received specialty care 4.1M

92.4% went without treatment. The treatment gap is one of the largest unmet needs in American healthcare.

Overdose Deaths, 2000–2023

Total U.S. drug overdose deaths, CDC data. Deaths have increased every decade.

108K in 2023

Source: CDC, National Center for Health Statistics

Our Approach

Real estate as a response to a public health crisis

Nelson entered the behavioral health space with the same discipline we apply to every asset class: identify a genuine need, find the right market, and execute with precision. Our strategy is to acquire and convert existing assets into addiction treatment centers — minimizing entitlement risk and getting facilities operational faster than ground-up development allows.

We target markets defined by high unmet demand, strong insurance reimbursement rates, and favorable Medicaid environments. Our current markets — Iowa, Minnesota, Indiana, and North Carolina — were each selected through careful analysis of treatment gaps, regulatory conditions, and long-term operational viability.

Nelson owns both the real estate and the operating business. Programs run on a percentage-of-revenue model, and we partner with reputable third-party management companies who are experts in running behavioral health facilities — bringing deep experience in licensing, contracting, and regulatory compliance.

Division Director

Division Leadership

Brian Schall

Director of Development · Behavioral Health

Brian has led Nelson's behavioral health division since 2022, overseeing site acquisition, operator partnerships, and development strategy across the portfolio. Prior to Nelson, he held roles at Berkshire Hathaway Energy and PRO Management Consulting. A graduate of the University of Iowa Tippie College of Business with a Finance Certificate of Entrepreneurship, Brian brings a rigorous, data-driven approach to identifying markets where Nelson can make a meaningful impact — and a strong return.

Read his Substack →

Operating Partners

The operators behind the programs

Ascension Recovery Services

Addiction Treatment Operations

A recognized national leader in developing and managing substance use disorder treatment centers. Founded in 2016, Ascension has built 70 programs across 30 states, serving thousands of patients.

Programs

States

2016

Founded

Visit Website

Arista Recovery

Addiction Treatment & Mental Health Operations

A Midwest behavioral health operator with 40 years of healthcare services experience, focused on evidence-based addiction treatment and mental health care. Arista operates residential and outpatient facilities anchored by a 38-acre inpatient campus near Kansas City, Kansas.

Facilities

States

2020

Founded

Visit Website

Project Locations

10 facilities across 4 states

Open

Coming Soon

Investment Opportunities

Invest in behavioral health real estate

We develop and own the real estate — our operating partners run the programs. Over 27 years and $1B+ in completed projects, Nelson has built lasting relationships with the partners and investors who work with us.

$1B+

Projects Completed

27 yrs

Track Record

739

Beds Under Development

Active Markets

🔒

Accredited investors only. Contact our team for fund structure details, minimum investment, and current offering materials.

From the Director