Financial Projections · Both Entities · 10 Years

The numbers.
Fully disclosed.

Ten-year projections across the three-entity structure: NCGDI (nonprofit, Building 1 VA program), Carolina Growth Clinical Care, LLC (for-profit operator, Buildings 2–5), and Carolina Growth Holdings, LLC (property owner and landlord to both). Year 1 begins October 2026 with Building 1 operations.

Full Investor Offering →
Year 10 Gross Revenue
$7.2M
VA GPD + Trillium Tier 2 + Tier 3 combined at full stabilization
CGH Stabilized NOI
$425K
Lease income less mortgage and property costs · 1.5× preferred coverage
Income-Basis Asset Value
~$6.5M
Stabilized lease NOI ÷ 6.5% cap rate, before expansion or repositioning upside
R1 Preferred (10 Yrs)
$350K
10% on $350K, accrued from close and paid current from Year 3 · principal at capital event
R2 Preferred (Yrs 3–10)
$1.96M
7% on $3.5M · principal participation at refinancing or exit
Combined Operator Surplus (10-Yr)
$3.8M
NCGDI Building 1 reserves (non-distributable) + CGCC Buildings 2–5 pre-tax margin (taxable, distributable to owners)
Combined Summary
Operators — NCGDI + CGCC
CGH — For-Profit
Investor Returns
Distribution Waterfall
Combined Overview

Full Campus — Both Entities

MetricYr 1
2026		Yr 2
2027		Yr 3
2028		Yr 4
2029		Yr 5
2030		Yr 7
2032		Yr 10
2035		10-Yr Total
CAMPUS SCALE
Total Beds Operational1616 → 808080808080—
CAMPUS PROGRAM REVENUE (NCGDI B1 + CGCC B2–5)
VA GPD Per Diem (Bldg 1)$514K$748K$762K$778K$793K$825K$876K$7.8M
Trillium Tier 2 (from Yr 2)—$800K$1.90M$1.94M$1.98M$2.06M$2.18M$17.1M
Trillium Tier 3 (from Yr 2, 2028 base case)—$900K$3.15M$3.70M$3.77M$3.93M$4.17M$31.6M
Total Gross Revenue$514K$2.45M$5.81M$6.42M$6.54M$6.81M$7.23M$56.5M
COMBINED OPERATOR SURPLUS (~10% MARGIN, PRE-TAX)
Combined Operator Surplus (pre-tax)($92K)$150K$379K$440K$452K$479K$521K$3.8M
INVESTOR PREFERRED (CGH)
R1 Preferred Accrued/Paid (10%)$35K$35K$35K$35K$35K$35K$35K$350K
R2 Preferred Accrued/Paid (7%)—$161K$245K$245K$245K$245K$245K$2.12M
CGH PROPERTY ECONOMICS
Lease NOI / Coverage of Preferred$13K$85K$425K · 1.5×$425K · 1.5×$425K · 1.5×$425K · 1.5×$425K · 1.5×$3.5M
Nonprofit Financials

NCGDI — 10-Year Operating Model

NCGDI receives all government revenue and operates all programs. The surplus is NOT profit — it funds reserves, staffing, and mission expansion. NCGDI cannot distribute surplus to individuals.

Line ItemYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 1010-Yr
REVENUE
VA GPD Per Diem$514K$748K$762K$778K$793K$809K$825K$842K$859K$876K$7.8M
Tier 2 Trillium Clinical—$800K$1.90M$1.94M$1.98M$2.02M$2.06M$2.10M$2.14M$2.18M$17.1M
Tier 3 DHHS Per Diem—$900K$3.15M$3.70M$3.77M$3.85M$3.93M$4.01M$4.09M$4.17M$31.6M
TOTAL REVENUE$514K$2.45M$5.81M$6.42M$6.54M$6.68M$6.81M$6.95M$7.08M$7.23M$56.5M
EXPENSES (INCL. LEASE TO CGH · ~90% OF REVENUE, PER FILED GPD BUDGET MARGIN)
Program Operating Expenses$538K$2.16M$4.95M$5.50M$5.61M$5.73M$5.85M$5.97M$6.10M$6.22M$48.6M
Leases to CGH (Lease A: NCGDI B1 · Lease B: CGCC B2–5)$68K$140K$480K$480K$480K$480K$480K$480K$480K$480K$4.0M
TOTAL EXPENSES$606K$2.30M$5.43M$5.98M$6.09M$6.21M$6.33M$6.45M$6.58M$6.70M$52.7M
SURPLUS
Annual Operating Surplus($92K)$150K$379K$440K$452K$465K$479K$493K$506K$521K$3.8M
Operating Marginramp6.1%6.5%6.9%6.9%7.0%7.0%7.1%7.1%7.2%6.7%
For-Profit Entity

Carolina Growth Holdings — 10-Year Model

CGH owns the real estate and receives lease payments from NCGDI. The waterfall pays debt service first, then investor preferred returns, then management profit sharing, then Jay Powell / family trust common equity.

Line ItemYr 1Yr 2Yr 3Yr 4Yr 5Yr 6Yr 7Yr 8Yr 9Yr 1010-Yr
CGH REVENUE (LEASE FROM NCGDI)
Total Lease Income$68K$140K$480K$480K$480K$480K$480K$480K$480K$480K$4.05M
TIER 1 — DEBT SERVICE (PAID FIRST)
Existing Mortgage ($380K debt · $2,500/mo)$30K$30K$30K$30K$30K$30K$30K$30K$30K$30K$300K
Property Operating (taxes, insurance)$25K$25K$25K$25K$25K$25K$25K$25K$25K$25K$250K
Property NOI (Buildings 2–5 funded by Round 2 equity — no construction debt)$13K$85K$425K$425K$425K$425K$425K$425K$425K$425K$3.50M
TIER 2 — INVESTOR PREFERRED (PAID AFTER DEBT)
R1 — $350K @ 10% = $35K/yr (accrues Yr 1)$35K$35K$35K$35K$35K$35K$35K$35K$35K$35K$350K
R2 — $3.5M @ 7% = $245K/yr (partial Yr 2 as deployed)—$161K$245K$245K$245K$245K$245K$245K$245K$245K$1.96M
TIER 3 — MANAGEMENT PROFIT SHARING (20% OF DISTRIBUTABLE CF)
Distributable Cash After Preferred (ramp accrual cleared Yr 3)($22K)($111K)$12K$145K$145K$145K$145K$145K$145K$145K$0.9M
Management / common allocation per executed agreements and operating agreementIncludes Clinical Director Year 3 conversion option; documented at capital event

Note: CGH leases Building 1 to NCGDI (Lease A: $3,000/month + $300 per occupied bed) and Buildings 2–5 to Carolina Growth Clinical Care, LLC (Lease B: $3,000/month + $550 per occupied bed from each building’s delivery). At stabilization, combined CGH property NOI of ~$423K covers the $280K annual preferred obligation at ~1.5×, with ramp-period accrued preferred cleared as Lease B income comes online. Lease A is subject to independent fair-market-value documentation and NCGDI board approval with interested parties recused. Buildings 2–5 are funded by Round 2 equity; CGH carries no construction debt.

Investor Returns

What investors actually receive.

Preferred returns accrue from close and are paid current from Year 3, with ramp-period accrual cleared as lease income stabilizes. Principal is returned at a capital event (refinancing or sale) per the operating agreement, at which investors also participate in appreciation.

Three Ways You Make Money
① Preferred Return
10% (R1) / 7% (R2) accruing from close, paid current from Year 3 with ramp-period accrual cleared — funded by lease income under the master lease.
② Excess Cash Flow
Participation in CGH distributable cash above the preferred (~$145K/yr at stabilization), per the operating agreement waterfall.
③ Appreciation
Stabilized income-basis value of ~$6.5M at a 6.5% cap on in-place lease NOI, before lease growth, expansion, or repositioning upside. Investors participate at refinancing or exit.
Round 1 Investment
$25,000
$2,500 per year accrued from close
Annual preferred$2,500
10-yr distributions$25,000
Principal at capital event$25,000
Total return$50,000
Preferred ROIC100%
Round 1 Investment
$50,000
$5,000 per year accrued from close
Annual preferred$5,000
10-yr distributions$50,000
Principal at capital event$50,000
Total return$100,000
Preferred ROIC100%
Round 1 Investment
$100,000
$10,000 per year accrued from close
Annual preferred$10,000
10-yr distributions$100,000
Principal at capital event$100,000
Total return$200,000
Preferred ROIC100%
Round 2 Investment
$50,000
$3,500 per year from Year 3 (partial Year 2 as deployed)
Annual preferred$3,500
Yr 3–10 distributions$28,000
Principal at capital event$50,000
Total return$78,000
ROIC56%
Round 2 Investment
$250,000
$17,500 per year from Year 3 (partial Year 2 as deployed)
Annual preferred$17,500
Yr 3–10 distributions$140,000
Principal at capital event$250,000
Total return$390,000
ROIC56%
Round 2 Investment
$500,000
$35,000 per year from Year 3 (partial Year 2 as deployed)
Annual preferred$35,000
Yr 3–10 distributions$280,000
Principal at capital event$500,000
Total return$780,000
ROIC56%
Distribution Waterfall

Where every dollar goes — Year 3 Stabilized

At Year 3 stabilization the campus generates $5.81M in gross program revenue. Here is the complete distribution sequence from top to bottom.

Step 1 — Revenue
NCGDI Gross Program Revenue
VA GPD $762K + Trillium Tier 2 $1.90M + Tier 3 $3.15M
$5,812K
Year 3 Total
Step 2 — NCGDI Program Operating Expenses
Clinical Staffing, Operations, Reserves
Staffing-led cost base consistent with the filed GPD budget (~10% program margin)
($4,953K)
Paid by NCGDI
Step 3 — NCGDI Surplus
NCGDI Annual Operating Surplus
Funds program reserves, staffing expansion, and mission activities — not distributed
$379K
NCGDI retains
Step 4 — Lease Payment
NCGDI Pays CGH Lease
$3,000/mo base + $550 per occupied bed at Tier 3 activation (stepped from $300)
$480K
Flows to CGH
Step 5 — CGH Property Costs
Existing Mortgage + Property Operating
$30K mortgage ($380K debt) + $25K taxes and insurance · no construction debt
($55K)
Paid by CGH
Step 6 — Investor Preferred Returns
R1 $35K (10%) + R2 $245K (7%)
Paid current from Year 3, with ramp-period accrued preferred (~$133K) cleared from coverage cushion
$280K
To Investors
Step 7 — Distributable Cash
After Preferred — Management / Common
~$145K/yr at stabilization, allocated per the operating agreement and executed management agreements
$145K
1.5× coverage
Stabilized Asset Value
Income Basis at 6.5% Cap Rate
$425K lease NOI ÷ 6.5% ≈ $6.5M, before lease growth, expansion, or repositioning upside. Investors participate at capital event.
~$6.5M
Income Basis
Year 10 Asset Value

The asset value, on an honest basis.

Stabilized Income-Basis Asset Value (6.5% Cap Rate)
~$6.5M
$425K in-place lease NOI ÷ 6.5% Cap Rate · 80 beds · Winston-Salem, NC
$5.7M
Conservative (7.5% cap)
$4.23M
Total capitalization (debt + equity)
1.5×
Preferred coverage at stabilization
$425K
Stabilized lease NOI

Asset value methodology: CGH in-place lease NOI (lease income less mortgage and property costs) divided by market cap rate. This income-basis figure excludes potential upside from lease escalation, campus expansion, or repositioning, and from replacement-cost premiums for licensed behavioral health facilities. Both R1 and R2 investors participate in appreciation at refinancing or exit, in addition to preferred return distributions. Stepped lease terms subject to independent FMV documentation and NCGDI board approval.