The transition includes a full workforce reduction, new external management contracts, and multimillion-dollar fees.

June 17, 2025

VineBrook Hands Off Property Operations to Evergreen

VineBrook Homes Trust, Inc. is making a decisive move. As of June 10, 2025, the company entered a series of agreements to hand off day-to-day property operations to third-party partners. The goal: externalize the management of the VineBrook Portfolio by the end of the year.

At the center of this shift is a new relationship with Evergreen Residential Management, LLC. Going forward, Evergreen will take on full responsibility for leasing, maintenance, rent collection, and overall property management. Once the transition wraps, Evergreen will be managing the entire VineBrook Portfolio.

The financial terms are straightforward. Evergreen earns a percentage of collected rents, plus fixed fees for shared services, repairs, and leasing commissions. The structure also includes performance-related payouts and property-specific charges. These agreements run for seven years with automatic one-year renewals, but either side can opt out with the right amount of notice—and in some cases, additional fees.

This transition doesn’t stop at property management. VineBrook also brought in Evergreen Asset Management to oversee asset-level strategy and accounting, and Evergreen Development Services to support acquisitions. Each entity is compensated through a mix of:

• Recurring management and asset-based fees


• Reimbursement of out-of-pocket operating expenses


• Incentive-driven payouts tied to acquisition performance

If acquisition targets aren’t met, performance fees are triggered based on predefined formulas.

Restructuring to Support the Shift

To align its operations with the new model, VineBrook is reducing its full-time workforce—completely. All 500 employees will exit by the end of 2025. The company expects to spend between $2.8 and $3.1 million on severance and one-time termination benefits. Most of that will hit the books in Q4.

There’s also a $5.7 million non-cash impairment tied to internal software projects that will no longer be used under the new management structure. The company expects these charges to be fully accounted for this fiscal year.

Leadership changes are also underway. On June 10, VineBrook terminated two senior executives, Dana Sprong and Ryan McGarry. Both will receive severance as previously outlined in earlier agreements. Mr. Sprong is also expected to step down from the company’s board as part of the separation process.

Incentives and Governance Built In

Each contract is built to support execution. The company committed to an initial $3.5 million in milestone-based payments to Evergreen and agreed to issue $5 million worth of Class C OP units when the portfolio transition hits completion or by year-end—whichever comes first.

Termination clauses are clearly defined, with exit fees set based on the stage of the agreement and the volume of assets involved. Both sides have mutual indemnification rights, along with performance obligations and service standards that are typical for externalized operating models.

VineBrook will continue to run the portfolio until the transition wraps later this year. The company is shifting how it operates, but the goal is unchanged: maintain continuity while putting long-term operational responsibilities in the hands of a dedicated manager. This structure gives the company room to stay focused on its broader investment strategy while aligning operating execution with a third-party platform built for scale.