Continuum of Care
Housing & Service Provider
Case Studies
Private/Medicaid Service Provider
​
Continuum of Care Housing Provider
​
Non-profit Asset Management Firm
​
Active Projects
Strategic Sales/Leaseback Reduces Expenses and Re-deploy Capital
A non-profit Continuum of Care Housing Provider, MRA, needed capital to expand into Gwinnett County, Georgia. After review of several options, MRA decided to list the property for sale in order to extract funds for the acquisition of additional housing.
MRA needed capital to build more units as enrollment soared. Nurture Capital stepped in and advised MRA to offer a sales-leaseback structure with specific terms instead of the original sales approach allowing them to retain needed housing units while undertaking the project of increasing inventory. Under the terms of the Agreement, we were able to secure new ownership, keep the current tax-exempted status, improve the property, and apply funds from closing to adding additional units. In fact, the strategy worked so well, that the sales price was around 15% higher than any previous offers. As a bonus, MRA kept property management responsibility which produced extra income per month.
The transaction included the following terms:
-
1-year guaranteed rents for all 30 units
-
Right to extend leases an additional Six (6) months
-
Move-out fees paid to Buyer at end of Lease Agreement.
​
Benefits to MRA:
-
Additional capital of $820K dollars for new housing.
-
Restructure debt services reducing payment on cross-collateralized properties.
-
Additional income for PM fees of $5000 per month.
-
Transfer of defer maintenance saving around $15K per month.