Scioto facilitated a win-win partnership
Service Provider A (SPA) is a well-established provider of residential services and lifestyle guidance for individuals with mental illness in Georgia. SPA has been at 100% occupancy for years and faced a growing demand for its services.
SPA sought to execute a sale lease-back to generate working capital to expand their platform. Unfortunately, they were dealing with an unsophisticated buyer who didn’t understand the business model and frustrations emerged soon after closing.
Enter Scioto who was able to take out the buyer, and restructure the lease to include additional funds necessary to upgrade the facility while preserving the working capital needed to grow their business.
To achieve their long-term goals and keep up with the increasing demand for their services, SPA sought a real estate partner who understood their needs and could help them expand.
Scioto Properties acquired the property from both SPA and the previous real estate owner and assumed the existing lease with SPA.
A 25-year, NNN lease term was negotiated, with an annual 2% escalation with 10 five-year renewal options. In addition, SPA was given a significant amount of working capital.
Benefits:
Testimonial: “Our recent work with Scioto Properties to acquire our properties and negotiate an extensive long-term NNN lease was both professionally and personally reassuring. Scioto, a sophisticated buyer acquiring our properties, afforded us the opportunity to pursue our long term goals of continuing to develop and provide much needed services in the mental health field. We look forward to a long and profitable partnership with Scioto Properties.”
– Owner SPA
Scioto offers construction and development services that can be tailored specifically to fit the
accessibility design needs and requirements of providers.
A one-stop capital solution to design-build
Competitive pricing and terms
Management of the project from start to finish
Scioto secured an A-class land site at an attractive price
Scioto delivered a first-class facility to the customer on-time and within budget
Scioto managed the whole process from land selection to certificate of occupancy
The customer did not have to come out of pocket for any of the development costs and the lease started upon completion
Scioto saved 10% from budget through proactive construction management and keeping change orders to a minimum
Delivery was on-time in 2020, despite COVID disruptions
Whether you’re expanding, reimagining care, or looking to unlock capital—Scioto is ready to partner with you. We support your vision.
