Sourcing Capital For Growth
“They have been a great partner and even provided some of their folks that we needed for strategic planning. They helped make us aware of what we can do…”
This provider organization owned a number of homes and were having to play the role of landlord as well as care provider. They had a large amount of capital tied up in these homes and weren’t able to maximize the use of that money for their operations. This provider wanted to continue to grow and take part in acquisitions but were challenged with sourcing capital for this growth.
The Scioto Solution
After taking care of all the underwriting upfront and offering a variety of lease structures customized to meet the specific needs of this provider, Scioto completed a sale-leaseback transaction for several of the homes the organization owned.
The sale-leaseback allowed the organization to continue to utilize the homes while having the security of long-term leases with a stable landlord that works in the I/DD industry. The transaction also freed up the capital tied up in real estate and the provider obtained an infusion of capital available for operational growth.