Case Study | Philadelphia, PA (2019)
Sale / Leaseback
16 properties
10 year lease
plus renewal options
Overview
Nestidd allowed a large care organization to unlock capital within their portfolio of owned homes. By entering into a sale / leaseback transaction, consisting of selling the homes to Nestidd and executing long-term leases, they were able to redistribute those funds to better operate their care business.
Challenge
Access to Capital
A Philadelphia-area care organization owned a portfolio of homes and grew tired of dealing with large, capital expenditures on top of managing the residents’ care. This organization wanted to scale and expand their business further by taking on new client referrals, but lacked the access to capital required to purchase more homes.
Solution
Unlock Capital ; Retain Control
Nestidd and the care organization executed a sale / leaseback, in which Nestidd agreed to purchase the real estate for a fair market price and lease it back to the care organization on a long-term basis. This allowed the care organization to ensure stability for the residents under their care, as well as unlocking capital to scale the care side of their business.