SAB’s sale-leaseback (“SLB”) capital markets team closed a 5-property medical office portfolio across Michigan and Indiana. This regionally leading, sponsored-provider of center-based autism therapy administers early-intervention, applied behavior analysis (“ABA”) treatment in 30+ centers across 4 states, serving over 750 learners, and plans to open 8-10 centers annually.
ABA is evidence-based therapy administered by Board Certified Behavioral Analysts (“BCBAs”) and Registered Behavioral Technicians (“RBTs”) to advance classroom-readiness for children diagnosed with Autism Spectrum Disorder (“ASD”).
Following a competitive bidding process, the SLB was placed with a Detroit-based family office with meaningful behavioral healthcare tenancies in their portfolio, at 95% of the asking price.
Proceeds from the SLB were used to (a) pay down high coupon debt, lowering the ABA provider’s cost of financing hundreds of basis points, and (b) unlock idle equity tied up in land for new center development + expansion in Nebraska, furthering this ABA provider’s market share.
For organizations with a mission to provide therapy & care, monetizing land & buildings in the SLB capital markets, unlike a mortgages or traditional debt, provides 100%-financing without personal recourse, loan covenants, or dilution that outside equity comes with. This provides funding for investment in operations that are tied to expanding care and furthering market vs sitting idle in land.
For more information on the execution of this sale leaseback, contact:
Bryan Huber | bhuber@sabcap.com | 646.809.8845
