Seton tried unsuccessfully to identify a new landlord – one with a similar mission – to step in and acquire the facility in order to generate lease savings. Through trusted relationships, Seton discovered Centurion Foundation.
Centurion created a new leasing strategy that provided savings and established a structure granting Seton long-term control of the property. With Seton’s mission-driven goals in mind, Centurion crafted a new lease that met the operational, accounting classification, and ownership objectives that Seton desired.
The new lease terms resulted in:
- 10-year lease
- Annual rent savings in excess of $1.4 million
- Rental savings during the initial term in excess of $15 million
- Anticipated annual property tax exemption savings of an additional $1.4 million
- Favorable purchase option at the end of the initial 10-year term
“Our partnership with Centurion in the acquisition and leaseback of HQ has been a tremendous success. We’ve secured a significant annual cost savings over our previous for-profit arrangement, enabling us to increase the charity care provided to our local markets.”
Chief Financial Officer, Seton