Portfolio Project

Ascension Seton

A lease restructuring with lasting results

Ascension Seton, a non-profit healthcare system, sought ownership of the 4-story, 156,000-square-foot facility, which it uses as its Texas headquarters, but did not want to allocate the capital for administration space. Its existing landlord did not align with Seton’s charitable mission with a primary focus on stakeholder returns.

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

Reach us directly at 404-233-9000 and info@centurionmail.org, or learn more about how we can help on our Contact page.