Triple Net Or Modified Lease, Which Is Right For You?
healthcare real estate financing,
sale leaseback financing,
triple net lease,
Choose Your Lease Fit
Buying a healthcare business? Need to free up capital that’s tied up in real estate? Whether you own one property or hundreds across the US, our team can purchase your property outright and immediately lease it back to your organization under long-term favorable terms. Our team understands your world better than anyone else in the industry. A Triple Net or Modified sale-leaseback can be the solution for your organization.
What can you expect from both options?
Term: Initial term of seven years with two renewal options of five years each.
Annual Rent Escalator: Annual rent increases two percent (2%) over the monthly rent for the preceding lease year.
Triple Net Lease (NNN)
Best for organizations who prefer to have autonomy with properties when it comes to:
Lessee is responsible for utilities, maintenance and repairs, and property insurance on the home.
Lessee must maintain general and professional liability insurance with respect to the services provided in the home.
Lessor is not responsible for any operating or capital expenses.
Modified Lease (MOD)
Best for organizations who prefer a lease similar to the general rental market and want to keep most property expenses covered under the lease.
Lessee is responsible for utilities and routine maintenance and repairs on the home.
Lessor is responsible for property taxes, property insurance, and reimbursing Lessee for repairs to the structural components* of the home that exceeds $500.00 and is not due to the negligence of Lessee or the residents living in the home.
* Covered structural components include plumbing, electrical, HVAC and roof systems.
At Scioto, we understand your world better than anyone else in the industry. Whether you are expanding into new territory, entering a new market, or acquiring another provider, we are here to help. Contact us today to discuss how we can help you do more.