Non Profit Leasing Solutions

Non Profit Healthcare organizations are today faced with capital constraints that have forced hard choices. These organizations have increasingly asked themselves “Has use of our capital in owned real estate been the highest and best use of these funds towards our charitable or public mission?” All too often, the answer is “No”. We are here to change that.

About Us

NHREFCO (the National Healthcare, Research, and Education Finance Corporation) is a specially formed 501 (c)(3) organization whose charitable purpose allows it to build or purchase real estate anywhere in the US to reduce the burdens of real estate occupancy costs for eligible not for profit healthcare related projects.

NHREFCO offers a unique conduit leasing solution providing benefits far superior to traditional financing methods available to healthcare project developers and not for profit healthcare organizations. The use of 501 (c) (3) Conduit” leases has emerged as the modern vehicle of choice for the real estate needs of many not-for-profit Healthcare organizations. Conduits are specially-formed 501 (c) (3) organizations whose charitable purpose under their IRS charter is reducing the cost of real estate occupancy for “supported” not for profit healthcare organizations.

Under the NHREFCO lease arrangement, the healthcare lessee receives an annual property rental rate equal to the principal and interest on NHREFCO’s long-term, tax-exempt debt, and the right to purchase the property at any time at a “wasting asset” fair market value that declines over time. These features provide the lessee organization with the effective benefits of ownership without impact to their cash position or debt ratings.

NHREFCO represents a far more attractive option than the traditional market of third-party landlords (Healthcare REITs, developers and traditional investors) whose profit motives and property control demands are in direct conflict with the goals of the healthcare organization. Clearly; this market of players is motivated by the prospect of generating strong investment yields through the imposition of market-rate lease terms including annual rent escalations while holding control over long-term residual value of these properties, which are often located in a Healthcare campus setting.

NHREFCO was formed in 2000, and has completed Leasing transactions for many prominent Healthcare organizations. The NHREFCO Board of Directors features prominent members of the Healthcare and public finance communities, and serve without compensation. NHREFCO also retains no paid staff in order to keep administrative costs low.

The Pereira Company serves as the exclusive advisor to NHREFCO in due diligence evaluation, selection and transaction process oversight for lease transactions executed by NHREFCO.

MEET OUR PEOPLE

Just a few of the many amazing people working behind the scenes to bring you industry leading real estate solutions

Randall PereiraPresident (The Pereira Company)

Randy Pereira is widely recognized both in the U.S. and internationally as a thought leader in structured finance. He serves as Advisor to many Fortune 100 corporations as well as States and foreign governments, who rely on him to help navigate complex capital structure, tax and accounting issues associated with highly-structured transactions.

He is a sought-after speaker for Finance industry events and is a published author, including recent articles in the London Journal of Corporate Real Estate and the Real Estate Finance Journal.

He serves as guest lecturer for the Arizona State University Masters of Real Estate program and is accredited by several State Bar associations to conduct continuing education courses for attorneys in finance-related topics.

Monty HumbleChairman of the Board (NHREFCO)

Mr. Humble’s connection with NHREFCO goes back to the year 2000 when as a partner with Vinson & Elkins LLP in the Public Finance Group he played a key role in developing the NHREFCO financing structure and the original formation of NHREFCO.

While at Vinson & Elkins, Mr. Humble specialized in financings for tax exempt organizations, particularly teaching hospitals. He also served as the President of the National Association of Bond Lawyers, a professional organization dedicated to improving the integrity of the municipal capital markets.

Mr. Humble also serves as an Adjunct Professor of Law at the University of Texas School of Law where he originally obtained his law degree. He currently resides in Austin, Texas with his family.

George RodriguezNHREFCO Legal Counsel (Bracewell LLP)

George has been involved with NHREFCO since 2005. His practice focuses on public debt offerings and business transactions involving the healthcare industry, single- and multi-family housing and Texas state agencies.

He serves as bond counsel, company counsel, underwriters’ counsel and trustee’s counsel in connection with public offerings of tax-exempt bonds in conduit financings for the benefit of nonprofit hospitals, healthcare organizations, financings by housing finance corporations, and Texas state agencies.

George has also advised on federal income tax matters with respect to tax-exempt bonds, corporate and securities laws, interest rate swaps, and fiduciary obligations of indenture trustees.

How We Assist Non Profit Organizations and Project Developers

Just a few of the many benefits we are able to provide Non Profit Organizations

Lower Occupancy Costs
Receive lower occupancy costs than can be delivered by traditional landlords through the use of tax exempt project financing.

No Impact On Cash Or Debt Capacity
Preserve your organization’s cash and debt capacity for activities that support your core mission, not real estate.

Exemption From Property Taxes
Take advantage of exemptions from property taxes in virtually all jurisdictions.

Ability To Terminate Lease At Any Time
Enjoy the effective benefits of ownership without being locked into a long term obligation.

Purchase Or Assign Purchase Rights To Anyone, Anytime
Maintain the ability to purchase property or assign purchase rights to a third party at any time during the lease for a declining price.