Lease/Leaseback
Modtech can assist in securing Lease/leaseback funding which provides a number of benefits:
- Projects can be 100% financed—no up front costs
- Select organizations can issue tax exempt financing resulting in a lower finance rate
- Tax exempt conduit is used to set up hold on property
- Construction begins sooner as it is not necessary to wait for bond issuance
- Flexible repayment terms
- Can utilize matching state funds
- Variable length of financing—up to 30 years
- District can buyout lease and terminate on thirty-day notice
- Day-to-day project management headache reduced
- Single point of accountability for the entire project
- Schedule and contracting efficiencies
- No change orders unless initiated by client
- Assistance with entitlements and regulatory requirements
- Can be used with permanent or relocatable facilities
- Additions can also be funded using lease-leaseback
- Municipalities can include soft costs such as architectural and engineering fees into financing