Founded in 1975, the client, a Colorado-based nonprofit, began as a small but passionate community health center focused on counseling, emergency support, and education. Over the decades, they evolved into a leader in mental health and recovery services. By the 1990s, rapid expansion brought new locations and broadened their reach and today, they offer a powerful range of programs including addiction treatment, housing support, and cutting-edge research initiatives, transforming lives and strengthening communities across Colorado.

The Situation: In 2020, the health center made a bold investment by acquiring a 7.3 acre property in the Denver metro area for $7 million, with plans to build a transformative crisis and acute care facility. The $38.4 million project is already well underway, backed by $23.5 million in secured grants (including $4.1 million specifically set aside for the new site) and with annual revenues exceeding $82 million, the nonprofit was well-positioned to fund remaining costs through its operations. However, despite their strong financial position, traditional lenders were hesitant to lend due to the health center's nonprofit status.

The Solution: Leveraging their owner-occupied commercial real estate, Lili Tafilaj, Business Development Officer at Flatbay Capital, structured a $1MM CRE line of credit with an accordion feature to increase the credit facility up to $5.5MM. This solution enables the health center to access the equity in their properties without selling assets, ensuring they can complete construction and further their mission of expanding mental health services and community impact.

“We were able to construct a credit facility that will benefit the client long-term, thanks to our adaptable financing solutions and readiness to collaborate with them,” Lili says.