The Genesys Athletic Club is a testament to Granger Group’s commitment to partnering. Genesys Hospital began construction of the facility in 1995, then halted the project three months later after their bond rating was downgraded. Granger Group revived the project five years later after Granger agreed to partner with the hospital in the ownership of the facility and obtained off-balance sheet financing that would not downgrade their bonds.
A testament to Granger Group’s commitment to partnering, the Genesys MedSports Complex is a 300,000-square-foot medical wellness center, on the grounds of the Genesys Health Park campus, located in Grand Blanc, Michigan.
Genesys Hospital began construction on this wellness center in 1995, with plans to begin construction of a new acute care hospital within one year. However, only 3 months into the construction of the wellness center, the hospital experienced a downgrade in its bond rating. This forced the hospital to stop the wellness center construction to avoid putting the new acute care hospital in jeopardy.
Granger Group approached the hospital five years later with a solution to revive the project. Partnering with the hospital in the ownership of the facility, Granger Group obtained the off-balance-sheet financing that would protect the hospital’s bond capacity. Granger Group then restructured the transaction, paying the hospital $3.75 million in cash for their real estate and foundation investment and granting them 50% ownership in the project.
The Granger Group's ability to model off balance sheet financing while still providing the benefits of ownership allowed this project to become a reality.Dave J. Caudle, Genesys Ambulatory Health Services / Vice President
The $25.75 million, multifaceted health and fitness center was completed and opened on time in October 2001, saving over $500,000 in construction costs. This partnership allowed the hospital to transform an eyesore into a completed and successful revenue-producing real estate investment, and provided the surrounding community with a world-class setting for those taking the next steps to a healthier life.