SKETCH - Financing the Future Case

This case evaluated whether SKETCH, a non profit community arts organization, should continue renting its space or move toward ownership, and how that decision should be financed without compromising its mission. The analysis focused on long term cash flow sustainability, debt capacity, and exposure to declining government funding rather than traditional valuation metrics. While ownership reduced long run occupancy risk, the core conclusion was that real estate alone would not solve SKETCH’s financial fragility. The recommendation emphasized ownership paired with diversification into private revenue streams to stabilize cash flows and support future refinancing.