Sale-Leasebacks

Sale-Leasebacks

Sale-leaseback transactions can be an effective tool for maximizing a company's capital. A sale-leaseback transaction occurs when the buyer purchases a property and leases the property back to the seller at agreed-upon lease terms. Sale-leaseback transactions serve as an effective way for businesses to monetize their real estate assets, allowing them to redeploy capital back into various aspects of their business. 

Sale-Leasebacks

Typical Transaction Characteristics

    • Property Type: Single-tenant retail, office and industrial
    • Lease Term: 15 to 20 years
    • Closing Timeframe: Typically 45 to 60 days from engagement
    • Property Age: Newer construction preferred
    • Location: Mission-critical and strategic locations
    • Lease Type: Long-term triple- or double-net leases (roof and structure only)
    • Tenant Focus: Industry-leading, creditworthy tenants

Benefits

There are several reasons why a company may utilize sale-leasebacks, but some of the most common and beneficial uses include:
» Monetizing assets to refinance existing debt or recapitalize the company and de-leverage the balance sheet
» Unlocking equity tied up in real estate and redeploying that capital into the operating business, potentially generating a much higher return on equity
» Tax deductible rent payments
» Locking in long-term cost of financing, while sale-leaseback and debt market rates are at historic lows
» Allowing the seller to maintain operational control of the property for as long as needed

Sale-Leaseback Contacts

If you are considering sale-leaseback or development financing or have any additional questions regarding the process or benefits, please contact:

Retail
VEREIT

Our Commitment

As a full-service real estate operating company, VEREIT is driven to serve our tenants, stakeholders and employees through discipline, transparency and consistency.