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. Learn more about our capabilities and featured transactions here.

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
Restaurants
Office