Sale Leaseback Defined

A property owner sells real estate used by its business to an investor and, as part of the same transaction, leases it back from that investor. Therefore, the business owner becomes the tenant and the investor becomes the landlord. The seller (now tenant) receives the sales proceeds from the property sale and pays the new owner (investor) rent over the lease term. The seller (now tenant) no longer has its capital tied up in the property.

Property owners unlock capital by selling their real estate and retain long-term control through a lease. This tactic can generate cash and owners free themselves from the financial burden of ownership and the terminal value risk. The unique structure of sale leaseback transactions allows a property’s owner occupant to sell their real estate to an outside investor and simultaneously execute a lease to convert the occupant into a tenant rather than the owner. The occupant is able to exit the ownership role but remain in the property as a tenant continuing to utilize the real estate without the ownership. The sale leaseback is a way to “monetize” a property for owners who desire liquidity and flexibility.  Medical sale leasebacks and private business sale leasebacks are very active areas of focus.

Process

We are dedicated to the total Client Experience. We provide our clients with over 50+ years combined experience that are solutions tailored to optimize their specific goals. Our corporate strategy is simple: Client First.

Analytics

We have a specialized team of data and research analyst dedicated to analyzing property markets from a macro perspective considering trends and forecasts for economic indicators including GDP, employment, demographics, and points of interest. From a micro level, we drill down to the strengths and risks associated with the property, focusing on location, lease structure, investment potential, and overall highest and best use analysis (HBU).

Exposure

We have an in-depth marketing plan that helps elevate and differentiate us from other companies. Our marketing includes: offering memorandum/package and plan, professional photography/videography, premium digital and search optimization, advertising, direct marketing, in-bound search/property inventory requests, accountability, and technology driven process for pursuit/follow through.

Results

Though the various avenues of our services once can achieve a multitude of results: Lump sum cash, frees capital, liquidity, no debt, operating lease payments, seller’s market, flexibility, diversification, and freedom.