The Sale Leaseback Strategy

Why Consider the Sale Leaseback Strategy For Your Business?

Middle market businesses ranging from manufacturers and distributors to finance and insurance companies can now achieve top-market sale prices for sale-leasebacks of their headquarters facilities.

Key Benefits

  • Reallocation of Capital: Unlock stranded equity in the business for redeployment to purchase equipment, fund an acquisition, reduce debt, or for distribution to shareholders.
  • Improve Balance Sheet: Using an operating lease structure, covert long term assets to current assets, improve ratios and ability to service debt and credit line requirements.
  • Tax Savings: Fully deduct lease payments versus just the interest portion of mortgage financing. Take advantage of today’s low long term capital gains tax. Moreover, in many cases any realized gain can be amortized over the lease term.
  • Retain Control of the Property: A long term lease with renewal options ensures the business will retain control of the asset with prescribed occupancy costs for typically 10, 15 or 20 years.

Current Market Opportunity

Market conditions render now an ideal time to maximize proceeds from a sale-leaseback. Current favorable factors include:

  • Investor Demand for Yield: Private investment groups and REITS are hungry for sound, NNN-leased investment properties.
  • Low Interest Rates: Real estate values are at all time highs, largely on account of persistent, lifetime low interest rates.
  • Capital Supply in the Market: Investors currently have unprecedented amounts of equity to deploy, resulting in competitive bidding and fast closings.

Call Daren Hebold, CCIM for a confidential discussion today.

View our Sold Sale-Leaseback Transactions

Reference Materials: Sale-Leaseback Solutions, CIRE Magazine

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