The seller was a family office that structured an initial sale leaseback of the properties with the tenant.
com) is a boutique net lease and sale leaseback advisory group.
If the operator currently owns the real estate prior to the selling the business, consult with a commercial real estate professional who specializes in triple net or sale leasebacks to determine the best way to structure the sale of the asset either to the buyer of the business or to an investor.
From the buyer's perspective, a sale leaseback can be an attractive investment in the real estate category as it requires less maintenance and administration than many multi-tenant real estate investments.
Complete a sale leaseback to an investor with the existing operation with assignment to a new buyer.
Set up a sale leaseback pre-negotiated for the buyer of the business.
When looking at outright sale or sale leaseback, investors want credit, lease term (at least 10 years, but prefer 15), market rents with escalations.
As a result, companies end corporate property owners with significant real estate assets will continue to source capital via sale leasebacks
and investors looking to invest in real estate without taking a huge capital risk will be the likely buyers.
As a commercial real estate broker who specialized in sale leaseback transactions and the leasing of office facilities in Northern New Jersey in the late 1980's, I had the occasion to speak to many financial officers at the CEO, CFO, Treasurer and
Controller level inquiring to the potential of effectuating sale leaseback transactions on corporately owned property.
The sale leaseback is one vehicle that can enable credit-worthy companies to effectuate these changes.
Structured properly and in accordance with FASB guidelines, the sale leaseback is a means of off-balance sheet financing, which can allow the corporation to improve its return on assets, obtain long term low cost financing, enhance the balance sheet, avoid hostile takeovers, create profit, and raise cash.