NNN Sale Leasebacks

Sale-leasebacks through Calkain Companies can offer an alternative to conventional financing as a means of raising capital. Sale-leasebacks allow business owners the opportunity to unlock capital currently allocated to an illiquid asset.

Calkain can assist owners in the sale of their real estate, while simultaneously structuring a long-term net lease with the purchaser, allowing the owner to retain operational control of their asset.

Calkain Companies is a leader in advising its corporate clients in single tenant net lease and portfolio sale-leaseback transactions.

Calkain’s team has closed over $1.7 Billion of sale-leaseback transactions. The sale-leaseback transaction allows a company to sell corporately owned real estate and simultaneously lease it back under a long-term lease with the buyer of the real estate.

The company can utilize the net proceeds from a sale-leaseback to reinvest them in a corporate purpose that will produce a higher yield. Corporately occupied real estate typically commands a return of 6% to 10%. The company can receive a higher return from allocating it’s capital to such uses as:

  • Acquiring another company;
  • Buying another building;
  • Expanding the company;
  • Reducing debt; or
  • Stock repurchases.

A sale-leaseback is also an excellent mechanism to raise capital to:

  • Replenish working capital;
  • Buy-out a partner; or
  • Provide the capital that allows a senior stakeholder to retire and structure an orderly transition to the next generation of owners.

Calkain has the technical knowledge and experience to structure a complex transaction and follow it through to a successful closing. We have been consistently able to obtain numerous offers from qualified investors resulting in successful executions on behalf of our clients.

Sale-leaseback transactions offer the following benefits:

  • Monetize 100% of the fair market value of your real estate versus today’s 50% to 70% value limitations in mortgage financing.
  • No change in operational control of the real estate.
  • Company controls the terms of the lease including rent, lease and renewal terms.
  • Excellent source of alternate financing in today’s difficult credit environment.
  • Alternative to debt financing for build-to-suit projects.
  • Typically short transaction closing process.
  • Enhances the company’s liquidity.
  • Company raises inexpensive capital without giving up ownership interest.

Advantages of using Calkain’s sale-leaseback division to close your transaction:

  • Experienced Calkain sale-leaseback team has closed over $1.7 billion of both single-asset as well as portfolio transactions.
  • The Calkain team and the company jointly establish a strategic plan in order to maximize the value of the real estate consistent with corporate objectives. This strategic plan also addresses critical provisions contemplated to be included in the lease.
  • Calkain utilizes its extensive contact list of principals and advisors to create a wide distribution of the offering to targeted potential investors.
  • Calkain’s strategically located offices provide us with strong local real estate market knowledge.
  • During the course of the transaction, we manage the process, communicating when necessary with the client, but minimizing direct client involvement.
  • The Calkain team has a strong track record in closing transactions for both investment and non-investment grade sellers which meet or exceed corporate objectives.
Traci BidingerNNN Sale Leasebacks