How Can You Benefit from a Sale-Leaseback Transaction?

What is a Sale-Leaseback?

A sale-leaseback (SLB) occurs when a company sells the land and facility used in current operations
while also, signing a long-term lease with a buyer. This allows you to maintain control of your operations and your facility.

Why do a Sale-Leaseback?

Generate Capital

Quickly liquidate your real estate and get 100% of market value versus a typical 70% loan to value (LTV) loan.

Upgrade Infrastructure

Use the proceeds from your SLB transaction to reinvest in developing your business from the inside, out.

Grow Your Business

Use the capital you’ve gained to buy more locations to grow your operations.

Reduce Taxes

Deduct 100% of your rent expense versus only the interest portion of your debt.

UNLOCK THE VALUE

of your real estate through a sale-leaseback

The Right Time is Now

Gaining in popularity, SLBs have increased to over $12 billion in transaction volume according to Real Capital Analytics.  The US economy has slowly but steadily recovered from the recession, and now under the new administration, there is a push for continued growth.  Companies need cash to grow and are turning to SLBs.

The net lease sector in commercial real estate has remained strong as there has been an influx in domestic and foreign capital, all looking for attractive, stable investments contrary to the volatile capital markets.  As interests rates begin to climb, we expect to see tenants wanting to take advantage of locking into long-term leases in efforts to control operating expenses for years to come.

No doubt, there are a lot of reasons to consider a sale-leaseback right now.  Let us walk you through the process to determine the right strategy that will allow you to maximize the benefits of selling your real estate and entering into an advantageous lease.  We will thoroughly explore the right balance of financial returns and operational flexibility, diligently set up the appropriate lease structure and outline the tax implications resulting from the SLB, all to maximize your capital.

Ways to Use Your Capital

Re-Invest

Tackle those overdue upgrades to your company infrastructure and improve productivity, earning higher returns from your core business than your real estate produces.

Fund Expansion

Raise capital to add more locations or acquire another company and gain a competitive advantage.

Restructure

Whether it’s to repurchase stock or buy out a partner, use the capital to gain back control.

Diversify

Invest outside your core business function to spread out your risk.

Amanda WillisHow Can You Benefit from a Sale-Leaseback Transaction?