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SALE LEASEBACK

Strategic Guidance. Professional Execution. Proven Results

Overview

A sale leaseback is an important vehicle to help fund a variety of business initiatives.

 

As an alternative to bank, mezzanine and mortgage financing, a sale leaseback can unlock your company's full real estate value, enable you to reduce your investment in non-core and non-performing business assets and free up cash in exchange for executing a long term lease.

 

Whether your organization is in good health or needs capital to solve business initiatives, a sale leaseback may be the right option for your organization.

Typical Terms

15 to 20 year term depending on several credit related and market related factors. A 20 year initial lease term will produce the most attractive cap rate and corresponding higher proceeds.

Type Of Lease

Triple net (NNN) lease which stipulates the tenant is responsible for all costs related to the ownership and operation of the property. This includes structure, roof, foundation, parking lot, etc.

Renewal Options

  • Four or more, 5-year options to renew.

  • Annual CPI increases in rent are typical, though it may be possible to get increases capped at 2% to 3%.

Experience

With over a half billion in complex sale leaseback transactions completed, WWM is the right partner for you. Reach out to our team today and let's start strategizing to maximize proceeds and deliver value for your organization.

Leaseback Benefits

  • No equity dilution

  • You set and agree to your own lease terms, rates, etc.

  • No change in operational control of the real estate

  • Potential tax savings

  • Non-recourse

  • A Leased Fee Value allows sellers to extract 100% of the value of their assets vs. 60%-70% conventional financing

  • Lease structure allows for long term control of the property

  • Raise inexpensive capital without giving up control

  • Enhance liquidity

When To Consider A Sale Leaseback

  • Capital for growth/acquisition

  • Undergoing a corporate restructuring

  • Alternative to senior or mezzanine debt

  • Planning to sell a business

  • Paying down debt

  • Unfunded pension liability

  • Partner buyout, retirement, succession planning

  • Reduce debt (Improves Ratios)

  • Expansion of current facilities

  • Take advantage of market conditions (Interest Rates)

  • Improve liquidity while company is in good health

  • Assets have appreciated well beyond book value (Improves Ratios)

  • Estate planning

Plan Your Work, Work Your Plan

A Sale Leaseback Approach That's Worked For 50 Years