Although the reasons for considering a sale leaseback are numerous and often attractive, the details and steps to accomplish this can be complicated.

A sale leaseback is a financial agreement between an investor-buyer or operator where the seller of the commercial property negotiates the lease of the property as part of the sale. In most cases, owner operator businesses engage in this to free up cash in their commercial property asset without risk to the operations of their business.

SOME SALE LEASEBACK BENEFITS

• ACCESS TO CASH: The ability to access cash tied up in a commercial property to strengthen a business' financial statement without impacting their operations.
• INVESTMENT NEEDED FOR CAPITAL IMPROVEMENTS: The ability for the seller to negotiate property/building investment improvements that the business would otherwise be required to fund.
• BALANCE SHEET IMPROVEMENTS: The ability for the seller to replace a fixed asset with the cash from the sale as a current asset. The rent obligation is no longer disclosed to the balance sheet as a liability. This increases the ratio of current assets to current liabilities which increases the ability to service short-term debt obligations to lenders. An increase in cash may help a business secure financing for other capital expenditures. 

OUR APPROACH

We work side by side with clients to understand, analyze and create solutions to achieve their objectives. Our ability to understand a client's unique corporate objectives and knowledge of current market data allow us to produce strong options. We move quickly to ensure a quick and accurate closing so our clients can get back to business with more cash to work with.