Sale Leaseback
Sale Leasebacks that Meet the Mark
SRS helps clients unleash capital, reduce occupancy costs, or create an exit strategy for owned assets they still want to occupy. SRS Capital Markets professionals gain a deep understanding of each client’s unique corporate objectives and analyze current market data to produce viable options. SRS moves quickly to ensure speedy and accurate closing, so clients can get back to business with additional cash in their coffers.
Why consider a transaction?
Sale-leaseback transactions offer significant business advantages to property owners and operators alike.
Capital Liquidity
The seller can convert equity in a fixed asset to cash without the burden of balloon payments, call provisions, refinancing, or other issues associated with conventional financing. This liquidity can be reinvested into core business operations or expansions, while still retaining possession and continued use of the property for the lease term.
Full Cash Value
By utilizing a sale-leaseback strategy, a seller typically receives 100% of the property’s market value compared to typically funding restrictions associated with conventional mortgage financing.
Improved Balance Sheet
At the time of sale, a seller replaces all capital assets with cash on the balance sheet and removes any debt associated with the former property. Lease payments also become a deductible operating expense for the new tenant.
Favorable Lease Terms
Prior to the sale of the property, the seller is able to establish favorable lease terms that are appropriate for future operations, including length of the lease, predictable rental rates and increases, and other contractual conditions.
