Sale Leaseback
CAPITAL MARKETS
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 Sale Leaseback Transaction?
Sale-leaseback transactions hold considerable appeal for both tenants and investors. They allow owner-occupiers to monetize their real estate assets and redeploy capital back into their core business. Further, a sale leaseback is a mechanism to transfer downstream valuation risk while securing maximum value and occupancy rights from a long-term lease. The gains realized from the sale will likely prop up your income statement and balance sheet. Most sale-leaseback transactions trade for a premium relative to like-kind non-sale-leaseback properties. And currently, rental payments from the new lease are 100% tax deductible versus only the interest portion of any mortgage financing.
For the investor, the steady and safe returns of a sale-leaseback transaction are attractive. And because a fresh lease is in place from the inception of the transaction, there is less risk of tenant default. The transaction will likely hedge against inflation depending on the lease term and escalations. The new owner now can capture any appreciation in the real estate. A sale-leaseback transaction also has lower management costs and risks as operating expenses and vacancies are lessened due to the longer-term tenancy. As a result, premium pricing on such assets is more easily justified.
Sale Lease Back Experience
From one location to a portfolio of hundreds, SRS’ sale leaseback professionals work side by side with clients across virtually every product type. And as part of the SRS National Net Lease Group, these professionals have access to one of the strongest net lease groups in the nation as well as the broader connection to all relationships within SRS and our clients.
Learn more about SRS’ National Net Lease Group