A Sale-Leaseback is when an owner/operator of real estate sells their building to a third party then leases it back.

How a Sale-Leaseback Works

Why Do a Sale-Leaseback

To recognize the heightened value of the real estate that is created by the strength of the operating business. Further benefits include:

  • Maintain Control = determine optimal lease structure to meet short- and long-term goals.
  • (i.e. rents, CAM, term, right of first refusal, etc.)
  • Tax Advantages = full deductibility of lease payments, as opposed to depreciation and interest only deductions.
  • Access to working Capital = Discretionary capital to expand and/or update operations.
  • Improve Balance Sheet = reduce debt and liabilities.

Successful Sale-Leaseback Examples

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