August 20, 2019

Sales Leaseback Concepts5

WHAT IS A SALE LEASEBACK?

A sale leaseback is a real estate transaction in which an owner-occupant sells the land and building used in their business operations to an investor and then simultaneously leases the property back from the investor on lease terms agreed to concurrent with the real estate transaction. Typically, this scenario offers a long-term investment for the investor, so the seller is able to negotiate a mutually agreed upon and clear set of lease terms directly with the investor.

Sale leasebacks have become more popular in recent years as a means of capturing peak market values while not going through the burden of a physical relocation.


WHO SHOULD CONSIDER A SALE LEASEBACK?

Any owner-occupant who wishes to monetize their land and building at today's market price.


HOW DO YOU STRUCTURE A SALE LEASE BACK?

This mainly depends on the goals and objectives of the owner-occupant. Our team has structured sale leasebacks from (2) years to (10) years.


SALE LEASEBACK CASE STUDIES

BENSENVILLE, IL
120,000 SF
2-YEAR LEASEBACK TERM
An owner-occupant had just merged their business with another entity. Over the next
24 months, both operations planned to consolidate under one roof, making the Bensenville property surplus. 
Capitalizing on market pricing while dictating flexible lease terms, including short-term renewal options should the consolidation effort take longer than planned, was of paramount importance. 
1401 Kirk

ELK GROVE VILLAGE, IL
140,000 SF
10-YEAR LEASEBACK TERM
An owner-occupant originally acquired their property during the low point of the real estate cycle and wished to monetize its gain. 

472 Thomas 22


Are you looking for a way to creatively maximize your business' earning potential? Contact us today to determine whether a sale leaseback strategy is right for you. Our team's pointed market knowledge will allow us to structure favorable transaction terms for all parties involved.