(1) What is a sale leaseback?
A sale leaseback is a financing technique that provides an opportunity to raise cash for your business. A sale/leaseback takes place when a business sells real estate it already owns to a third party for its fair market value (‘the sale’) and then immediately enters into a long-term net lease and continues to occupy the property (the ‘leaseback’). Alternatively, the business identifies an existing building that it desires to use. It then allows a third party to purchase that property and immediately enters into a long-term lease to occupy the property.
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(2) Why should you consider a sale leaseback with ACF?
If real estate is not strategically important to your operations, why own it? By completing a sale leaseback with ACF, you can unlock the value in your real estate, increasing your cash on hand that can be used to grow your primary business. You will be paid full market value for your property which will provide cash to expand operations or pay down existing debt. There is no fee to your company.
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(3) What if you own land but have not started construction on your new building?
ACF can be involved at the outset, assisting in design, budgeting and structuring of the transaction. We are experienced in all aspects of real estate development and we can become an integral part of the project team.
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(4) What is a triple net lease?
A triple net lease is a contract between the landlord (buyer) and the tenant (seller) where the tenant remains in control of the building operations and continues to be responsible for building insurance, real estate taxes and maintenance. Sale Leaseback Benefits
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