Unlock Capital with a Sale Leaseback

A growing number of owner-operators are looking to structure a sale leaseback to free up the maximum amount of equity in their property. A sale leaseback is a financing tool that allows an owner-operator to sell their real estate interests to a buyer while simultaneously signing a long-term lease to occupy the property as a tenant and secure the location.

By separating the real estate from the core business, owner-operators can achieve significantly higher real estate values. Sale leasebacks provide flexibility in allowing owner-operators to sell their real estate while maintaining the freedom to partner their practice with a multi-unit operator down the line.

With a sale leaseback, the owner-operator can pull out 100% of the equity to invest into another project while still controlling the core business. Oftentimes this capital is used to open additional locations, expand current business, or acquire another business or real estate property.

Sale leasebacks are being used across all industries and are starting to become more prevalent, demonstrating their numerous benefits.

How Does a Sale Leaseback Work?

1. Evaluate the Business

  • We carefully analyze your business to structure a long term deal;
  • Rent/Sales – establish a sustainable rent based on unit level production;
  • Determine a lease term suitable to exit strategy.

2. Market Analysis

  • This is where SIG differentiates itself ourselves from the rest. We track the market diligently and gather data to meet the market’s expectations. Using market CAP rates we can accurately project a sales price for the real estate. Key factors include the strength of the guarantor behind the lease, unit level performance, intrinsic real estate values, and the restaurant concepts marketability.

3. Structuring a Lease

  • Once we have determined a rental rate and a price for the asset, we will use market standards to structure a lease outline. This will be memorialized in a formal lease of the prospective purchaser.

Check out 3 Ways SIG is using sale leasebacks to help operators during Covid-19.

About Sands Investment Group
 Sands Investment Group has extensive experience in all types of commercial real estate and is an industry leader in the urgent care net lease investment space. We can help you navigate and advise you on how to leverage your existing assets in the current economic climate and create capital to fund your future investments. 

With over 2,400 transactions in 48 states valued in excess of $5 billion since 2010, Sands Investment Group is the fastest growing net lease investment company in America. We provide highly personalized client services, employ innovative marketing techniques, and have access to an extensive network of investors to help you find the perfect investment or sell a property you own for the best profit. Call 844.4.SIG.NNN or send us an email to get started.