Sale Leaseback

Sale Leaseback Structuring
McGowan can structure and place sale/leasebacks and other financial vehicles for corporate users looking to sign long term leases and remove the real estate from the balance sheet.   There is a healthy investor market for long term single tenant NNN leases and users are often able to quickly liquidate their real estate without moving.

Sale Leaseback Advantages to Tenant
  • Immediate access to capital
  • Keep transaction off balance sheet
  • Continued operational control of facilities
  • Increased Return on Assets (ROA)
  • Increased Return on Invested Capital (ROIC)
  • Increased borrowing capacity through strengthened balance sheet
  • Loan Proceeds up to 100% of FMV versus 60-80% LTV
Due Diligence Process
  • Analysis of corporate credit
  • Physical analysis/appraisal of real estate
  • Lease contract underwriting or lease creation
  • Immediate access to investment funds
  • Expeditious underwriting and closing process
  • Your real estate increases in value with a leased asset and can improve earnings
  • Allows easier expansion
  • Funds available for other corporate activities (Reinvest into existing operations, pay down debt, finance growth, acquisition)
  • Investment diversification for long-term estate planning
  • Longer term capital (10 to 25 years) than traditional debt sources
  • Cost comparable to debt and less than cost of equity 
Innovative Financing For:
  • Senior or Mezzanine debt reduction
  • Mergers & Acquisitions
  • Leveraged/management buyouts
  • Corporate restructuring/exit financing
  • Acquiring additional facilities, technology and equipment to grow the business
  • Constructing new facilities
  • Early dividend allocations to investors
  • Transition out of a mortgage or other binding debt instrument
Please contact us if you are interested in learning more about a sale-leaseback.