Sale-Leaseback Structuring & Financing

For commercial property owners, sale leasebacks are great financing tools that can turn real estate equity into liquid capital. The CRE team has decades of sale-leaseback experience that can help your company unlock hidden value on your balance sheet.

The potential benefits include:

• Alternative to debt financing, eliminating financing costs
• Reduce existing debt and increase working capital
• Maintain control of your property via a long-term triple net lease
• Capitalize on current market conditions
• Enjoy significant potential tax advantages:
  • Leaseback rental payments are fully tax-deductible, compared to conventional mortgage financing, when only interest and depreciation can be deducted.
  •  A sale-leaseback can enable you to time the recognition of a gain or loss.

For investors, a sale-leaseback provides a cash-generating investment property and steady long-term rental income. Sale-leaseback agreements typically use triple-net leases, which place most of the financial responsibility of owning and maintaining the property on the seller/tenant. Potential tax benefits include investment tax credits and deductions for depreciation and mortgage interest (if the property acquisition is financed).