Sell your your real estate to us and transition your business
Convert your equity into cash and continue to operate your business from the same location
Have us purchase the location(s) you want to move into
Transform your rental payments into down payments to purchase your location
What is a sale-leaseback? How can it help you achieve your goals?
Whether you're considering or just want to know more, a sale-leaseback is a fairly common real estate transaction that allows you to sell your property without having to move your business.
A sale-leaseback is a transaction that occurs when an owner sells an asset and then leases that asset back from the buyer, usually for a long period of time. This means the owner can continue to occupy a property once they’ve sold it to their new landlord — they now become the lessee and the buyer becomes the landlord.
It is a fairly common transaction, US sale-leaseback net-lease volume is $8-$10B a year. (CREXi)
If you’re trying to figure out whether a sale-leaseback is right for you, there are many benefits to consider. As a seller/lessee, you can:
Of course, like anything else, there are some drawbacks to sale-leaseback transactions. Keep in mind you will probably face some tax and business implications, as well as time and money invested in executing this transaction. These things are different for everyone and depend on your jurisdiction, so you should discuss them with professionals, such as your accountant and real estate agent.
Sale-leaseback transactions often happen between commercial property owner-occupants and real estate investors. First, the owner-occupant sells its asset to the investor, which then leases it back to that original owner usually in a long term (10+ year) lease. The seller now has capital freed up for other purposes, and the investor has gained a cash-flowing asset which helps them diversify and expand their income.
Overall, sale-leaseback transactions can make a lot of sense for both sellers and buyers. If you’re interested in learning more about whether a sale-leaseback is right for you and how they might help you achieve your goals, give Keyway a shout.