For example, Transwestern client Flagler Construction Equipment recently closed a $17 million sale-leaseback
of its industrial portfolio in Florida, which provided valuable capital for Flagler and a desirable yield on the buyer's investment, Watson said, adding that Flagler needed to free up capital to purchase extra equipment and increase sales.
The key component to the sale-leaseback
transaction is the lease that will be negotiated between the seller and the third-party purchasing the property (the new owner).
The investor could be using the sale leaseback to diversify a larger equity portfolio or it could be a real estate investment trust specialized in sale-leaseback
The most obvious benefit is that the sale-leaseback
allows the business to convert equity in its real estate into capital that it can use in its business, while still retaining control (via a lease) of the property it has been operating in.
is an arrangement in which the seller of an asset leases back the same asset from the purchaser.
Business unit leaders also need to look at the key drivers and do the sale-leaseback
because of the business value not just because it will free up capital.
In it simplest form, a sale-leaseback
entails the sale of corporate real estate and the simultaneous commitment to a long-term lease, generally 15 years or longer.
Peck: Would you compare and contrast sale-leaseback
Citing ASA Investerings Partnership the IRS disregarded the transactions as a sham, holding that, in essence, they equated to a basic sale-leaseback
transaction between A and D.
This article examines gift-leaseback and sale-leaseback
transactions among family members and offers suggestions to avoid IRS attacks.
The facility is being used for the sale-leaseback
of nine locations in Texas, New Mexico, Ohio, Georgia, and Alabama.
Harris specializes in financing commercial assets with a focus on triple-net lease and sale-leaseback
transactions and will be responsible for overseeing Meridian's recently formed Arizona office.