The seller was a family office that structured an initial sale leaseback
of the properties with the tenant.
From the buyer's perspective, a sale leaseback
can be an attractive investment in the real estate category as it requires less maintenance and administration than many multi-tenant real estate investments.
financing is a common vehicle utilized by retail chains to finance the expansion of their retail outlets.
Craig Homan, President of ECP, said, "We have scrutinized the sale leaseback
market for several years, shopping providers and examining proposals, and each time resisting the seemingly laborious process so that we could continue to hold on to our real estate.
Every year we've done more and more sale leasebacks
The firm has represented CVS Corporation in sale leaseback
transactions over the last six years involving the sale of over $2.
Controller level inquiring to the potential of effectuating sale leaseback
transactions on corporately owned property.
2 million sale leaseback
transaction with Senior Housing Properties Trust (NYSE: SNH) for 31 of the LTA communities.
Together, they have completed numerous bankruptcy and sale leaseback
transactions relating to many retailers, including Service Merchandise in 2002, Levitz and HomeLife in 1999 and 2002, respectively, Montgomery Wards and Lechmere in 1998, Hechinger in 2000, and Kmart in 1995 and 2002.
Upon consummation of the sale leaseback
transaction, WCAS and Constellation will provide funding consisting of approximately $170 million in subordinated debt facilities (the "Shareholder Notes" or "Notes"), which the company will use to acquire the CWA assets and fund ongoing capital expenditures and working capital needs of the newly acquired assets.
In this case, Ripplewood used sale leaseback
proceeds to fund the buyout of Lillian Vernon.