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Field Guide to Sale-Leasebacks & Synthetic Leases

(Updated August 2015)

Often used as a financing alternative, sale-leasebacks offer financially struggling companies access to cash to pay down debt and improve the bottom line. And in a post-Enron environment, sale-leasebacks provide an alternative to the less favorable option of synthetic leases. Find out how sale-leaseback transactions have helped the balance sheets of hotel, restaurant, retail, and other businesses, in the articles and books in this guide. (S. Hogan, Manager, Library & Archives)


Q - ProQuest articles available for NAR members only. Password can be found on the ProQuest/Find Articles page.


About Sale-Leasebacks

Sale-leaseback: A technique in which a seller deed property to a buyer for a consideration, and the buyer simultaneously leases the property back to the seller.

Source: Glossary of Housing Terms, National Association of REALTORS®

Image Source: Barron's Educational Series, Inc. via allBusiness.com.


Benefits of Sale-Leasebacks

  • Reinvest in the company
  • Retire debt
  • Improve credit rating
  • Increase productivity
  • Make an acquisition
  • Get a better return on capital investment
  • Avoid negative impact from depreciation on the financial statement

Source: Right now sale/leaseback may be the only option to obtain cash and a healthier balance sheet, (ITRA Global, Oct. 12, 2009).


About Sale-Leasebacks & Synthetic Leases 

Sale/Lease-Back Deals Catch On, (Wall Street Journal, Aug. 11, 2015).

Sea Change Coming in the Accounting for Sale-Leaseback Transactions, (Equipment Leasing & Finance, Jul-Sep 2015). Q

The Science of the Sale-Leaseback, (W.P. Carey Inc. via YouTube, Nov. 11, 2014).

Sale-Leaseback Strategies: Maximizing Value, (Calkain Companies, n.d.).

Sale/Leaseback Transactions Moving Full Steam Ahead, (Mondaq, July 2, 2014).

Understanding Sale and Leaseback, (SSRN Working Paper Series, June 2014).

Sale-Leaseback Solutions: Examine the Business and Tax Considerations of These Transactions, (CCIM Institute, n.d.).


Advantages of Sale-Leasebacks

Corporate leasebacks on the rise, (NJBIZ, Feb. 16, 2015). Q

When corporations want to unlock the value of their real estate, (NorthJersey, Jan. 25, 2015).

Real Estate Sale-Leasebacks: What's the Attraction of the Net Lease Arrangement? (CIRE Magazine, n.d.)

Making the Most of Sales and Leasebacks, (Franchising World, July 2012). Q

Sale-Leasebacks Provide Capital for Core Business Investment, (CCIM Institute, n.d.).

The Corporate Sale/Leaseback Strategy, (Society of Industrial and Office REALTORS® Educational Foundation, n.d.).


Hotel & Restaurant Property Leasebacks

 How QSR Franchisees Can Benefit from Sale-Leaseback Financing, (Broadstone Real Estate, LLC, Jun. 23, 2015).

Six Firms Interested in Buying Bob Evans' Real Estate, (Wall Street Journal, Sept. 26, 2014).


Government Property Leasebacks

Plan to offload $250 million worth of State Government-owned CBD property, (News.com.au, Nov. 23, 2014).

Catalonia Said to Seek $190 Million of Sale of Buildings, (Bloomberg Business, Oct. 13, 2014).

Wind Farm Tax Credits Warrant Deeper Look, (Courthouse News Service, July 23, 2014).

Sale-Leasebacks Ease Italy’s Real-Estate Jam, (Wall Street Journal, July 15, 2014).


Healthcare Property Leasebacks

Why leverage third party capital in healthcare real estate? (Becker’s Hospital CFO, Apr. 22, 2015).

REITs See $350 Billion Hospital Property Market as Prescription for Growth, (CoStar, Apr. 8, 2015).

Ventas places $1.75 billion bet on Ardent as healthcare real estate market booms, (Modern Healthcare, Apr. 6, 2015).

Sale-leasebacks accommodate buyer and seller in today’s healthcare real estate market: 7 reasons why they work, 5 pitfalls to note, (DLA Piper, Oct. 22, 2014).

Montclair hospital sold for lease-back, (The Record, May 8, 2014).

Molina Healthcare Announces $158M Sale/Leaseback, (National Real Estate Investor, June 17, 2013).


Articles, Surveys & More From NAR 

—Find all of NAR's Commercial Real Estate Research here.

—Find an index to all NAR Research here.

Commercial Lending Trends 2015, (National Association of REALTORS®).

Expectations and Market Realities in Real Estate 2015 (National Association of REALTORS®).

Commercial Real Estate Outlook (National Association of REALTORS®)

The Commercial Real Estate Outlook is NAR's flagship commercial research publication. It is produced quarterly and includes the latest market information on five major commercial real estate sectors — industrial, office, multi-family, retail and hospitality real estate.


eBooks & Other Resources

eBooks.realtor.org

The following eBooks and digital audiobooks are available to NAR members:

The Art of Commercial Real Estate Leasing (Kindle, Adobe eReader, OverDrive READ)

Complete Book of Real Estate Leases (Adobe eReader)

Investing in real estate with lease options and "subject-to" deals (Kindle, Adobe eReader)

The Leasing Process: Landlord and Tenant Perspectives (Adobe eReader)

Leasing Administration Simplified (Kindle, Adobe eReader)

Negotiate the Best Lease for Your Business (Adobe eReader)

Books, Videos, Research Reports & More

The resources below are available for loan through Information Services. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Services at 800-874-6500 for assistance.

Real estate investors deskbook, (Boston, MA: West Group, 2011). HG 4521 Ar6Re

Commercial lease law answer book, (New York, NY: Vendome Group, 2008). KF 593 C6

Managing and leasing commercial properties, (New York, NY: Wiley, 2007). HD 1394 AL2ma

Real estate finance: theory and practice, (Mason, OH: Thomson Southwestern, 2003). HG 4029 C57 Ed. 6

Real estate sale/leaseback: a review of the advantages and disadvantages, (Washington, D.C.: Society of Office and Industrial REALTORS®, 1993). HD 1384 So1

Field Guides & More

These field guides and other resources in the Virtual Library may also be of interest:

Field Guide to Commercial Property Management

Information Services Blog


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