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. (A. Scoulas, Information and Project Specialist)
E - EBSCO articles available for NAR members only. Password can be found on the EBSCO Access Information page.
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.
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).
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). E
When corporations want to unlock the value of their real estate, (NorthJersey.com, 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). E
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).
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
The following eBooks and digital audiobooks are available to NAR members:
The Art of Commercial Real Estate Leasing (Kindle, Adobe eReader, OverDrive READ)
Leasing Administration Simplified (Kindle, 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
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