When cash availability and liquidity are top priorities, entering into a sale-leaseback transaction can be a smart strategy. Sale leasebacks offer an effective way to monetize property, raise needed capital and provide a hedge against market uncertainties. If properly structured, a sale-leaseback can unlocks the full value of the property whereas conventional financing is typically limited to a specified loan-to-value ratio ranging from 60 to 80% of a property’s fair market value. Sale leasebacks can also move quicker than conventional financing with fewer underwriting requirements and costs.
An Exceptionally Experienced Team
Hinckley Allen’s nationally recognized real estate team has extensive experience representing seller/tenants, buyer/landlords, lenders, equity partners, REITs and other investors in sale-leaseback transactions.
With care, diligence and skill, we excel at structuring, negotiating and executing sale-leaseback transactions that coordinate all legal and business aspects of the deal to meet our clients’ specific needs and best position them for future success. We help sellers gain liquidity while retaining use and control over their real estate and enable purchasers to acquire valuable property with a stable and predictable return on their investment.
Hinckley Allen real estate lawyers have advised on single-property transactions and deals involving large portfolios of commercial properties. We work with national title insurance companies to facilitate title and survey work and deliver results that make sound business sense. In each instance, we take into account the nature and scope of the properties and assets involved and our clients’ goals. Then we advise on the best course of action to meet their objectives.
We provide comprehensive strategic counsel regarding every facet of sale-leaseback transactions. Our experience includes handling:
- Purchase and sale of properties across asset classes
- Lease agreements
- Financial Accounting Standards Board (FASB) compliance
- Tax advice
- Comprehensive due diligence, including title reviews
- Survey reviews
- Insurance-related issues
- Environmental concerns
- State and local law issues
- Transfer tax and special statutory requirements
- Post-closing transition
Experience Across Asset Classes
Our firm has advised on sale-leaseback transactions involving health care, education, banking, industrial, warehouse and logistics facilities, office, retail and mixed-use properties, manufacturing facilities, and many other types of properties. As a result, we bring industry experience and insight in structuring customized deals for our clients.
COVID 19 created a need for cash for many businesses which caused an increase in these deals. Our group has handled multiple sale leaseback transactions on tight timeframes. These have included primarily manufacturing, office and warehouse facilities throughout the country.
News & Insight
The impacts of COVID-19 on businesses are being felt across industries and around the globe. The impacts to many US businesses have been profound and quick access to cash has become of critical importance to many companies. At the same time companies’ ca…