Sale-Leaseback: An Innovative Way to Unlock Capital for Business

As a business owner, you know that having access to capital is crucial for success. Whether you’re looking to expand your operations, purchase new equipment, or just have a cushion to weather economic storms, having access to cash is essential. One innovative way to unlock capital that you might not be familiar with is the sale-leaseback. In this blog post, we’ll take a closer look at what a sale-leaseback is, how it works, and why it’s a smart move for many business owners.

What is a Sale-Leaseback?

A sale-leaseback is a transaction in which a business owner sells their property, such as a building or piece of real estate, to an investor and then leases it back from the investor for a specified period of time. This allows the business owner to unlock the capital that was tied up in the property, giving them access to cash that they can use for other purposes.

How Does a Sale-Leaseback Work?

A sale-leaseback is a relatively straightforward transaction. First, the business owner sells their property to an investor. Then, they enter into a lease agreement with the investor, which outlines the terms of the lease and the rent that the business owner will pay over the life of the lease. The investor is now the owner of the property, and the business owner is now a tenant.

Benefits of a Sale-Leaseback

There are many benefits to a sale-leaseback, including:

  1. Access to Capital: The most obvious benefit of a sale-leaseback is that it provides the business owner with access to capital. This capital can be used for any purpose, including expanding operations, buying new equipment, or simply having a cushion to weather economic storms.
  2. Increased Liquidity: By selling a property and leasing it back, business owners can increase their liquidity, giving them greater financial flexibility.
  3. Improved Balance Sheet: A sale-leaseback can help improve a business owner’s balance sheet by reducing the amount of debt they have and increasing their liquidity.
  4. Long-Term Stability: The lease agreement in a sale-leaseback typically has a long-term duration, providing the business owner with stability and a predictable stream of income.
  5. Reduced Risk: By selling a property, business owners can reduce the risk associated with owning real estate, such as fluctuations in the real estate market.

In conclusion, a sale-leaseback is a smart move for many business owners looking to unlock capital and improve their financial situation. By selling a property and leasing it back, business owners can access capital, increase liquidity, improve their balance sheet, secure long-term stability, and reduce risk. If you’re a business owner looking for new ways to access capital, consider a sale-leaseback as a potential solution.

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Marty McDonnell

Construction & Development Partner / Chicago, IL

With over 20 years of development and construction
expertise, Marty has worked in a wide variety of industries include including mixed-use, healthcare, childcare, cultivation, office, industrial, retail, hospitality, cannabis and residential development.

Marty’s oversight of all company operations, including all phases of the development process ensures exceptional output for our clients. 

Marty graduated from Marquette University with a Bachelor of Science in Civil Engineering and then went on to receive his MBA from Washington University in St. Louis.

Jack Sbertoli

Construction & Development Partner / Chicago, IL

Mr. Sbertoli has worked in nearly every market sector
in the commercial construction world, with significant experience in commercial office, process piping, healthcare, site development, mixed-use, industrial, retail, multi-family and all three cannabis sectors (cultivation, processing and retail). 

Mr. Sbertoli has since expanded his business ventures into Ohio, Missouri, New Mexico and Tennessee. 

He has a Bachelor’s of Science in Civil Engineering from Marquette University and Master of Real Estate from DePaul University.

Everett Daniels

Construction & Development Partner / Raleigh, NC

Everett is an experienced real estate executive with over 20 years in the industry and more than $850 million in completed development projects.

He started his career as a lead superintendent at Bovis Lend Lease, managing over $250 million in ground-up construction projects, including office buildings, high-rise condominiums, data centers, retail spaces, historic restorations, global HQ upfits, and BSL-3 research facilities. ​ 

As President and COO of DeWitt Carolinas for 12 years, he oversaw the development of a $600 million portfolio, handling all aspects of the development process such as site selection, design, entitlement, deal structuring, debt placement, construction management, asset management, and disposition. ​ His leadership contributed to the successful completion of various projects, including condominiums, multifamily housing, student housing, offices, marinas, golf-course communities, and retail mixed-use developments. ​ 

He holds a Bachelor of Science in Construction Management with a minor in Business Administration from East Carolina University.

Jason Drewelow

Construction & Development Partner / Franklin, TN

Jason Drewelow is a development and construction execution professional with 21 years of experience leading build-to-suit delivery and expansion programs for growing operators across multiple markets with speed, discipline, and repeatable process.

Over his career, Jason has served as a senior leader and owner of a commercial construction and development firm, guiding projects from site evaluation through design, permitting, procurement, construction administration, and turnover. He has also provided development services for clients and helped build and scale a privately held real estate investment portfolio to approximately $75 million across 40 properties over a three-year period.

Jason’s experience spans retail, office, medical, dental, animal health, distribution, and other service-based and industrial-adjacent facilities, representing more than $1.5B in completed work. He is also a frequent national speaker to operator groups on real estate strategy, expansion planning, and disciplined growth execution. 

Jason holds a B.S. in Business and English from Mt. Mercy University.

Neil Albritton

Partner / Raleigh, NC

As a Partner at Haven and a member of the Executive Committee, Neil brings extensive expertise in commercial real estate, backed by more than 17 years of experience. 

Over the past decade, he has specialized in sourcing, structuring, underwriting, and executing sale-leaseback transactions. His leadership has been instrumental in closing over 500 deals for both privately held and public real estate investment firms, contributing to more than $6 billion in gross transaction volume.

Before joining Haven, Neil served as Senior Vice President and Head of Acquisitions at STORE Capital. In that role, he was a voting member of the company’s Investment Committee, managed a team of up to 15 acquisition professionals, and led the disposition strategy.

Neil holds a B.S. in Business Finance from Elon University.

Matt McParland

Senior Vice President, Acquisitions / Chicago, IL

As Senior Vice President of Acquisitions and head of Haven’s Chicago office, Matt is responsible for originating new sale-leaseback opportunities for the company, bringing over 9 years of real estate advisory experience to the firm. Prior to joining Haven, Matt served as Vice President in the Net Lease Investment group at Mid-America Real Estate, a Midwest advisory firm specializing in the acquisition and disposition of retail properties throughout the United States. Throughout his career, Matt has facilitated more than $400 million in total real estate transaction volume.

Matt received a B.S. from The University of Iowa and is a licensed real estate broker in the State of Illinois.

John Bradley

partner / Franklin, tn

As a Partner of Haven, John is the head of originations for the company. He is also a member of Haven’s Executive Committee.

Prior to Haven, Mr. Bradley led acquisitions for the Central U.S. at PennyMac Financial Services (NYSE: PFSI), a publicly traded mortgage REIT, where he facilitated the aggregation of $500 million in residential and commercial loans. Before his time at PennyMac, John spent seven years in acquisitions at Essent Mortgage Guaranty Inc. (NYSE: ESNT), a publicly traded mortgage insurer and reinsurer. During his time at Essent, John insured $3 billion in GSE-backed mortgages.

John holds a B.S. from Niagara University. He previously served on the Board of Directors at the Illinois Mortgage Bankers Association from 2017-2020 and as Chairman of the Affordable Housing Committee (2014-2020).