In a sale-leaseback, you agree to sell your property to a commercial real estate investor and lease it back for a set period of time, usually at least ten years. While you occupy the building, you pay rent and operating expenses under the triple net structure. This gives you control over the building. When the lease expires, you have options to renew at pre-negotiated terms, letting you stay longer. Or, if you’re done leasing the property, you can walk away and leave it with the commercial real estate investor.
In traditional lending, banks have a cap on the loan amount, which is tethered to 60 to 75 percent of FMV. Conversely, simultaneous sale-leaseback transactions generate more capital than debt financing. In these arrangements, owners can access 100 percent of the real estate’s value.
In this type of transaction, the owner of a commercial property sells the property, while continuing to retain its use; operations continue without any disruptions. Welcome Group and the seller/tenant constructing a structured lease agreement, allowing the tenant to benefit by utilizing the property, without the financial constraints.
Welcome Group has a proven history of helping corporate clients realize the power of unlocked capital by executing acquisition sale-leasebacks. As real estate developers, we have been fortunate over the past 30 years to structure a diverse portfolio. Going forward, we are narrowing our focus; our primary goal is to negotiate multifaceted acquisition sale-leaseback transactions. Our target is the South and Southwestern regions of the U.S.
Our expertise is providing a suite of services to businesses that are defined as single-tenant. Companies following the trend are tapping into the hidden equity in their own real estate. To extract those resources, we blend our exemplary experience with our extensive knowledge of the real estate market. As each business is unique, we work diligently with the client to create a customized acquisition sale-leaseback strategy which allows them to allocate that capital more efficiently.
In the past 30 years, acquisition sale-leaseback arrangements have been picking up steam, as businesses are seeking creative solutions to redeploy assets. This cash flow infusion often acts as a catalyst to help clients secure capital. With funds in hand, they have the capacity to expand more rapidly and expedite growth.
A subsidiary of Welcome Group LLC, Welcome Real Estate Services provides our tenants with Certified Property Managers (CPM®) from the Institute of Real Estate Management (IREM). Our Tenants are given personal attention and full /direct access to us as landlord instead of working through a third-party management company. Welcome Real Estate Services works in partnership with our tenants by helping maintain the property and plan for our tenant’s goals of their business, whether expanding their existing facility or moving and expanding to a different facility without any disruption.
Our team of property managers focuses on maximizing your experience as a Welcome Group tenant by:
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Welcome Real Estate Services provides excellent due diligence to ensure tenants operate within legal parameters and accommodate any and all questions our lessees may have. We are dedicated to our tenants by providing the care and attention needed to keep their business running smoothly and efficiently.
Our real estate management services include, but are not limited to the following: