Sale Leaseback operational
Real Estate Advisors
SAB’s Sale Leaseback Group advises companies that exist to make products, provide services, and/or administer care. Through our Quality of Leasehold (“QofL”) assessment process, SAB educates operating companies on how their tenancy is valued and how to use it. This unlocks capital to invest in people, technology, and processes that will grow product and service profits. With 20 years of combined experience and more than $3 billion in closed transactions, we excel in lease monetization that empowers operating companies to grow income and expand market share.
Opportunity Cost of Owning
According to Green Street’s Commercial Property Price Index, US commercial properties appreciated on average 4.50% per year over the last 20 years. Therefore, a $5M investment in a building is expected to take 20 years to double in value.
OWNING VS. LEASING
Alternatively, offering a lease on the same building today is likely to unlock the same value. If a $5M investment could be monetized for $11.6M today, how could that capital be utilized to drive profitability of my core products + services and expand market share without relinquishing operating control of the building(s)?
Value of Tenancy
Recent Mandates
SAB’s Sale Leaseback Operational Real Estate Group has raised financing for product and service companies with retail, industrial, office, and medical properties spanning the entire credit spectrum with billions of dollars in revenue to $15M in revenue. Below are representative transactions detailing the process and use of proceeds.
| Tenancy Profiles | Transaction Profiles | Proceeds Raised | Use of Proceeds |
|---|---|---|---|
| Dealership | Sale Leaseback | $13M | Debt Repayment |
| Dermatology | Sale Leaseback | $5M | Dividend |
| Building Products | Sale Leaseback | $259M | Growth Equity, Acquisition Financing |
| Plastic Molding + Mfg | Sale Leaseback | $74M | Debt Repayment |
| Aerospace & Defense | Sale Leaseback, Build-to-Suit | $57M | Debt Repayment |
| Energy Equipment Mfg | Sale Leaseback | $20M | Debt Repayment |
| Beverage Co-Mfg | Sale Leaseback | $130M | CapEx, Acquisition Financing |
| Commercial Printing | Sale Leaseback | $65M | Acquisition Financing |
| Autism Therapy | Sale Leaseback | $25M | Growth Equity, Debt Repayment |
| Personal Care Co-Mfg | Sale Leaseback | $35M | Dividend |
| Metal Fabrication | Sale Leaseback | $89M | Acquisition Financing |
| Steel Distribution | Sale Leaseback | $10M | Acquisition Financing |
| Equipment Rental | Sale Leaseback | $11M | Dividend |
| Food Mfg | Sale Leaseback, Build-to-Suit | $194M | Grow Equity, Acquis Finc, Debt Repayment |
| Commercial Laundry | Sale Leaseback | $17M | Acquisition Financing |
| Auto + Truck Distribution | Sale Leaseback | $21M | Recapitalization |
| Trailer Distributor | Sale Leaseback | $8M | Recapitalization |
