Napco Companies

Sale-Leaseback

A sale leaseback will enable you to improve your balance sheet, free up needed capital, maintain use of the property, and much more. During a sale leaseback transaction, a business sells real estate it already owns, and then immediately leases the asset back through a long-term net lease and continues to occupy the property (the "leaseback").  The tenant continues to be responsible for maintenance, utilities, and insurance, therefore retaining control of the property.  When entering into a sale leaseback agreement, you receive 100% fair market value for your property, while conventional mortgage financing typically funds no more than 70% of the property's market value. 

What are the benefits of a sale-leaseback?

Improved Balance Sheet

The sale leaseback provides cash to pay down existing debt, expand business operations, create liquidity, and/or substantially improve your balance sheet and financial ratios.

Operational Advantages

During the sale leaseback you will maintain continuous use of the property you sell by immediately entering into a long-term net lease.  In addition, your leaseback can be structured to provide you with complete control over the property, as well.

Tax Advantages

The sale leaseback offers important tax benefits, including deductible rent payments.

Contact us today to discuss the the possibilities of a sale leaseback for your company.  CLICK HERE