#134 – Inside Our Industry – Sale-Leasebacks: Better than Ever

Posted on | Inside Our Industry

Acquisition/Leasebacks have been a key part of our business at Agracel for many years. We have often touted the advantages of a sale/leaseback for the manufacturer. Our broker friend Bill O’Connor with CBRE recently shared a post that supports our thoughts on the advantages of selling a property and leasing it back. Click on the link below for the full report.

Sale-Leasebacks: Better than Ever

A Lease means rental payments. However, rent is 100% deductible verses interest payments. Also, owner occupied sale leaseback transactions provides sellers the ability to dictate their own lease terms – i.e., lease length, number of option periods, lease type, options to purchase, right of first refusal, etc.

Selling now will allow you to pin down a lease rate verses gambling on higher interest rates in the future. Seeing as the market is currently unstable pinning down a rental rate now just makes sense.

Employing Your New Equity

  • Positioning your company for new advantageous/distressed acquisitions
  • Tax advantages
  • Paying down floating rate debt
  • Buying out partners

Click here for Bill’s full report.

Click here for Agracel’s Guide to Understanding a Sale-Leaseback