In our Sale-Leaseback Transactions (SLB) Program, we partner with business owners to provide capital and help optimize hidden real estate value.

Our program allows operators and equity sponsors to unlock capital through their real estate for higher ROI investment opportunities, balance sheet deleveraging, or cash distributions.. We leverage years of experience and understanding of the SLB market to provide a complete solution to clients across industries and property types.

With Four Springs as a partner, you are ensuring that your transaction is closed efficiently, quickly and with certainty. Our SLB experts will help you get one step closer to realizing your financial objectives.

Estimate the proceeds of a SLB Transaction

Benefits of Sale-Leaseback

Improved Liquidity

  • SLBs convert an illiquid asset (real estate) into a liquid asset (cash)
  • SLBs provide enhanced balance sheet flexibility for business owners
    • Cash used for debt pay-down, CAPEX, special dividends, or working capital

Enhanced Flexibility

  • Traditional debt financing alternatives often contain balloon maturities, and limit LTV to 60-70%
  • SLBs allow for the monetization of 100% of the asset’s value. It is structured on long-term leases (15 to 20 years) with multiple options to extend
  • SLBs can come at a cost competitive to debt financing and significantly lower than the cost of equity

Improved Financial Metrics

  • Proceeds from a SLB can be reinvested into growth opportunities with return profiles higher than those available on operating real estate
  • Redeploying the SLB proceeds into higher returning projects can improve financial metrics (ROE and ROI), expanding the total value of the company

Sale-Leaseback Structure

What does a Real Estate Sale-Leaseback Look Like?

Seller / Tenant Benefits

  • Continues to own and operate business
  • Transforms real estate assets into cash proceeds
  • Signs long-term lease providing business continuity

Purchaser / Landlord Terms

  • Provides cash up-front to Business Owner/Seller of property
  • Assumes no property management responsibilities
  • Receives rent payments

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