Elusive Sources of Capital Forcing Corporations to Re-Focus on Benefits of Sale-Leaseback Financing

  • June 20, 2000
  • • Written by: Jonathan S. Horn 

Summer 2000, Vol 25, No 2

Abstract: Many executives seeking critical funds to grow their companies are consistently confronted by an uneasy stock market, rising interest rates and investment capital largely chasing “new economy” opportunities. Here, the author recommends revisiting a proven, alternative source: the sale-leaseback option with a triple net lease. Explore the basic tenets for strategically converting real estate — particularly single-tenant properties — into working capital. This manuscript briefly reviews two recent deals and provides a basic tutorial on the benefits to corporations (tenants) and investors (landlords). It also highlights the risks involved going in and the prudence required after a deal is consummated.