{"id":1004154551,"date":"2016-10-05T09:25:22","date_gmt":"2016-10-05T17:25:22","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004154551"},"modified":"2022-12-08T04:27:42","modified_gmt":"2022-12-08T12:27:42","slug":"sale-leaseback-proves-successful-net-lease-strategy","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/","title":{"rendered":"Sale-Leaseback Proves Successful Net Lease Strategy"},"content":{"rendered":"<p><em><a href=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\"><img loading=\"lazy\" decoding=\"async\" data-attachment-id=\"1004154555\" data-permalink=\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/maxfreedman\/\" data-orig-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\" data-orig-size=\"800,853\" data-comments-opened=\"1\" data-image-meta=\"{&quot;aperture&quot;:&quot;2.8&quot;,&quot;credit&quot;:&quot;April Rocha Photography&quot;,&quot;camera&quot;:&quot;Canon EOS 7D&quot;,&quot;caption&quot;:&quot;&quot;,&quot;created_timestamp&quot;:&quot;1398435675&quot;,&quot;copyright&quot;:&quot;April Rocha Photography&quot;,&quot;focal_length&quot;:&quot;155&quot;,&quot;iso&quot;:&quot;1600&quot;,&quot;shutter_speed&quot;:&quot;0.0004&quot;,&quot;title&quot;:&quot;&quot;,&quot;orientation&quot;:&quot;1&quot;}\" data-image-title=\"MaxFreedman\" data-image-description=\"\" data-image-caption=\"\" data-large-file=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg?w=800\" class=\"alignright size-thumbnail wp-image-1004154555\" src=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\" alt=\"MaxFreedman\" width=\"150\" height=\"150\" \/><\/a>By Max Freedman, Managing Director, Sands Investment Group<\/em><\/p>\n<p>A franchisee of Bush\u2019s Chicken, a Texas-based fried chicken fast food chain, recently approached Sands Investment Group to discuss options to purchase a store from another franchisee that no longer wished to be in the fast food business. The acquisition sale-leaseback strategy developed by SIG provided numerous benefits to the franchisee, including no cash out of pocket for the purchase of the business or real estate and certainty of close.<\/p>\n<p>The deal also marked the latest in a string of sale-leaseback strategies developed with Bush\u2019s. In this case, the sale-leaseback model has emerged as a solution for Bush\u2019s to capitalize on market conditions and pull proceeds out of its real estate, to be applied to the business as a variety of solutions that meet the needs of each franchisee.<\/p>\n<p>There are numerous benefits to the net lease sale-leaseback structure: pay down debt, increase liquidity, fund business and real estate opportunities by separating the real estate purchase, or leverage market trends to fund business improvements to existing stores, among others.<\/p>\n<p>For example, in SIG\u2019s first transaction with Bush\u2019s, the firm helped a franchisee structure a new lease scenario in which his business could sustain a healthy rent figure and he could pull out enough proceeds to finance and fund a new expansion store. Within 30 days, SIG was able to generate five all-cash offers, which enabled the operator to dictate the future success of his current location as well as accomplish his expansion strategy.<\/p>\n<p>The sale-leaseback benefits extend beyond the operator. Drawing on SIG\u2019s experience, the developer is matched to an operator that can build concepts in their targeted region. The investor gains a stabilized long-term triple-net lease that is likely congruent to the real estate that they target for investment.<\/p>\n<p>Kings Family Restaurants had been looking for the right buyer for some time. SIG represented the buyer and provided the acquisition sale-leaseback financing necessary to close. To finance the transactions, the firm completed a sale-leaseback of the 12 restaurants to Store Capital, an Arizona-based REIT. In this way, the buyer was able to sell the real estate while simultaneously entering into a long-term lease, providing an opportunity to reinvest the capital into the operations.<\/p>\n<p>The benefit of the sale-leaseback strategy in this case was to allow the Kings Family Restaurants, already well-regarded in Pennsylvania, to put some value back into the chain. The buyer recognized that these assets were under-utilized and that there was a greater opportunity to increase cash flow with the right operational changes. The acquisition sale-leaseback formula was a win-win for all parties in that it created the necessary capital to finance the long-term plans for the restaurants.<\/p>\n<p>For Bush&#8217;s, the sale-leaseback has created greater business options by partnering with SIG\u2019s developer clients for equity placement and gaining access to site selection and construction services for its franchisees.<\/p>\n<p>All told, the sale-leaseback model is worth exploring to create a symbiotic growth plan from all angles.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Max Freedman, Managing Director, Sands Investment Group: The benefits of the sale-leaseback model today.<\/p>\n","protected":false},"author":1608,"featured_media":1004154555,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26296,21783,21749,21684],"tags":[],"class_list":["post-1004154551","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cpe-capital-markets-newsletter-article","category-investment","category-retail","category-viewpoint"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.4 (Yoast SEO v24.6) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sale-Leaseback Proves Successful Net Lease Strategy - Commercial Property Executive<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sale-Leaseback Proves Successful Net Lease Strategy\" \/>\n<meta property=\"og:description\" content=\"By Max Freedman, Managing Director, Sands Investment Group: The benefits of the sale-leaseback model today.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2016-10-05T17:25:22+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-12-08T12:27:42+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"800\" \/>\n\t<meta property=\"og:image:height\" content=\"853\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Max Freedman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/\",\"name\":\"Sale-Leaseback Proves Successful Net Lease Strategy - Commercial Property Executive\",\"isPartOf\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\",\"datePublished\":\"2016-10-05T17:25:22+00:00\",\"dateModified\":\"2022-12-08T12:27:42+00:00\",\"author\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/08e5be81ed578b151b90a15e9586dfd7\"},\"breadcrumb\":{\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\",\"contentUrl\":\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg\",\"width\":800,\"height\":853},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.commercialsearch.com\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Sale-Leaseback Proves Successful Net Lease Strategy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#website\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/\",\"name\":\"Commercial Property Executive\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/08e5be81ed578b151b90a15e9586dfd7\",\"name\":\"Max Freedman\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/c294bc0990de80ec8ad38addfae5b494a3a093235f4840d6312d5790b2e88fc7?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/c294bc0990de80ec8ad38addfae5b494a3a093235f4840d6312d5790b2e88fc7?s=96&d=mm&r=g\",\"caption\":\"Max Freedman\"},\"url\":\"https:\/\/www.commercialsearch.com\/news\/author\/maxfreedman\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Sale-Leaseback Proves Successful Net Lease Strategy - Commercial Property Executive","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/","og_locale":"en_US","og_type":"article","og_title":"Sale-Leaseback Proves Successful Net Lease Strategy","og_description":"By Max Freedman, Managing Director, Sands Investment Group: The benefits of the sale-leaseback model today.","og_url":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/","og_site_name":"Commercial Property Executive","article_publisher":"https:\/\/www.facebook.com\/CPExecutive","article_published_time":"2016-10-05T17:25:22+00:00","article_modified_time":"2022-12-08T12:27:42+00:00","og_image":[{"width":800,"height":853,"url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg","type":"image\/jpeg"}],"author":"Max Freedman","twitter_card":"summary_large_image","twitter_creator":"@cpexecutive","twitter_site":"@cpexecutive","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/","url":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/","name":"Sale-Leaseback Proves Successful Net Lease Strategy - Commercial Property Executive","isPartOf":{"@id":"https:\/\/www.commercialsearch.com\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage"},"image":{"@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage"},"thumbnailUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg","datePublished":"2016-10-05T17:25:22+00:00","dateModified":"2022-12-08T12:27:42+00:00","author":{"@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/08e5be81ed578b151b90a15e9586dfd7"},"breadcrumb":{"@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#primaryimage","url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg","contentUrl":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg","width":800,"height":853},{"@type":"BreadcrumbList","@id":"https:\/\/www.commercialsearch.com\/news\/sale-leaseback-proves-successful-net-lease-strategy\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.commercialsearch.com\/news\/"},{"@type":"ListItem","position":2,"name":"Sale-Leaseback Proves Successful Net Lease Strategy"}]},{"@type":"WebSite","@id":"https:\/\/www.commercialsearch.com\/news\/#website","url":"https:\/\/www.commercialsearch.com\/news\/","name":"Commercial Property Executive","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.commercialsearch.com\/news\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/08e5be81ed578b151b90a15e9586dfd7","name":"Max Freedman","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.commercialsearch.com\/news\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/c294bc0990de80ec8ad38addfae5b494a3a093235f4840d6312d5790b2e88fc7?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c294bc0990de80ec8ad38addfae5b494a3a093235f4840d6312d5790b2e88fc7?s=96&d=mm&r=g","caption":"Max Freedman"},"url":"https:\/\/www.commercialsearch.com\/news\/author\/maxfreedman\/"}]}},"jetpack_featured_media_url":"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2016\/10\/MaxFreedman.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004154551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/users\/1608"}],"replies":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/comments?post=1004154551"}],"version-history":[{"count":1,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004154551\/revisions"}],"predecessor-version":[{"id":1004615292,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/posts\/1004154551\/revisions\/1004615292"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media\/1004154555"}],"wp:attachment":[{"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/media?parent=1004154551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/categories?post=1004154551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.commercialsearch.com\/news\/wp-json\/wp\/v2\/tags?post=1004154551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}