Calkain Companies is a leader in advising its corporate clients in single tenant net lease and portfolio sale-leaseback transactions.
Calkain's team has closed over $1.7 Billion of sale-leaseback transactions. The sale-leaseback transaction allows a company to sell corporately owned real estate and simultaneously lease it back under a long-term lease with the buyer of the real estate.
The company can utilize the net proceeds from a sale-leaseback to reinvest them in a corporate purpose that will produce a higher yield. Corporately occupied real estate typically commands a return of 6% to 10%. The company can receive a higher return from allocating it's capital to such uses as:
- Acquiring another company;
- Buying another building;
- Expanding the company;
- Reducing debt; or
- Stock repurchases.
A sale-leaseback is also an excellent mechanism to raise capital to:
- Replenish working capital;
- Buy-out a partner; or
- Provide the capital that allows a senior stakeholder to retire and structure an orderly transition to the next generation of owners.
Calkain has the technical knowledge and experience to structure a complex transaction and follow it through to a successful closing. We have been consistently able to obtain numerous offers from qualified investors resulting in successful executions on behalf of our clients.
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Sale-leaseback transactions offer the following benefits:
Monetize 100% of the fair market value of your real estate versus today's 50% to 70% value limitations in mortgage financing.
No change in operational control of the real estate.
Company controls the terms of the lease including rent, lease and renewal terms.
Excellent source of alternate financing in today's difficult credit environment.
Alternative to debt financing for build-to-suit projects.
Typically short transaction closing process.
Enhances the company's liquidity.
Company raises inexpensive capital without giving up ownership interest.
Advantages of using Calkain's sale-leaseback division to close your transaction:
- Experienced Calkain sale-leaseback team has closed over $1.7 billion of both single-asset as well as portfolio transactions.
- The Calkain team and the company jointly establish a strategic plan in order to maximize the value of the real estate consistent with corporate objectives. This strategic plan also addresses critical provisions contemplated to be included in the lease.
- Calkain utilizes its extensive contact list of principals and advisors to create a wide distribution of the offering to targeted potential investors.
- Calkain's strategically located offices provide us with strong local real estate market knowledge.
- During the course of the transaction, we manage the process, communicating when necessary with the client, but minimizing direct client involvement.
- The Calkain team has a strong track record in closing transactions for both investment and non-investment grade sellers which meet or exceed corporate objectives.
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