Equity Raise Through a Sale Leaseback on the Real Estate

An equity raise through a sale leaseback allows a company to unlock the capital trapped in its real estate by selling the property to an investor and simultaneously leasing it back on a long-term basis. This structure converts an illiquid asset into immediate cash while the business maintains full operational control of the facility. How It Raises Equity: The company sells the property at market value and receives a lump sum at closing. That capital functions as an equity raise, since it strengthens the balance sheet without taking on new debt. Proceeds can be used for: Expansion, acquisitions, or growth initiatives Paying down higher-cost debt Funding equipment, working capital, or distributions Improving leverage ratios ahead of financing or a recap Why It Works: Real estate investors generally value the property based on the rent you agree to pay and tenant credit, often producing a higher valuation than bank financing or appraisal-based lending would. It’s a non-dilutive capital solution: owners give up no equity in the operating business. The company remains in the space under a long-term NNN or NN lease, preserving operational continuity. Typical Terms 10 to 20-year initial lease term Annual rent bumps, typically 2 percent to 3 percent NNN Leases Cap rates dependent on industry, credit, and building fundamentals A sale leaseback serves as a strategic equity-raising tool for companies looking to strengthen their financial position or fund growth, without taking on debt or giving up ownership in the business. If you own a business with real estate or you are under LOI to purchase a business with a real estate component feel free to email me to see if the real estate can qualify. redacted