Practice
Sale-leaseback
Last updated
How does C3 CRE handle sale-leaseback?
A sale-leaseback lets an owner-operator sell the real estate it occupies and lease it back, converting equity into working capital while keeping operational control. C3 CRE structures the lease first — term, rent, escalations, options and responsibilities — because the lease determines the price.
How we work
In a sale-leaseback the lease is the product. Investors buy the income stream, so term length, rent level relative to market, escalation rate, renewal options, and who carries roof, structure and taxes drive the cap rate and therefore the proceeds.
Set rent too high and the property will not survive the buyer's appraisal or a future re-tenanting. Set term too short and the cap rate widens. We model the trade-off between proceeds today and occupancy cost for the next fifteen years before going to market.
For operators whose credit is not investment grade — including cannabis and other specialty operators — we know which buyer pools will underwrite the story and which will not.
What you receive
- Lease structure modeling: term, rent, escalations, options, responsibilities
- Proceeds-versus-occupancy-cost trade-off analysis
- Cap-rate positioning and buyer-pool targeting
- Credit presentation for non-investment-grade operators
- Coordination with lenders, accountants and counsel through closing
Questions
Common questions
- How much of my equity can a sale-leaseback release?
- Typically the full market value of the real estate, less transaction costs — but the value depends on the lease you sign back. We model several structures before committing to one.
Next step
Talk about a sale-leaseback assignment
Send the asset, the market and the constraint. You will get a response from a broker who works this practice, not an intake form.
Related
Other practices
Cannabis acquisitions & dispositions
Licensed cannabis cultivation, processing and retail real estate — municipal opt-in analysis, buffer-zone diligence, license-and-real-estate combination sales, and buyers who can actually close.
Buyer & seller representation
Full-cycle representation on the buy and sell side of commercial property — pricing, exposure strategy, negotiation and closing management.
Site selection
Data-led site selection for operators and franchisees — drive-time and demographic screening, zoning and use verification, and multi-site rollout sequencing.