How does a sale-leaseback transaction work?
We will pay a negotiated amount for the real estate asset and then lease the premises back to the operator on a long-term basis. This provides the operator with freed-up capital while, at the same time, allowing them to continue to operate their business exactly as they always have.
What are the benefits of a sale-leaseback to a fitness center operator?
v Significant capital, previously tied up in the real estate, is freed up. These funds can be used for a wealth of purposes including fueling future growth, paying down debt, purchasing new equipment, and aiding in succession/buy-out scenarios.
v The fitness center’s business operations are entirely unaffected. A long-term lease will be executed at the closing of the real estate transaction, keeping complete control of the day-to-day operation of the business in the hands of the operator.
v As part of the overall sale-leaseback transaction, we can also finance remodeling costs, capital improvements, and building expansions.
Who are the ideal candidates for the initiative?
Ideal candidates will be operators wishing to free up the equity locked in their underlying real estate. Further, they will be seasoned operators of multiple facilities with aggressive growth plans. The initiative is most well-suited in circumstances where multiple transactions occur over time, with a symbiotic partnership evolving as a result.
Our partner is a U.S.-based commercial real estate investor, developer, and property manager focusing on single-tenant, net-leased properties. They provide 100% of the capital for each project they do, a significant portion of which is invested by their own internal team. In addition, they are comfortable and experienced doing projects anywhere in the United States.
If you would like to learn more about this initiative, please contact Jim Thomas at 214-629-7223 or firstname.lastname@example.org
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