Sale-leaseback advisory.
Convert owned operating real estate into capital while the business continues to occupy the property.
- Best for
- Operators, franchisees, and companies that own their operating real estate
- Common uses
- Expansion, acquisitions, debt payoff, partner buyouts, and succession
- Lease structure
- Typically long-term NNN, structured for investor demand
Real estate as a source of capital.
To a net lease investor, an operator’s owned real estate is an investment product defined by the lease the operator is prepared to sign.
In a sale-leaseback, the owner sells an owner-occupied property to an investor and simultaneously signs a lease to remain in occupancy. Illiquid equity becomes cash, typically at a valuation driven by the lease terms, while the operator retains operational control of the site. Proceeds are commonly used for expansion, acquisitions, debt reduction, partner buyouts or diversification.
Term, rent, annual increases, renewal options and the strength of the guarantee determine what an investor will pay. Rent set too high burdens the business, while rent set too low reduces proceeds. AMC models these variables to show how each affects both price and long-term occupancy cost.
The firm’s advisors work with the net lease investors who acquire these assets and understand how they underwrite operators. The team prepares the operator and property presentation together and runs a competitive process so the owner can select the strongest combination of price and terms.
Sale-leaseback execution.
A structured process designed to protect operations and support proceeds.
Feasibility & modeling
Proceeds modeled across rent, term and increase scenarios so trade-offs are clear before commitment.
Lease structuring
Lease terms that investors value and the business can support, including options and assignment rights.
Investor-ready package
Property and operator presentation, with the financial disclosure handled under confidentiality.
Competitive process
Outreach to private, exchange, and institutional net lease investors, with offers compared side by side.
Confidential marketing
Sale-leasebacks are marketed discreetly, under confidentiality agreements with prospective investors.
Closing coordination
Simultaneous sale and lease execution, coordinated with the owner’s attorney, lender and accountant.
The sale-leaseback process.
Defined milestones, managed by the same advisors from engagement through closing.
Discover
Goals, property review, and capital needs.
Model
Proceeds vs. rent, term, and increases.
Structure
Lease terms and guarantor package.
Market
Confidential, competitive investor process.
Execute
Sale and lease signed and closed together.
Sale-leaseback vs. other ways to raise capital.
A simplified comparison. Each situation differs, and options should be reviewed with a CPA and lender.
| Sale-leaseback | Mortgage / refinance | Keep as is | |
|---|---|---|---|
| Capital raised | Based on the value of the property under the new lease | Limited by loan-to-value and lender terms | None |
| Ongoing obligation | Lease payments, typically NNN | Debt service plus ownership costs | Ownership costs |
| Balance sheet | Real estate replaced with cash | Adds debt | Equity remains tied up |
| Control of the site | Defined by lease term and options | Full, subject to lender | Full |
| Future appreciation | Goes to the investor | Retained | Retained |
What kinds of businesses do sale-leasebacks?
Restaurant operators, auto service companies, retailers, medical and service businesses, and franchisees with multiple owned locations are common candidates. The key requirements are owned real estate and a business that can support a long-term lease.
How is the sale price determined?
Largely by the lease: the rent, term, increases, and guarantor, plus the property’s location and condition. Investors capitalize the rent at a cap rate that reflects the risk, and the team models how different terms change the outcome.
Can the process remain confidential?
Yes. The process can be run confidentially, with signed non-disclosure agreements from prospective investors.
What are the tax implications?
They depend on your situation. A sale may trigger capital gains, and lease payments are generally an operating expense. Owners should involve their CPA early, and the team will coordinate with them.
Request a confidential valuation.
There is no cost or obligation.