Transaction Mechanics
Seller
Benefits
- Capitalize on favorable market conditions affecting current value
- Liquidate real estate capital at 100% of its fair market value
- Avoid restrictive debt covenants with off balance sheet financing
- Real estate multiples exceed business earnings multiples
- Negotiable lease terms with 100% rent write-off and tax savings
Buyer
Benefits
- Risk adjusted returns based on credit and collateralized asset value
- Generate a rate of return greater than a financing cost of capital
- Predictable and relatively secure cash flows
- Low operating burden as the leases are long-term and triple-net (NNN)
- Deploy large sums of capital into portfolio transactions