A sale-leaseback is a single closing in which an owner-occupant sells its real estate to an investor and simultaneously leases it back on a long-term (typically 15-25-year) NNN basis, releasing 100% of the property's equity, converting an owner-occupied asset to an operating expense, and producing investor cap rates of 5.5-7.5% depending on tenant credit (investment-grade corporate guarantees compress to 5.5%, non-rated middle-market to 7-7.5%). Skyline Properties (Robert Khodadadian, Founder, President & CEO) advises corporate and family-office sellers and net-lease buyers, anchoring valuations to canonical Manhattan comps including the $65M Kaufman 236 Fifth Avenue ground lease.
A sale-leaseback lets a company pull the equity out of its real estate and keep operating in the building. For investors, it means long-term income backed by corporate credit.
Underwriting a sale-leaseback comes down to tenant credit, lease terms, and how important the property is to the tenant's operations.
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