Partnerships Through Sale Leaseback Strategies
www.arrivatollc.com – Our firm has always been built upon the priority of bringing value to communities. This has stemmed from our experience as land developers and the owner of various businesses. With this being said, I believe we bring a different perspective to the capitalizing projects compared to bankers and brokers, which is why we are among the few professionals in the industry that truly understand how to properly structure sale leaseback transactions.
Some people might ask what are sale leaseback transactions?
A sale leaseback generally involves an investment grade entity who is seeking to sell an asset and lease it back. This allows the entity to fully leverage an existing asset to create liquidity using its investment grade credit strength, unlike a mortgage in which you can only leverage to a capped percentage based on several complex factors.
The entities we often find ourselves working with have been universities and municipalities at the federal, state, and local levels to help support their respective long-term economic development plans. We often bring these projects to reality by fully capitalizing the projects with minimal capital contribution requirements.
These structures generally will only require a university or municipality to work annualized payments into their operating budgets. This means we do not limit these entities to secure capital within their bonding capacity. We truly create public-private partnerships that bring immense value to communities throughout the United States and emerging markets globally.
With universities, we find a growing demand for research facilities and better housing as many collegiate communities are sprawling throughout the United States. At the municipal level in the United States, we see growing needs to upgrade or create new infrastructure as governments face many challenges with liquidity. Globally, many new markets continue to emerge with the need for infrastructure to populations that are becoming more sophisticated and demand basic services.
Why is our firm the best choice to address these challenges?
We have among the most talented team of professionals from a financial and legal perspective who understand the inner workings of most universities and municipalities around the country and with several global government entities. We know how to design transactions whether we are a principal or acting as an advocate to bring together proprietary sale leaseback structures. Since these transactions often require significant skill and experience, we are often a few grades above other professionals in creating true economic value within a community.