Benefits of a Sale-Leaseback

In a sale-leaseback transaction, the real estate buyer will purchase and leaseback the property to the current owners.

In addition to purchasing the property, some of these buyers will also provide the capital needed to expand and/or renovate the ASC/MOB without loan guarantees from the physicians/sellers.

The many potential benefits of a sale-leaseback include:

• Sellers receive cash to invest in growth investments or to reinvest into the business.
• Provides capital to modernize or expand the facility.
• Sellers can pay down existing business debt and remove loan guarantees.
• Sellers can pay off construction loans and business equipment increasing EBITDA.
• Resetting the lease can lower rent and increase EBITDA.
• Could eliminate ordinary income tax on rent received.
• Sellers can maintain full operating control over the property.
• Removes potential conflicts between partners who do not own the real estate.
• Facilitates adding new partners who do not have to buy into the real estate.
• Sellers can have the option to stay on as minority partners in the real estate.

Case Study

Multi-Practice Orthopedic


Sale-leaseback transaction of 34,697 square foot multi-practice building that includes 29 exam rooms in 5 clinic PODS, 1 EMG room, 2 X-ray rooms, 1 Fluoroscopy room, 2 cast rooms, 7 bays and 2 Operating Rooms. Real estate was sold under a single long-term absolute NNN master lease. - Warner Robbins, Georgia

Thousand Oaks Surgery Center


Sale-leaseback of free-standing, 4 Operating Room multi-specialty ASC. The facility has 16 pre-op/recovery beds with 2 private rooms for overnight stay. The neurosurgery, spine, orthopedic and pain management center was sold under the terms of a long-term master lease to private equity firm in a 1031 exchange. - Thousand Oaks, California

Surgery Center of Viera


Sale-leaseback of a renowned spine surgery center and clinic located in the Space Coast region. The 20,000 square-foot surgery center and Spine Institute building also provides X-rays and MRI/ imaging.
The property was sold under the terms of a 15-year NNN lease to a Real Estate Investment Trust. - Melbourne, Florida

Wellness Ambulatory Surgery Center


Sale-leaseback of free-standing, state-of-the-art, new construction ambulatory surgery center. The facility has 4 Operating Rooms, 1 Procedure Room and 20 pre-op/recovery beds with 5 private rooms for overnight stay. The physician owned center was sold to a private investor in a 1031 exchange. - McKinney, Texas