Broadstone Net Lease Structured a Sale-Leaseback Transaction

Tower Radiology sold four of its imaging centers to Broadstone Net Lease Inc. for $14.5 million

The deal was structured as a sale-leaseback transaction, Colliers International said in a statement Friday.
The pricing is a national record for comparable, stabilized medical office buildings at a 7.47 Cap Rate  based on actual 2009 rents, brokers Camille Renshaw and Joshua Pardue said in the statement.
Investing in medical office net lease property is one of the hottest investment opportunities available right now to commercial real estate investors. Demand for medical facilities is increasing day by day as the baby boomer population ages, and the trend towards moving medical services closer to the patients continues broaden.

Sale-Leasebacks can offer an alternative form of conventional financing. Sale-Leasebacks allow business owners to unlock capital currently allocated to a potentially illiquid asset. Sale-Leasebacks can facilitate business owners in the sale of their real estate, while simultaneously structuring a long-term net lease with the purchaser, allowing the business to retain control of their asset.

Advantages Monetize your real estate Obtain 100% fair assessed value of your asset Improve working capital Convert illiquid assets into cash Consummate transactions quickly Improvement on company balance sheet Avoid risk of real estate ownership Increase borrowing capacity Attain tax advantages Lease terms and conditions can be tailored to meet the needs of the seller Enhance financial liquidity What can a sale-leaseback be used for? Sale-leaseback' have a broad area of disbursing cash proceeds for a company.Some of the more common reasons of why clients have participated in sale-leasebacks are: Our capital sources include: Pay down debt Finance Operational Growth and Investment Construct new facilities Purchase new equipment Invest in new technology Reallocate capital into core business activities Mergers and Acquisitions Executive and/or Management Restructuring Buy back company stock Cash proceeds in result of a sale-leaseback have no limit on the expenditure. A sale-leaseback transaction is a great alternative form of financing which allows business owners to fully maximize the value and position of their real estate assets.