Envoy Net Lease Partners today announced that it has launched a new "reversible" sale/leaseback program that offers more flexibility than typical sale/leaseback formats to companies seeking to free up capital trapped in their real estate.
“This is a great alternative for companies that are going through transitions or need time to set up long-term financing,” said Ralph N. Cram, president of Envoy, who noted that the new program is unlike traditional sale/leaseback deals in which an owner sells a property and leases it back for what is usually a 15- to 20-year lease period.
Among other things, Envoy's flexible S/L financing option offers owners of industrial, medical office, retail and special-purpose properties short-term purchase options, partial leasebacks and short-term transitional lease terms that have previously been unavailable.
“Many companies avoid sale/leasebacks due to the need to sign long-term leases without any future flexibility,” Cram said. "The short-term flexibility makes (the program) unique, especially among sale/leaseback providers focused on smaller properties.”
Envoy recently closed its first transaction under the program with a $2.3 million acquisition of a 92,750 square-foot industrial property from FirstCharge Energy, a battery manufacturer for heavy machinery serving the transportation, wind and solar power, and marine industries.
A key provision in the lease gives FirstCharge the right to repurchase the property within the first two years of the lease.