Any resident experts in RE Option / Sale Leaseback Structuring?

investor profile

October 26, 2024

by an investor from The University of Arizona - Eller College of Management in Chicago, IL, USA

Trying to decide the best path forward with some real estate that’s available as a part of a biz purchase and looking for some help structuring likely an option but also considering sale leaseback option.

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Reply by a professional
from Villanova University in West Chester, PA, USA
^redacted‌ Absolutely, this is involved in many of our transactions. It depends on what makes the most sense and what the parties to agree upon. You definitely want a right of first option and right of first refusal at a minimum if you can. If you can get an option to purchase as well, definitely go for it, but be sure to include a valuation or valuation mechanism. There’s also a lease to purchase, but that may create an obligation to purchase depending on the language and may not be the right fit. We assist with this regularly, and I’d be happy to discuss it further.
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Reply by a searcher
from University at Buffalo, State University of New York in Herndon, VA 20170, USA
Rob - Wouldn't consider myself an expert but I did 4 to 5 lease options deals a number of years ago, and spent lot of time learning the technique. Not sure how the Sale Leaseback integrates with LO. I would lease property for 3-5 years with option to purchase during that time. Let know if I can help.
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