Net Lease Forum:Appeal of SLB Stronger Than Ever

While the commercial real estate investment market as a whole continues to face soft transaction volume in light of the country’s liquidity crunch, sale-leaseback investors say they’re seeing a healthy pipeline of deals. Indeed, the difficulty corporations are likely facing in getting other forms of financing is making the sale-leaseback that much more attractive, they say.

“Our pipeline’s pretty robust at this point. I think there are a lot of companies out looking for alternative forms of financing as commercial banks and other lenders have tightened up their appetite for credit,” says Peter Mavoides, president and CEO of Princeton, NJ-based Sovereign Investment Co. “Corporations are still healthy and growing for the most part, and their capital alternatives are somewhat limited during this credit crunch.”

“I would anticipate this being a pretty active year for sale-leaseback transactions,” Mavoides adds.