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Buyers Flex Muscles In Sale-Leaseback Terms

Good opportunities in corporate sale-leasebacks will be on the rise, but the availability of debt financing may still prove a hurdle.

By Michelle Napoli | Updated on May 07, 2009

New York City—Anticipation persists that good opportunities in corporate sale-leasebacks will be on the rise in the credit-crunch environment, but the availability of debt financing for SLB property investors may still prove a hurdle, according to speakers at the recent RealShare Net Lease conference in New York City.

US Realty Advisors chairman Richard Ader was certainly of that opinion, saying he “absolutely” believes said there will be more corporate sale-leasebacks coming to market. The problem, he says, could be their size. “I think they’re going to be too big, and debt financing is going to be a challenge.”

Gordon DuGan, president and chief executive officer of W.P. Carey & Co., notes that in today’s market, large transactions are proving difficult to price, too. Still, he said his company is able to buy properties from both sub-investment grade and investment grade tenants with good yields. Both Ader and DuGan were featured speakers on the conference’s Town Hall Meeting: The Net Lease Market Today & Tomorrow panel.

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