From left: Joseph Mastrocola, Chris Capolongo, Ross Prindle, Patrick Luther, Ben Hidalgo, Will Pike
NEW YORK CITY—WarnerMedia's double sale leaseback, first in January 2014 at 10 Columbus Circle and then more recently at 30 Hudson Yards, has once again shined a spotlight on this option for financing. The Hudson Yards deal, reportedly exceeding $2 billion, gave real estate owners and businesses a reminder to consider the best way to put their capital to use.
At GlobeSt.com's RealShare 17th Annual Net Lease Conference, speakers on the panel “Sale Leasebacks: 2019 Market Outlook” agreed that now is a good time for these kinds of deals.
“Net lease is a pretty good hedge against recession relative to other asset classes,” said Joseph Mastrocola, director of investments at W. P. Carey. His company particularly favors industrial as just under half of their portfolio by rent is in manufacturing or logistics. He added those assets are not as capital intensive as offices and present a stronger argument for capital investments. Plus, sale leasebacks provide long-term yields.
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Betsy Kim
Betsy Kim was the bureau chief, East Coast, and New York City reporter for Real Estate Forum and GlobeSt.com. As a lawyer and journalist, Betsy has worked as the director of editorial and content for LexisNexis Lawyers.com, a TV/multi-media journalist for NBC and CBS affiliated TV stations in the Midwest, and an associate producer at Court TV.
