As the realities of COVID-19's impact on the economy become clearer, businesses are looking to strengthen their capital reserves for immediate needs and other core activities.
A growing number of retailers, logistics firms and other corporate real estate users are selling their assets for an influx of cash. By using leasebacks, they are able to retain possession of their facilities.
"They sell the property to a third party buyer and then lease it back under a traditional long-term triple-net operating lease," says Jeff Berryhill, a principal at Stonemont Financial Group. "The objective is to be able to redeploy that capital for a higher and better use."
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