Case Studies
Purchase/Lease
Sale/Leaseback
Build-to-Suit/Lease


Sale/Leaseback
 
The Situation:
The Melrose Group owns over 30 homes that are expected to hold a fair market value of $6 million dollars. The current issue regarding the Melrose Group's properties, however, is level of risk attributed to not having a well-diversified asset portfolio. After carefully evaluating all of the available options, the Melrose Group believes that it would be simplest to perform a sale/leaseback.
 
The Process:
  The Melrose Group and the CGP team review the current available budget for leasing and come to a working agreement on the requested lease terms and conditions
     
  CGP has all of the homes and/or facilities inspected and appraised
     
  The Melrose Group and CGP agree on a purchase price that is equal to or less than 100% of the portfolio’s fair market value
     
  The terms and conditions of the lease are finalized
     
  CGP tends to all of the closing activities
     
  The sale/leaseback transaction is completed
     
 
Typical Time Frame (Date of Initial Contact to Moving In):
  Less than 60 days
 
The CapGrow Partners Advantage:
  CapGrow Partners assumes 100% of the financing risk
     
  CapGrow Partners has allowed the Melrose Group to minimize the amount of risk attributed to holding a large volume of real estate assets
     
  CGP has provided the Melrose Group with up to $6m in new capital
     
  The Melrose Group could have the opportunity to enhance the value of their foundation, as well as make alternative investments
     
  The Melrose Group has entered into a lease agreement that was specifically designed to meet both the operation's needs, as well as the needs of the residents living in the home
     
  The CGP team provided the client a Committed. Responsive. Experienced. solution
     
 
Additional Benefits:
  Due to diversifying their investment portfolio’s risk, the Melrose Group can now have more confidence in making alternative investments
     
  The Melrose Group has reduced, and possibly eliminated, the amount of long-term indebtedness on their balance sheet
     
  The rent is fully deductible over the term of the lease, which in turn allows for a for-profit company's after-tax cost to be less than if they would have used an alternative form of asset-based financing
 
 
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Chicago, IL 60614
 
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