Case Study: Behind the Numbers of a Sale Leaseback

Case Study: Behind the Numbers of a Sale-Leaseback

Real-World Results from a Recent Leaseback
A Midwest dealer unlocked $12M in equity through a sale-leaseback.

What they did next:
→ Reinvested $4M in acquiring a second store
→ Paid down legacy debt
→ Preserved liquidity for ongoing growth

They retained full operational control — same store, stronger balance sheet.

Every dollar tied up in real estate is a dollar that could be fueling expansion. Dealer should see their real estate as a strategic asset — not just a sunk cost.

 

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

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Key Elements Every Dealership or Commercial Absolute NNN Lease Should Contain

Key Elements Every Dealership or Commercial Absolute NNN Lease Should Contain

As a professional dealership and NNN landlords, we at Legacy often encounter questions about what should go into a solid Commercial NNN Lease (Triple Net Lease). Whether you’re a dealership landlord or tenant, ensuring clarity and comprehensive terms are essential for a smooth lease agreement.

What is an Absolute NNN Lease?

  • Definition: Tenant assumes all responsibilities—property taxes, insurance, maintenance, and even major structural repairs.
  • Benefits for Landlords: Truly passive income with no management involvement.
  • Benefits for Tenants: Maximize property value in a sale. Full control over property operations and improvements – including image complains.

Tenant’s Responsibilities:

  • Taxes: 100% responsibility for property taxes, including any increases.
  • Insurance: Full coverage for liability and property insurance.
  • Maintenance & Repairs: From routine upkeep to structural components (roof, foundation, HVAC).
  • Capital Improvements: Clarify whether long-term upgrades or replacements fall under the tenant’s scope.
  • Financial Reporting: Report Financial annually to landlord.

Landlord’s Role (Minimal):

  • Ownership Only: Typically limited to collecting rent and retaining title to the property.
  • Lease Monitoring: Ensuring tenant compliance with agreed terms, such as insurance coverage.
  • Exit or Disposition Planning: Landlords may have responsibilities tied to property sale or lease transfer.

Additional Key Provisions:

  • Assignment/Subletting: Define tenant flexibility in transferring the lease.
  • Default Clauses: Remedies for non-payment or non-compliance.
  • Termination & Renewal: Ensure clarity on end-of-lease procedures and options.
  • Dispute Resolution: Arbitration or mediation to address disagreements efficiently.

Do Not Include:

The following items create sale, financing, an tax issues for both Landlord and Tenant:

  • Purchase Options
  • Right of First Refusal(s)

If you are interested in learning more about how Legacy can support your next project, please contact:

AUSTIN WOLFINGTON
610.304.9347 • Austin@legacyautocapital.com

TODD MARCELLE
914.671.8871 • Todd@legacyautocapital.com

Request Complimentary Valuation

Request Today