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

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Why Not Use A Lender?

Why Not Use A Lender?

Many of the most profitable Top 150 dealers utilize Sale-Leaseback Capital for a portion of their transactions, here’s why:

Lenders require:

  • Lender Underwriting is burdensome to a business owner
  • Heavy guaranty structures, oftentimes personal
  • Heavy cash investment into a transaction, trapping equity in a transaction

Sale-Leaseback alternative:

  •  Legacy acquires at 100%+ of appraised value, trapping $0 equity
  • Light underwriting: Legacy acquires the property through a simple review of OEM statements
  • Our pricing maintains throughout the transaction
  • Closing is faster, as soon as 6 weeks

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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4 Questions Dealer Principals Should Be Asking About Their Real Estate

4 Questions Dealer Principals Should Be Asking About Their Real Estate

At some point, every dealer principal should consider how their real estate fits into their long-term strategy.

Your dealership may be performing at a high level—but a significant amount of capital may still be tied up in the real estate.

Understanding your options requires evaluating your business, marketconditions, and long-term financial goals.

1) Do you know what your dealership real estate is worth today?

Many dealers are surprised to learn how much capital is tied up in their real estate—and how that value has changed in today’s market. Understanding current value is the first step in evaluating your options.

2) Is your real estate working as hard as your dealership?

While your dealership generates operating income, your real estate may be sitting idle from a capital standpoint. A sale-leaseback allows you to unlock that equity and put it to work.

3) Could your real estate fund your next move?

Dealers are using sale-leasebacks to:
  • Fund acquisitions
  • Execute partner buyouts
  • Complete OEM image programs
  • Strengthen liquidity
Your real estate can be a strategic source of capital—not just a fixed asset.

4) Do you have a plan for the capital tied up in your real estate?

Unlocking capital is one step—but knowing how to deploy it is just as important.

Many dealers are using sale-leasebacks as part of a broader capital strategy to grow and diversify.

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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How To Reduce Your Exposure to Turbulent Markets

How To Reduce Your Exposure to Turbulent Markets

With uncertain times in place, Legacy’s sale-leaseback capital program provides dealers with immediate liquidity to boost their cash positions and weather the storm.

  • Focus on liquidity, cash is king in uncertain markets
  • Legacy acquires real estate from dealer and closes in 6 weeks
  • Dealer remains in a comfortable cash position differentiating them from their competitors

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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Acquisition Announcement

Acquisition Announcement

Legacy Automotive Capital is pleased to announce the successful closing of a non-luxury, public-tenant occupied dealership in the Atlanta MSA.

The transaction required expedited execution to meet critical closing timelines set by the corporate seller—highlighting the importance of speed, coordination, and certainty in today’s market.

We appreciate the collaboration from all parties involved and look forward to supporting continued growth across the automotive retail sector. 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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Use Case For Capital: Retirement & Generational Passdown

Use Case For Capital: Retirement & Generational Passdown

Dealers spend their life on the value of their business to benefit their family.

How does a dealer pass along their life’s work while also obtaining cash for retirement?

Solution

  • Sell your real estate at premium pricing and lease it back.
  • The retiring generation obtains cash forretirement while securing their family's Legacy for years to come.

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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Dealing with an unexpected Tax Bill?

Dealing with an unexpected Tax Bill?

An unexpected tax bill from the passing of a partner or patriarch can create financial strain for car dealers. A sale-leaseback strategy unlocks real estate equity, providing the liquidity needed to cover estate taxes without disrupting operations or taking on restrictive debt. This approach ensures business continuity, preserves cash flow, and allows dealers to retain control while meeting financial obligations. A smart solution for navigating unforeseen challenges.

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

SOLUTION

  • Sale-leaseback unlocks real estate equity to cover estate taxes without disrupting operations.
  • Provides liquidity without taking on restrictive debt or impacting cash flow.
  • Ensures business continuity while meeting financial obligations.
  • Allows dealers to retain control of their business during transitions.
  • A strategic solution for navigating unforeseen financial challenges.

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NADA Success Story – 2

NADA Success Story

With equity costs increasing and the lending market increasingly inefficient, a top dealer sought a market alternative.

Legacy provided a quick close solution to recapitalize the dealer through a Sale-Leaseback of 2 Hyundai Stores, a retail property, and a Collision Center in Massachusetts.

"Legacy was a great partner in helping us continue our growth by offering exceptional terms and streamlined closing process. The team at Legacy truly understands how to partner with Dealers.”
Matt McGovern
CEO of McGovern Auto Group

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

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