Why Sale-Leasebacks are Coming Back Strong | FTI Consulting

Why Sale-Leasebacks are Coming Back Strong

Real Estate | Corporate Finance & Restructuring | GlobeSt.com (Reprint)

February 27, 2019

WarnerMedia created big buzz in January 2019 with the news of its proposed sale-leaseback of its tower at New York City’s Hudson Yards, which is still under construction. It was reported that the company hopes to raise approximately $2 billion from the sale of the 1.4 million-square-foot space it has taken there (and will not occupy until summer 2019).

The company had completed a similar transaction in 2014 as Time Warner, Inc., when it sold its interest in its Time Warner Center headquarters to a real estate investor and has leased it back until it is ready to move later this year to Hudson Yards.

Several other high-profile transactions have also drawn attention to the strategy, signaling that sale-leasebacks - whether they are in the office, industrial, retail, or hospitality sector -- remain attractive to sellers and buyers alike in today’s current environment.

Senior Managing Director Jahn Brodwin explains why in an article he recently authored for Globest.com

Reprinted with permission from GlobeSt.com © 2019 ALM Media Properties, LLC. All rights reserved. Further duplication without permission is prohibited.

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