MIAMI—How do sale-leasebacks really unlockvalue for a corporate real estate owner? And whatare the challenges involved in brokering these deals?

| caught up with Camille Renshaw,lead broker for Stan Johnson Company in New YorkCity. She specializes in the disposition of single-tenant,net lease assets nationwide and has structuredover $1 billion in investment sale transactions in the last 15years. You can still read part one of this interview, How Sale-Leasebacks Can Unlock SignificantValue, if you missed it.

| Can you give me an example of how asale-lease back unlocked value for a corporate real estateowner?


Renshaw: At the beginning of the recovery,American Forest Products, the largest supplier of wood to HomeDepot, was asked to expand their offerings to their clients andtake on more stores. This was an incredible new businessopportunity, but AFP needed more equity to capitalize on theopportunity.


SJC conducted a sale-leaseback across fiveproperties, giving AFP access to capital that was previously lockedup in their real estate. With that equity, AFP expanded theircredit revolvers, took on new business, hired more employees, andgrew their corporation's EBITDAR immensely.

| What are the challenges ofsale-leasebacks?


Renshaw: Buyers will be looking for a deepunderstanding of the corporation, its business plan, its keypersonnel, its competition, et cetera—much as though it was anequity investor, not a real estate investor. The strongest buyerpool will find the value of the real estate to be secondary to thefuture of the corporation and its core business.


Effectively communicating a company's business plan within thecurrent sale-leaseback market can be challenging.Experienced brokers and advisors are absolutely necessary in orderto execute a sale-leaseback at its highest valueunder the best terms.

| How do you overcome thosechallenges?


Renshaw: Experienced brokers and advisors willdevelop materials that are easily digested by the buyers'investment committees, communicating the corporation's past andfuture in the best light, given current market trends andneeds.

| Do you expect to see more or fewersale-lease backs in 2014? Please explain youranswer.


Renshaw: As corporations grow and expand, weexpect to see more, particularly in the office and industrialsectors.

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