GRAND RAPIDS, MI-Locally based EasyLeasebacks, a division of Sperry Van Ness, has announced that it has secured $100 million to purchase properties for sale-leaseback deals. The company says many companies that cannot afford refinancing or just need cash are looking for SLB deals to keep business moving.
Four investors have contributed $25 million each to the plan, according to founder Peter Colvin. Three of the groups are family funds, while one is a non-traded REIT, he tells GlobeSt.com. This is just the first phase of capital, and more is available, Colvin says. “We have companies that have committed more than $1 billion, but we don’t want to overdo it at first,” he says.
Colvin says his office is seeing one building prospect a week, with many customers being franchisees that want to remodel storefronts. “It might cost them $400,000 to $500,000 to update their store, and it’s tough to get a bank loan for less than 70%. We can get them 100% of their funding, with a 60-day process from start to finish,” he says.
For example, the company is working with Meritage Hospitality on helping build a new restaurant concept called Twisted Rooster. “We’re providing sale-leaseback build-to-suits for their three new locations, including one here in Grand Rapids,” Colvin says.
The firm works with all property types, he says, and has done deals on two automotive manufacturing facilities in the Detroit area. “If it’s a strong company with good real estate, we can do the deal. There’s a limited supply of good assets to buy, it’s a great time for a company to do an SLB,” Colvin says.
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