Envoy's New "Reversible" Sale/Leaseback Program Offers More Flexibility Than Typical S/L Formats

The "reversible" sale/leaseback option offers far more flexibility than typical S/L formats.
"Many companies avoid sale/leasebacks due to the need to sign long-term leases without any future flexibility," Cram said.
"The short-term flexibility makes (the program) unique, especially among sale/leaseback providers focused on smaller properties."
Envoy's program offers owners of industrial, medical office, retail and special-purpose real estate properties loan options previously unavailable, including short-term purchase options.

CHICAGO, Oct. 16, 2018 /PRNewswire/ -- Envoy Net Lease Partners, a real estate finance company specializing in single-tenant commercial properties, today announced the launch of a new lending program that allows companies to monetize properties with the option to buy them back in the near term.

The "reversible" sale/leaseback option offers far more flexibility than typical S/L formats.

"This is a great alternative for companies that are going through transition or need time to set up long-term financing," said Ralph N. Cram, president of Envoy, who noted that the new reversible program is a big improvement on older-style sale/leaseback alternatives which usually require a 15- to 20-year lease period.

"Many companies avoid sale/leasebacks due to the need to sign long-term leases without any future flexibility," Cram said. "The short-term flexibility makes (the program) unique, especially among sale/leaseback providers focused on smaller properties." Envoy's program offers owners of industrial, medical office, retail and special-purpose real estate properties loan options previously unavailable, including short-term purchase options.

Envoy recently closed its first transaction under the program with a $2.3 million acquisition of an industrial property from FirstCharge Energy, a battery manufacturer for heavy machinery serving the transportation, wind and solar power, and marine industries. Envoy bought the 92,750 sq. ft. facility in Grove, Okla., and leased it back to FirstCharge for 20 years.

A key provision in the lease gives FirstCharge the right to repurchase the property within the first two years of the lease. FD Real Asset Advisors served as investment banker to the company.

About Envoy Net Lease Partners

Based in greater Chicago, Envoy Net Lease Partners is a leading provider of short-term financing for single-tenant net lease properties since 2011. Envoy provides up to 100 percent financing in the form of high-leverage construction and bridge loans, ground lease loans, traditional and reversible sale/leaseback financing, and JV equity financing for transactions that are often too small or complex to attract the interest of larger institutional investors and lenders.

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SOURCE Envoy Net Lease Partners