SALE-LEASEBACK ANALYZER
Property
Sale Price
$
Mortgage PayoffSeller's existing debt
$
Closing Costs
%
Lease
Annual Rent (NOI)
$
Lease Term
Annual Escalation
%
Lease Type
Tenant
Annual EBITDAFor rent coverage ratio
$
Buyer Financing
Exit & IRR
Holding PeriodDefaults to full lease term
Exit Cap RateDefaults to going-in cap rate
%
Exit Selling Costs
%
Cap Rate
6.50%
Going-in
CoC Yield Y1
6.37%
Cash-on-cash
Unlevered IRR
8.07%
10-yr hold
Equity Multiple
1.87×
on $5.10M invested
Seller / Tenant — Net Proceeds
Sale Price$5.00M
Closing Costs (2%)−$100K
Net Proceeds to Seller$4.90M
Tenant Obligations
Annual rent$325K
Lease term15 yrs
Total rent oblig.$5.62M
Buyer / Investor — All Cash
Purchase Price$5.00M
Closing Costs$100K
Total Acquisition Cost$5.10M
Returns
CoC yield Y16.37%
Unlevered IRR8.07%
Equity multiple1.87×
Cash paybackYr 14
Exit (Year 10)
Exit value$6.09M
Selling costs−$122K
Net exit equity$5.97M
Annual Cash Flow Schedule
15-year lease · 10-yr hold · 2.00%/yr escalation| Yr | Rent (NOI) | Net CF | Yield % | Cumulative |
|---|---|---|---|---|
| 1 | $325K | $325K | 6.50% | $325K |
| 2 | $332K | $332K | 6.63% | $657K |
| 3 | $338K | $338K | 6.76% | $995K |
| 4 | $345K | $345K | 6.90% | $1.34M |
| 5 | $352K | $352K | 7.04% | $1.69M |
| 6 | $359K | $359K | 7.18% | $2.05M |
| 7 | $366K | $366K | 7.32% | $2.42M |
| 8 | $373K | $373K | 7.47% | $2.79M |
| 9 | $381K | $381K | 7.62% | $3.17M |
| 10EXIT | $388K | $388K | 7.77% | $3.56M |
| 11 | $396K | $396K | 7.92% | $3.95M |
| 12 | $404K | $404K | 8.08% | $4.36M |
| 13 | $412K | $412K | 8.24% | $4.77M |
| 14PAY | $420K | $420K | 8.41% | $5.19M |
| 15 | $429K | $429K | 8.58% | $5.62M |
| Total | $5.62M | $5.62M | ||