• Key considerations for a sale-leaseback

    1. Lease terms: Dealers must ensure that their interests and that of the landlord are aligned. Our strategy is to buy and hold real estate, unlike private equity firms or unknown private investors who look to ‘flip’ their portfolio for a quick profit. CapRocq will secure dealers with a long-term lease (generally 15+ years) with a rent factor at fixed and variable rates that the dealership can support.

    2. Landlord/buyer: Choose your landlord/buyer carefully. CapRocq’s strategic partnership with W. P. Carey provides the most experienced sale-leaseback team in the U.S. CapRocq manages a growing portfolio of existing dealership real estate and its founder is a fourth-generation automotive executive. CapRocq is 100% owned by its Founders.

    3. Traditional mortgage financing: Unlike a sale-leaseback, traditional mortgage financing only monetizes partial equity in your real estate. As a general rule, we do not require personal guarantees, unlike traditional forms of financing. Uncertainty in the banking world today and increasing regulation does not provide long-term predictability or an assured partner for future growth.