Model selling your commercial real estate to an investor while leasing it back. See your net proceeds, ongoing lease cost, 10-year wealth comparison, and whether a sale-leaseback makes more financial sense than continued ownership.
Your property & business details
Sale-leaseback turns illiquid real estate equity into working capital while keeping you in your location.
Lease terms
NNN = you pay base rent + taxes + insurance + maintenance
To assess whether the lease is affordable
Net Proceeds at Sale
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10-Year Verdict
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Total tax on sale
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Recapture + cap gains
Investable proceeds
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After tax and payoff
Total lease cost over term
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Cumulative payments
Lease as % of EBITDA
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Affordability check
10-Year Wealth Comparison
Net proceeds at sale
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Less: cumulative lease payments (10 yr)
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Plus: investment growth on proceeds
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Sale-leaseback net position (10 yr)
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Property value if held (10 yr)
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Less: continued mortgage payments (10 yr)
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Hold net position (10 yr)
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Better option over 10 years
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Model a 1031 exchange instead. Defer the tax entirely by exchanging into a different property.