Retail acquisitions using master lease / lease-to-own structures — broker perspective

Retail acquisitions using master lease / lease-to-own structures — broker perspective

Investor · Brooklyn, NY · Member since 2018 · 57 posts · 25 votes

Curious to hear broker and principal perspectives on structured acquisitions in the commercial retail space.

In some transactions where buyer and seller are aligned on price, I’ve seen deals close using master lease or lease-to-own structures — essentially where the buyer operates the property and makes agreed payments while the purchase price and exit are locked upfront. These are often used to bridge timing, capital markets, or tax considerations, with broker commissions fully protected.

For those who’ve been involved in these types of retail deals, what tends to make them workable vs. difficult from a brokerage and seller standpoint? And are there particular seller profiles or retail assets where you’ve seen this structure work best?

Appreciate any insight — always helpful to hear from those with hands-on experience executing these.

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  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    8mo

    @Naqi Taylor I've not worked on a deal exactly as you describe, but from a new tenant standpoint what you are describing sounds like quite a bit of complication to any new lease up that would happen in the center while that arrangement was on going. Unless I'm missing something perhaps. 

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