Trustworthy Operators
Simply put, it allows an operator to sell an asset to an investor and the investor, in turn, to lease the asset back to the operator at an agreed-upon rate and lease term.
We perform sale-leasebacks because we want to focus on increasing our cash flow; to focus on expanding the business instead of real estate.
Why sale-leaseback?
Proven businesses that have stood the test of time
Stores in our portfolio were acquired under stringent due diligence standards, a long drawn out process factoring in building/lot size, inside/outside margins, COGS, traffic counts, current + future competition, staffing feasibility, etc. We only use businesses that we are confident will continue to succeed on a unit level instead of asking investors to simply rely on the overall store count or guaranty.
Healthy EBITDA-Rent ratios
We set up our deals so that the business can survive long-term and not be hampered by untenable rent amounts. We care about the ratio and because we do we create win-win situations with our investors where we take home healthy net profits and their asset value is protected long-term.
Adapting to the trends
Unlike many gas stations that rely on outside volume based on volatile gas prices, we focus on inside the store by building and maintaining strong food programs that embrace our target customers. By focusing on the high margin products we keep our eyes on maximizing profitability.
Buy into a growing story
Unlike other operators who have different reasons for performing sale-leasebacks such as buying partners out, paying off debt, etc. Pinnacle is solely focused on using unlocked capital towards expansion projects, building and buying new businesses which in turn increases their unit count and results in more attractive credit worthiness.
Flexibility with a buy back option
To give investors increased flexibility we offer a buy back option that essentially forces us to buy back the asset that was already leased back within a certain amount of time at a predetermined pricing formula if the investor needs liquidity or identifies a more lucrative opportunity- for any reason. Details are negotiated in the PSA on a deal by deal basis.
