USRA is focused on the acquisition and ownership of single-tenant, net leased properties.
USRA’s investment strategy and acquisition criteria:
- Property Type: Office, Distribution, Retail, Restaurants, Media/Entertainment, Medical Office, Assisted Care, Lodging and Hotels.
- Tenants: Companies, governments and not-for-profit institutions.
- Tenant Credit: AAA through sub-investment grade and unrated.
- Lease Structure: Master lease of 100% of property, double-net, triple-net or bondable.
- Term: Minimum 10 years of remaining lease term.
- Transaction Size: $10 million minimum and no maximum.
- Geographical Area: Nationwide.
USRA provides build-to-suit funding for a prospective tenant interested in constructing new properties or expanding existing properties. Based on a long-term tenant lease, USRA works with developers to provide funding during construction and/or forward commitments to purchase at completion.
A tenant leasing a building may find that the existing lease does not allow its future needs in the building to be met. The existing landlord may be financially stressed or may be unresponsive to the tenant’s expansion requirements. USRA is often approached by such tenants or their advisors to purchase the building from the current ownership and enter into a new long-term lease with the tenant. This typically requires addressing a range of financial, real estate, tax and other issues to arrive at a solution that works for all parties. The new lease will reflect the tenant’s future requirements in the building, often at a more attractive occupancy cost.
Net Lease Aquisition
USRA purchases existing single-tenant net lease properties with remaining lease term of ten years or longer.
USRA works with a current or prospective tenant to renovate or expand an existing facility. USRA provides the funds necessary to cover the hard and soft costs associated with the renovation and the tenant signs a new long-term lease for the property.
USRA is a leading provider of sale-leaseback transactions purchasing real estate assets from the owner-occupant and entering into a long-term lease back to the occupant. Sale-leaseback transactions enable a company, government or not-for-profit to free-up capital by monetizing a non-earning asset while maintaining operational flexibility and long-term control over the property. The sale proceeds then can be used without restriction by the seller in its core activities, to pay down debt, etc.
Tenant benefits from a sale-leaseback transaction include:
- Convert a non-earning asset to 100% unrestricted cash
- Achieve rental costs below the cost of a company’s weighted average cost of capital and below traditional real estate market rents
- Keep the asset off-balance sheet and avoiding depreciation charges on the income statement
- Permit ownership-type operational flexibility and long-term control over the property through renewal options
- Shift real estate risk, with the right to walk away at the end of the lease term
Companies, governments and not-for-profits have unique requirements that often can be met by utilizing real estate assets. USRA is renowned for its ability to structure highly efficient, real estate-based transactions that provide targeted financial, tax, accounting, regulatory and other solutions.