Neyer Properties, one of the largest commercial developers in greater Cincinnati and Northern Kentucky, has implemented an innovative way to expand its rental real estate holdings.
Neyer buys select buildings, then leases them back to the existing owner, who then becomes a Neyer “tenant.”
The company, which purchased 500,000 square feet of space in 2007, expects to double this amount to total one million feet of space in 2008 by purchasing $50 million in properties in 2008.
Neyer Properties has implemented its “sales-lease back” program to invest in quality real estate and for business owners to capture the equity in their buildings to expand their ongoing businesses.
“There are lots of opportunities in real estate, and they change constantly,” said Dan Neyer, president of Neyer Properties, Inc. “Our typical client for this program is a private business which has owned and invested in its property over the past 5 to 20 years.”
Neyer is looking primarily for single-tenant buildings.
He said some of the many reasons for a business owner to consider the sale-lease back program are:
• It frees up appreciated real estate equity for companies to re-invest in their businesses;
• It reduces time and expenses associated with maintaining the building;
• Lease payments are fully tax-deductible;
• The building is professionally maintained and managed by Neyer to insure correct functionality of the building and to take advantage of advancements in new technology;
• Leasing allows startups and fast-growing companies the ability to expand quickly.
Neyer stressed that he’s looking for businesses with a successful track record, for that’s the kind of tenant who will stay in the building for years to come.
“Clients manage, maintain and operate their businesses as they always have,” he said. “The only thing that has changed is that we own the building. As a landlord we meet with our tenants once a year, discuss any future opportunities and the state of ongoing business as usual.”
For more information on the sales-lease back program, contact Dan Neyer at (513) 515-0615 or call the Neyer Properties, Inc. office at (513) 563-7555.