$23.5M Sale Leaseback of Lifted Trucks Dealerships to Support Growth

Introduction

Ascension Advisory successfully completed a two-property sale leaseback transaction on behalf of Lifted Trucks, a prominent dealer and upfitter specializing in trucks and Jeeps. With multiple dealership locations, including two in the Dallas-Fort Worth area, Lifted Trucks recognized an opportunity to monetize its real estate assets. The sale leaseback allowed the company to optimize capital allocation by redirecting funds to reinvest in expanding its dealership network and operations, further enhancing brand reach and market presence.

Client Objective

The company sought to unlock the value of its owned dealership properties to free up capital for strategic growth initiatives. By partnering with Ascension, the client was confident they would maximize proceeds through a competitive sale leaseback process, leveraging Ascension’s automotive industry expertise and investor network focused on this asset class. The objective was to secure capital while maintaining operational continuity through long-term lease arrangements at their two dealership sites.

Solution

Ascension Advisory conducted a targeted investor outreach campaign, connecting with sale leaseback investors specializing in automotive real estate. The team’s process generated multiple competitive offers, ultimately leading to an agreement with a sophisticated REIT with a focus on sale leasebacks and significant experience in the automotive sector. Ascension structured a long-term, triple-net (NNN) lease with annual rent escalations, ensuring limited maintenance obligations for the buyer while granting Lifted Trucks operational control of the premises. This structure aligned with the client’s goals of long-term stability, capital generation, and operational flexibility for future investments.

Conclusion

The successful sale leaseback transaction provided Lifted Trucks with accretive capital to reinvest in its core operations, supporting future growth and expansion initiatives. Ascension Advisory's expertise and tailored approach ensured a swift closing within the client’s desired timeframe, delivering an outcome that strengthened both the financial and operational position of Lifted Trucks while providing the real estate investor with two high-quality, income-generating assets.