Ascension Advisory completed the sale leaseback of Basic Environmental Group’s industrial headquarters and operating facility in Houston, Texas.
By monetizing its owned real estate, Basic Environmental Group generated capital to pay down debt and reinvest in the business, while continuing to operate from the facility under a new long-term lease agreement.
Transaction Approach
Ascension structured and executed the sale leaseback of the company’s 31,900-square-foot industrial facility. The property serves as Basic Environmental Group’s sole operating facility and is mission-critical to its business, supporting equipment storage, project staging, crew dispatch, emergency response and environmental remediation activities.
Ascension coordinated the transaction process and managed multiple workstreams to ensure an efficient closing. Its investor outreach highlighted the company’s established operating history, blue-chip customer relationships, zero-accident safety record, specialized environmental certifications and approximately $2.4 million invested in the property.
The property was acquired by a private buyer under a new long-term, absolute triple-net lease with annual rent increases. This structure allows Basic Environmental Group to retain operational control of the facility while providing the buyer with stable, long-term cash flow and a passive real estate investment.
Outcome
The sale leaseback allowed Basic Environmental Group to convert equity held in its real estate into capital that will be used to pay down debt and reinvest in the business, while preserving uninterrupted use of its strategic headquarters and operating facility.
The private buyer was very pleased with the outcome and the opportunity to acquire a mission-critical industrial property backed by a long-term lease with contractual annual rent increases.
The transaction demonstrates how Ascension Advisory helps companies unlock capital tied up in owned real estate through structured sale leaseback transactions, generating liquidity for debt reduction and business reinvestment while maintaining operational continuity.