FAQ

Q. What is your approval process?

A. Our goal is to have a decision for you within 5-7 business days after receiving the information we request from you. We work directly with you to create a transaction that will work for your business and provide you with a prompt decision.

Q. How quickly can you close ?

A. We are an all-cash buyer so we can be ready to close your transaction quickly.  We can complete your transaction within 60 days of receiving a signed Letter of Intent and, in many cases, we can and will close sooner to meet your specific time frame.

Q. Will STORE Capital provide construction financing?

A. Yes, we have many tailored programs that can assist our customers who are looking to grow their business through new builds, expand a particular outperforming location or renovate an existing vacant property.

Q. What transaction size is too small/large?

A. The management team at STORE Capital has supplied more than $15 billion in real estate mortgage and lease solutions to customers across the U.S., including transactions of all sizes.  At STORE Capital, we generally see transactions in sizes ranging from $1 million to over $100 million and will consider any other size of opportunity you may bring.

Q. What's your Cap Rate ?

A. Like our solutions, our cap rates are tailored to each transaction.  Our goal is to make our customers better off for doing business with us.  With some specific information from you on your business, we can show you how we can make the math work for you.

Q. Does STORE Capital provide mortgage financing?

A. Yes, we can provide mortgage financing as a part of a tailored financing solution that best fits your long-term goals. As an example, our Hybrid Lease / Mortgage product provides up to 100% financing with favorable tax treatment.

Q. Will STORE Capital provide a construction loan for a developer?

A. STORE will provide construction type financing when we are in an ownership position of the fee simple interest of a property.

Q. What is STORE Capital's financing concept?

A. Our model is relatively simple — we are a specialty finance company whose main goal is to increase our customer’s shareholder wealth.  Our solutions lead to you having increased cash flow with less equity tied up in your business, and higher returns on your equity.

Q. What are some advantages to leasing vs. owning property?

A. Lease capital is a substitute for both debt and equity.  A sale-leaseback allows you to tap into unused equity that is trapped in your real estate and generate higher returns by putting it back into your business to:

  • Develop or acquire additional locations
  • Renovate existing locations
  • Diversify and use that cash for other investments or personal use
Q. What are advantages of a sale-leaseback vs. debt?

A. The decision to lease or own real estate depends on the percentage of financing available in the debt markets, and the financing terms lenders are requiring. Currently, 70% financing from lenders and burdensome covenants are commonplace.  Since sale-leasebacks are a substitute for both debt and equity, this allows you to conserve or re-deploy valuable equity capital.  Additionally, lease capital will have lower payment constants and won’t have any covenants.  Plus, you won’t be subject to interest rate risk, refinance risk, and prepayment risk that comes from shorter term debt financing. Leasing real estate allows you to:

  • Conserve or re-deploy valuable equity capital
  • Lock in a long-term, profitable capital structure
  • Reduce your payment constant (as a percentage of amount financed) relative to other financing sources

Q. What are Master Funding Solutions?

A. Master Funding Solutions is an innovative financing concept created by STORE Capital.  It allows STORE to pass on operational flexibility to you.  This effectively makes our capital:

  • Act like a partial equity substitute on the upside
  • Behave like opportunity cost insurance on the downside
  • Contain the potential to increase your cash flow without equity dilution