Sale/Lease Back Performance Contracts

Description:

Due to mechanical costs, Terrus researched the opportunities to create substantial savings for the Client's operating expenses. Through an in-depth look, Terrus assisted in the sale of an HVAC (Heating, Ventilation, Air Conditioning) system back to the mechanical company who then leased it back to the Client until they eventually owned the system again.

Terrus' Role:

Terrus researched the costs, recommended a sale/lease back as the best option, and proceeded to write and negotiate the contract for the Client.

Advantages:

Customer saves money because there is no risk of repair costs.
Customer has a fixed utility rate during the contract.
HVAC becomes an expense versus a Capital item therefore removing it from the Balance Sheet and increasing the return on asset ratio.

Savings:

Average cost when owned by user-$3.50/sf
Average cost after implemented contract-$1.42/sf
Overall savings-$810,000 over 15 years