Alpha Real Estate Advisors Facilitates $4M Sale-Leaseback for Eclipse Creative, Boosting Liquidity Post-COVID

Alpha Real Estate Advisors successfully completed a $4million sale-leaseback transaction for Eclipse Creative, a pioneer in grand format 3D printing and creative design, for their industrial flex facility located at 825 Taylor Road, Gahanna, OH. This strategic transaction has significantly enhanced Eclipse Creative’s liquidity position, enabling the company to navigate post-COVID economic challenges and fuel future growth.

Strategic Sale-Leaseback Unlocks Capital for Growth

Eclipse Creative, a Columbus-based innovator in large format graphics, creative design, and custom sign fabrication, originally purchased their 825 Taylor Road facility for $1.6 million. Facing the economic uncertainties brought on by the COVID-19 pandemic, Eclipse sought to unlock capital tied up in their real estate to strengthen their financial position and support operational expansion. Alpha Real Estate Advisors stepped in to deliver a tailored solution through a sale-leaseback transaction, securing a buyer willing to pay close to $4 million—more than double the original acquisition price.

This transaction allowed Eclipse Creative to convert their real estate asset into immediate liquidity while continuing operations at their existing facility under a long-term lease. The influx of nearly $4 million in capital has positioned Eclipse to pay down variable interest debt, explore headquarters expansion, and hire additional talent to expand their service lines into lucrative conference booth manufacturing and storage, all without disrupting their business operations or brand presence in the thriving Columbus market.

“We had a great experience with Braden and his team. Their knowledge and help on our sale leaseback was top notch. Their customer service was over the top. When I or anyone on our team called they always answered even though we were 3 hours apart. Great experience and highly recommend them” said the Owner/Chairman of Eclipse Creative.

The Power of Sale-Leasebacks for Business Owners

A sale-leaseback is a strategic financial tool where a company sells its property to an investor and leases it back to continue operations, typically under an Absolute NNN (triple net) lease. This structure offers business owners a compelling alternative to traditional debt or equity financing, providing immediate capital without operational disruption or loss of control. For Eclipse Creative, the sale-leaseback offered several key benefits, which are broadly applicable to business owners seeking financial flexibility:

1. Immediate Capital Access: The sale provided Eclipse with a $4 million lump sum, offering rapid liquidity to address post-COVID challenges, fund expansion, and reduce debt. Unlike loans, which often cap at 70% of property value with stringent terms, or dilutive equity raises, which depend on market conditions, a sale-leaseback delivers a higher price, 100% of the full property value in cash. Working with Alpha this can be accomplished quickly and efficiently.
2. Operational Continuity: By leasing back the Taylor Road facility, Eclipse maintained its established location, preserving customer relationships and brand presence. This stability is critical for businesses like Eclipse, where location supports operational efficiency and market visibility.
3. Fixed Cost Predictability: The long-term lease agreement provides Eclipse with fixed rental payments, simplifying budgeting compared to the variable costs of property ownership, such as maintenance and taxes. This predictability contrasts with debt’s fluctuating interest rates or equity’s dividend expectations, offering financial clarity.
4. Management Relief: Transferring property ownership to the landlord alleviated Eclipse from the burdens of property price volatility and the comparatively lower return on investment when considering higher ROI opportunities presented by their business ventures. This allowed leadership to focus on core business activities like innovation and growth of their new service lines. This operational efficiency is a unique advantage over debt or equity financing, which often retain property exposure.
5. Balance Sheet Enhancement: The sale-leaseback improved Eclipse’s financial position by replacing a fixed asset with liquid capital, enhancing their ability to invest in new opportunities without the constraints of debt covenants or equity dilution.

Alpha’s Expertise Drives Exceptional Outcomes

Alpha Real Estate Advisors leveraged their deep market knowledge and innovative approach to identify a 1031 exchange investor procured by Alpha’s proprietary data base of over 100,000 investors. This investor was willing to pay nearly $4 million for the Taylor Road facility at a record price per square foot for the region, capitalizing on Columbus’s status as one of the nation’s fastest-growing metropolitan areas. The Alpha team, led by industry veterans Braden Crockett and Steve Kalyk, navigated the complexities of the transaction with precision, ensuring a seamless process from start to finish. Their ability to secure a buyer at more than double Eclipse’s original purchase price underscores Alpha’s expertise in uncovering premium investment opportunities and delivering maximum value for clients.

“Eclipse Creative’s sale-leaseback is a testament to the power of strategic real estate solutions in unlocking value for businesses, ”said Braden Crockett of Alpha Real Estate Advisors. “By understanding Eclipse’s goals and leveraging our market insights, we delivered a transformative outcome that strengthened their financial foundation while preserving operational continuity. We’re proud to partner with innovative companies like Eclipse in the dynamic Columbus market.”

A Win-Win for Business Owners and Investors

The sale-leaseback of Eclipse Creative’s Taylor Road facility highlights the dual benefits of this strategy: business owners gain liquidity and operational stability, while investors acquire a high-quality asset with a reliable tenant on a long-term lease. For Eclipse, the nearly $4million infusion provided the flexibility to thrive in a post-COVID economy, while the investor secured a stable, income-generating property in ahigh-growth market.

Alpha Real Estate Advisors continues to redefine commercial real estate success through innovative solutions and client-focused service. For business owners seeking to unlock capital, streamline operations, or explore investment opportunities, Alpha’s team of experts stands ready to deliver tailored strategies that drive results.

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