Our focus, as a company, is business development and strategic positioning. We are solution providers, and we work with both the buy and the sell side of a transaction. Our role is in business facilitation, matching opportunities with access for both buyers and sellers in many industries and sectors of the world’s economy.

C4 is in need of securing a Partner or Partners to work with us to provide financing for commercial real estate.  

Ours is a niche opportunity that exists in the US and abroad.  Would you consider Partnering with us to supply and/or secure the securitized capital that’s needed?  Our estimate of the initial market is $275 Million (€ 204.5 Million) per month._*

The product is called: A Structured Purchase Lease

In the Quick Links menu on the right, you can view or download our PowerPoint Show or select from our list of literature.

In order to understand and appreciate the flexibility of an SPL transaction one must first acknowledge or have an understanding of a Sale Leaseback transaction. 

Briefly, a Sale Leaseback is where the owner of a piece of property, in this case we’ll say it’s a strip mall, decides to sell the property but leases it back from the new owners.  This was done because of the need for cash but the desire to continue using the property and receive the benefits afforded from the cash flow that is generated by the property.

An SPL transaction is very similar but yet different.  In an SPL transaction, the owner:

• Agrees to sell the improvements (everything but the land) to the purchaser (C4)

• Agrees to pledge the land that is now has a free and clear title as security in the transaction

• Pays a fixed rate (monthly payment) for the entire term of the transaction

• Understands that at the end of the transaction, when the lease is retired, the property reverts back to the owner. 

Note: In the U.S. (and many other nations), when any lease for buildings expires on property owned by someone, all buildings and improvements revert back to the owner of the land.

• Allows for more cash to the original owner than a second, a new mortgage or a sale leaseback transaction.

• The fixed lease rate becomes an operating lease for the original owner and therefore fully expenses at the appropriate tax rate of the original owner.

• Once the building or above ground assets are removed from the balance sheet, the company’s cash position and their ability to leverage improves with other lenders.

An SPL transaction from the source of capital perspective:

1. The source of capital to receive a consistent return on the money invested and secured by commercial real estate titles.

2. The risk of the company going BK or the necessity of foreclosure is an insurable event with a declining amount of insurance over the first three years of the lease.  In addition, each traunch will have between 5 to 8 or more transactions.  If any one transactional obligation is not met, the arbitrage of Payment vs. Cost on each of the other transactions will easily meet the ongoing repayment to the source of capital (insuring the return of capital and interest).  It reduces profit to C4 without jeopardizing the repayment of capital used.

3. Any foreclosure of the company after the 3^rd year is a win because the market value of the real estate is now much greater than the cost of money used to originally secure the investment.

4. Greater protection for the source of capital because all transactions are within a $25 million traunch with no single transaction being greater than 40% ($10 million) of the total traunch.

From March of 2006 to December 2006 (Test Marketing) we found slightly more than $2 Billion worth of commercial property that would qualify for this type of transaction.  That was our initial test of the market.  To be clear, no transactions were completed or have been completed. 

It has been reviewed by the S.E.C. and F.A.S.B. as well as our financial advisers.

*Our goal is to market this in 10 major U.S. and 1 large European market.  The initial goal of each office would be to complete a $25 million traunch per month.  Ultimately achieving much more per month. Each office and its marketing staff would be part of C4.  Our fees are all generated from the client company.  From the time the transaction enters Escrow, additional fees can be earned by a Partner or Partners with C4.

Would you like to discuss this further?  Our contact information can be found here or you can email us by clicking here.

 C4 is looking for capital to secure commerical real estate *** C4 sees a market that is $275 million per month in the U.S. *** Safe, secure, consistent above average return on investment *** The Structured Purchase Lease