Orange County, CA (September 24, 2024) |
CUinfluential, the credit union industry’s premier collaborative business influencer, is pleased to announce the publication of our latest white paper, “Turning Brick and Mortar into Gold.”
In this comprehensive and informative study we introduce the CUSO, CU Capital Management, the first Promotion Partner of NACUSO Business Services, a wholly-owned subsidiary of NACUSO, as the industry’s valued provider of opportunities for raising capital and liquidity, opportunities for permissible CUSO investments, and opportunities for direct lending and loan participations through the power of sale-leaseback transactions.
“Capital is king. There can never be enough of it. In an unpredictable operating environment, credit unions need reliable access to capital without the long-drawn-out time required to organically grow deposits and increase loans and investments to generate more net income and raise capital. Alternatively, credit unions can’t always meet the restrictions and repayment requirements associated with raising secondary capital, a formerly attractive option that has become increasingly expensive and cumbersome. So where can credit unions find needed capital and quickly? For those credit unions that own operational real estate, the answer lies in a sale-leaseback of those assets with CU Capital Management’s CUSO Network.”
First popularized by Bank of America’s 1985 sale and leaseback of its San Francisco headquarters building in an extraordinarily successful transaction that raised over $600 million in new capital for the bank with no disruption in occupancy or operations, sale-leasebacks have become popular capital raising strategies for financial institutions that own appreciated real estate. Today, sale-leasebacks provide credit unions with capital to reinvest in core business operations and growth initiatives while maintaining operational control of real estate with no disruption in day-to-day operations.
Recent changes in accounting rules around sale-leasebacks now provide credit unions with the ability to immediately realize the net income and capital from a sale-leaseback transaction. While there are multiple private funding sources for arranging sale-leaseback transactions, CU Capital Management offers the only CUSO based solution. A selling credit union will have a long-term leasing relationship with a CUSO funded by other credit unions and managed by credit union colleagues and not with private fund managers who typically sell the lease to unknown investors.
“Turning Brick and Mortar into Gold” includes current case studies and is a must-read for all credit unions that own operational real estate. The complete, free white paper can be downloaded directly from CU Capital Management by clicking HERE.