CUinfluential announces new white paper, “Turning Brick and Mortar into Gold”
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.
About CUinfluential
CUinfluential is a corporate communications firm dedicated to enhancing the strength of the credit union industry by accelerating collaborative growth among credit unions, CUSOs and small business. Mike Hales, CUinfluential’s founder, served on the board of directors of NACUSO for 18 years, was president CUSOs Counter Intelligence Associates and Small Business America, EVP with CUSO CU Revest, and is a veteran bank and credit union consultant. He is a graduate of Lincoln University Law School, the ABA School of Bank Marketing Management and Strategic Planning at the University of Georgia, and the NACUSO Designing and Implementing Collaboration and Business Networks certificate program at Pepperdine University. For more information, please visit https://www.cuinfluential.com.
About CU Capital Management
CU Capital Management is a CUSO that was created alongside credit unions and credit union industry experts to bring unique capital and asset opportunities to credit unions. CU Capital Management manages a network of CUSOs focused exclusively on sale leasebacks for credit unions including opportunities for credit unions to participate as sellers/lessees, as investors and/or as lenders. CU Capital Management’s unique sale-leaseback model utilizes a network of CUSOs to allow credit unions the opportunity to receive attractive, risk-adjusted returns through participation in the equity and/or debt components of sale-leaseback transactions by other credit unions and keeps all of the benefits of sale-leasebacks within the credit union industry. For more information, please visit https://www.cucapitalmanagement.com.
