The Financial Accounting Standards Board is moving closer to a solid position regarding the consolidation of special purpose entities, and as the revised regulations threaten to completely evaporate synthetic lease activity, many market players are preparing for a deluge of diverted deal flow to swell the banks of the traditional sale/leaseback market.

"We're seeing an increase in potential deal flow involving companies exploring the option of a tried-and-true sale/leaseback to replace or refinance synthetic leases," said Sean Sovak, managing director and chief acquisitions officer at New York-based real estate investment banking firm W.P. Cary & Co. "I think that we'll see more of that toward year end."

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.