Definition of "Land sale-leaseback"

The selling of a parcel of land whereby the original owner agrees to immediately leaseback the property. The advantage of the land sale-leaseback in that the original property owner can realize the capital value of the property while still retaining its use. For example, John wants to acquire another commercial piece of property. He agrees to a land sale-leaseback of the land upon which his office building is constructed. He sells the property to Jack agreeing to make rental payments to the new owner while still occupying the office building. Realizing the capital value of the land, he is now able to acquire the second piece of commercial property.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

A public area, or plaza with a series of walkways permitting pedestrians easy access to shops, stores and restaurants. Modern malls are often enclosed enabling all weather access. Malls are ...

In land surveying, the point al which two properties intersect constituting a boundary line between the properties. A corner can be determined by either a survey or general agreement ...

Those parts of a condominium that are owned by all the unit owners. ...

A passive house is a construction that has limited to zero carbon footprint. These kinds of houses have been developed as an answer for the necessity to lower pollution for the benefit of ...

The right to demand that title be conveyed upon payment of the purchase price. ...

Right to select something or perform some act. An example is a renter of property that is given the option to buy the home at the end of the rental period or to renew the lease. Not ...

Covering on the top exterior of a window. ...

Group of investors pooling their money to purchase real estate. ...

Real property located in an excellent area for its designated objective. An example is a restaurant situated near office buildings, on the main boulevard, so it is easy to see, and has ...

Popular Real Estate Questions