sale-leaseback

Definition

A transaction where the property owner sells to an investor then immediately leases it back, converting ownership to rental while extracting equity. Corporate real estate's way of having your cake, selling it, then renting it back to eat it anyway.

Example Usage

The restaurant chain used sale-leaseback transactions to raise capital while maintaining operations in their existing locations.

Origin

Corporate finance strategy popularized in the mid-20th century

Fun Fact

Major retailers like CVS and Walgreens have used sale-leasebacks to raise billions, effectively treating their real estate as a hidden piggy bank.

Source: Commercial real estate investment structure standards

Related Terms

Advanced

gift of equity

When a seller (usually a family member) sells a property below market value and treats the difference as a down payment gift. It's nepotism in real estate form, and the IRS has feelings about it.

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riparian rights

Property rights of landowners whose property borders rivers or streams, governing water use and access. The reason your creek-front property doesn't mean you own the water or can dam it up.

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redlining

The discriminatory practice of denying services (especially loans) to residents of certain areas based on racial or ethnic composition. The shameful legacy that shaped American cities and whose effects persist decades after being outlawed.

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Good Bones

Real estate code for "the house is ugly, possibly condemned, but the foundation hasn't crumbled yet, so there's hope." It's the property equivalent of saying someone has a great personality.

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alienation clause

A mortgage provision requiring full loan repayment if the property is sold or transferred, effectively preventing you from passing your sweet 3% interest rate to the next owner. Also known as a 'due-on-sale clause' for those who prefer their contract language less sci-fi sounding.

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appraise

To slap a monetary value on something, ideally by someone qualified to do so rather than your overly optimistic uncle. This formal evaluation process determines the worth of assets, employee performance, or really anything that can be judged and assigned a number. Real estate agents love this word because it sounds more professional than 'guessing what someone will pay.'

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imvho

in my very humble opinion...