Real Estate: Sale Leaseback

A Sale/Leaseback transaction in real estate typically means someone sells a property but then immediately leases it back from the new owner.   This may give a private investor or even an institutional investor the opportunity to purchase a property but not actually participate in the operation of a business on that property.  It guarantees that the newly purchased property does not sit empty and a tenant is already in place, often for 20 to 30 years.  This guarantees investment value to the buyer and as well as helping the seller know they can depend on the lease site for an extended time.  It can give the business owner a chance to reduce his investment in the actual property in favor of taking that money and investing in the continued success or even expansion of his business.   

Although the concept may not be complicated (The seller will stay in the building and rent the premises from the new owner), the basic purpose is straightforward and is a way to use a real estate asset to help provide benefits to both parties. 

Whether you are interested in the investment opportunity as a new owner, or as a current business owner looking for a chance to sell your property and lease it back from the new owner, you need an attorney to make sure the transaction moves forward protecting your interests.