Property Management

What is a 'sale-leaseback' in Delaware commercial real estate?

AA tenant buys the landlord's property and immediately leases it back to the landlord
BA property owner sells the property and simultaneously leases it back from the new owner✓ Correct
CA developer sells condos and leases the commercial units
DA bank forecloses and leases the property back to the original owner

Explanation

In a sale-leaseback, the owner sells the property and simultaneously enters a long-term lease to remain as a tenant. This allows the original owner to unlock equity while retaining use and possession of the property.

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