§ 20A.09 Conclusion

• Jurisdiction: United States
• Publication year: 2022

§ 20A.09 Conclusion

A net lease sale-leaseback deal is not merely a lease transaction following a property sale. These are complex deals that have certain characteristics of secured financing transactions, other characteristics similar to a typical commercial sale transaction plus a lease deal, and still other characteristics that are unique to the sale-leaseback structure. Understanding the ways in which these deals are similar to, and different from, mortgage-financing transactions can be critical in counseling a client (whether a potential capital provider or property owner) in connection with the decision to structure a given deal as a net lease sale-leaseback or a mortgage financing transaction. If a client does decide to enter into a net lease sale-leaseback deal, the terms of the related lease will also reflect both typical commercial lease provisions and clauses more typical in mortgage financing...