In one sentence
A transaction where an owner-occupant sells its property and simultaneously leases it back, converting owned real estate into a long-term lease.
The longer version
In a sale-leaseback, a company sells the real estate it operates from and signs a long-term lease to stay, freeing capital while retaining use. The buyer gets a property with a built-in credit tenant.
Financing a sale-leaseback centers on the lease and the tenant's credit, since the lease is effectively the asset's income and the source of loan repayment.
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