Our acquisition and subsequent leaseback
of the Wyndham Hotels in Billerica, Mass.
Consensus: The EITF decided executory costs of the leaseback
should be excluded from the calculation of profit to be deferred on a sale-leaseback
transaction irrespective of who pays the executory costs or the classification of the leaseback
93-8, Accounting for the Sale and Leaseback
of an Asset That Is Leased to Another Party, addresses the accounting by a seller-lessee for a sale-leaseback
of personal property when
Both owned and ground-leased properties may be eligible for sale/ leaseback
, even before construction is complete, and properties may be sold individually or combined in a portfolio and structured as either a private placement or a 144A public offering.
Treatment of Disqualified Leasebacks
and Long-Term Agreements
Thus, the proposed regulations would limit the application of rent-leveling to disqualified leasebacks
or long-term arrangements (discussed below).
Every year we've done more and more sale leasebacks
to any person who had an interest in the property within two years of the leaseback
), or if the agreement is a tax-motivated "long-term lease agreement" (i.
These special rules apply if the agreement is tax motivated and is either a disqualified leaseback
to any person who had an interest in the property within the previous two years) or a long-term lease agreement (one with a lease term longer than 75% of the leased property's statutory recovery period).
Market conditions are very favorable for tenants looking to sublease their space and those owners who are looking to raise capital through a sale and leaseback
of their facilities.
The perception was that sale leasebacks
were for weak companies that needed to raise cash in a hurry.
While sale leasebacks
have been around since the 1940s, the shortage of all types of real estate investments has brought renewed attention to viable sale leaseback