See leasehold .
Example: Collins owns land and wants to raise cash to build a shopping center on it. She sells the land for $1,000,000 to Baker and leases it back for 50 years at a $50,000 annual rent. Collins can use the land for the lease term provided she pays the annual rent, so she builds the shopping center after the land sale-leaseback (Figure 110). The reduced equity requirement (reduced by $1,000,000), combined with taxdeductible land rent, can serve to elevate the after - tax equity yield.
FIG. 110. LAND SALE-LEASEBACK
| Land Residualtechnique, Land Lease Community | |
| Land Use Controls or Regulations, Land Use Intensity |
