ground lease

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Ground lease

A lease of land, as opposed to a lease of a building.

Ground Lease

A lease of real estate. A ground lease differs from other types of leases, such as those where one rents an apartment or a factory. Generally speaking, one may use a ground lease to occupy a piece of land and make improvements to it. For example, one may build an office on the land. Ground leases are important to some investment vehicles in Islamic finance, notably sukuk al-ijara.

ground lease

A long-term lease of land in which the tenant will erect improvements at its own expense. Not a desirable arrangement from the tenant's point of view, but sometimes the only way to gain access to extremely valuable real estate in an excellent location.The owner may be unwilling to sell,or the owner may have received the property by gift or deed (such as a church or university) and be prohibited from selling for some period of time. At the end of the lease term, the improvements become the property of the landowner.

References in periodicals archive ?
How liquidating a ground lease can serve both immediate and long term financial needs and objectives
This block-long parcel, located in the heart of NoHo, is one of the last prime development sites in Manhattan's most cutting-edge neighborhood," said Richard Baxter, vice chairman at JLL who structured the 49-year ground lease at 363 Lafayette Street for Olmstead along with Stephen Shapiro, an executive vice president at the brokerage.
Cap rates for bank ground lease properties reached a new historic low
Client wants a ground lease close to the construction and operation of 50 beach huts.
Wouldn't this be insurable interest in order to cover the loss of ground lease income?
This article presents a case study analysis of an office building that is encumbered by an above-market ground lease payment and restrictions on ownership.
One critical element is that the ground lease be financeable by the developer's lender.
Under a ground lease, a business leases vacant land (often called "dirt") from a property owner, constructs its own building, and pays for all of the costs of operation, including taxes, insurance, snow removal and landscaping.
The transaction's asset pool is composed of a participation right in the form of fixed-amount claims against the rent collections under four ground lease agreements where the underlying properties are four plots of land located in Taipei City's Xinyi District.
Warwick District Council played an important part by extending the ground lease to make it worthwhile for both parties.
The ALI-ABA (Philadelphia, PA) has released 'A Guide to Ground Leases (with forms and checklists),' a new book that addresses the terms and issues that arise in negotiating a ground lease "in a way that meets the landlord's expectations and prevents surprises for the tenant," the ALI-ABA said.
Under the plan approved last week, developers would pay the CRA and the county more than $110 million in ground lease and incentive rent payments over the three phases of construction.