"After understanding what Mr Friedlander was seeking to accomplish, we concluded it was in his best interest to structure a long-term ground lease
to generate a steady income from a lease deal rather than sell the properties today," said Ferrara.
The Ground Leases
, situated on 10.45 acres, all have rent escalations during the initial term, most of which are every five years, and have a weighted-average remaining term of approximately 15 years.
Real estate appraisers are often involved in the valuation of real property interests subject to a ground lease
. However, appraisers are less frequently involved in the structuring or negotiation of the ground lease
, and therefore they may be less familiar with some of the provisions in modern ground leases
that impact the valuation of the leased fee interest.
With today's ground leases
, a landowner leases the land to a tenant on a long-term basis--usually for decades.
The University of Washington possesses the buildings that are under a ground lease
formerly with Allens Vulcan Real Estate.
Landmark Dividend LLC is one of the nation's leading ground lease
acquisition companies, providing value, capital and liquidity to qualified property owners of ground leases
for cellular towers, billboards, fiber and alternative energy infrastructure.
Bank ground leases
with twenty or more years of lease term remaining experienced compression
One critical element is that the ground lease
be financeable by the developer's lender.
are almost always much longer than standard leases of existing space, running anywhere from 20 to 99 years.
Azure's sales team has also been working to change the industry's knee-jerk reaction to buildings on leased land, trumpeting the idea that not all ground leases
are created equal.
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.
To establish financeable ground leases
, you need to be aware of the various required provisions.