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.

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"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.

Sheet metal worker a million dollar winner in Bronx land lease

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.

Consolidated-Tomoka Acquires 8 Jacksonville, Florida Ground Leases for USD 32.3m

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.

Valuing the leased fee interest subject to a ground lease--how and why the details matter

With today's ground leases, a landowner leases the land to a tenant on a long-term basis--usually for decades.

Uncommon ground: ground lease assignments can be complex but rewarding for appraisers who enjoy a challenge and can make the most of limited resources

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.

Landmark Dividend hires new VP of Acquisitions

Bank ground leases with twenty or more years of lease term remaining experienced compression

The Boulder Group Publishes Net Lease Bank Ground Lease Research Report

One critical element is that the ground lease be financeable by the developer's lender.

Financing a ground lease: 8 essential terms

Ground leases are almost always much longer than standard leases of existing space, running anywhere from 20 to 99 years.

How a ground lease works

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.

Azure sees signs of life

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.

Ground Lease

To establish financeable ground leases, you need to be aware of the various required provisions.