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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References in periodicals archive ?

BH Properties acquired the ground leases from Lexington Realty Trust.

LA investors close on $250m hotel financing

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

Because of their long-term nature, ground leases typically are reevaluated at predetermined intervals over the life of the lease.

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

The University of Washington possesses the buildings that are under a ground lease formerly with Allens Vulcan Real Estate.

United States : PAUL Allen sells Seattle property to Shidler Group

The company provides value, capital and liquidity to qualified property owners of ground leases for cellular towers, billboards and alternative energy infrastructure.

Landmark Dividend Buys 190 Acres in New Jersey

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

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