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 ?
The company announced it has signed contracts for the acquisition of the existing ground lease at 425 Park Avenue for approximately $620 million.
Dallas-based, privately held real estate investment firm, Mohr Capital, has acquired its first hotel ground lease in downtown Milwaukee, the company said.
Through this agreement, Aeroterm will extend the ground lease to 2050 and expand its leased premises by approximately 6 acres of additional land on which it will construct the building expansion.
Cypress Cove's long-term liability profile is also affected by an operating lease for its land and a related deferred ground lease payable.
I was able to find a lender that provided a rate around 3.95 percent and was comfortable with the hotel being on a ground lease. The borrower was able to cash out and potentially utilize those funds towards additional acquisitions, Bhat concludes.
* Leased Fee Interest--In the context of a ground lease, the leased fee interest is held by the landowner, who is the landlord under the ground lease.
For landowners, a ground lease can be appealing because it offers a long-term, low-risk income stream while they retain ownership of a property.
"The terms of this ground lease gave an option for Mrs Cardinale to extend the lease for three years in 2005.
Based in Annapolis, Maryland, Matthews will work to provide capital to consumers and businesses seeking to liquidate ground leases to cell towers, billboards, wind turbines, solar farms and fiber optic networks.
Northbrook, IL, May 01, 2015 --(PR.com)-- The Boulder Group's Research Department has released a new research report providing comprehensive numbers and analysis of the activity in the National Net Lease Bank Ground Lease Market.
Q: One of our clients owns land that he leases under a ground lease to a tenant that constructed its own commercial building.
One critical element is that the ground lease be financeable by the developer's lender.