disregarded the provisions of the statutes for determining the valuation of the property." Specifically, Walgreen argued that the trial court improperly valued the leased fee
interest, rather than the fee simple interest, and used too narrow a highest and best use for the property given its pharmacy nature.
In addition, three loans in the pool (10.2%) are secured by leased fee
properties located in New York City and Portland, OR.
SL Green agreed to sell the leased fee
interest for the building, located in 885 Third Avenue, for a gross sale price of $453 million.
A USD120m debt, backed by leased fee
interest in the Dream Hotel Downtown at 346 W.
Lessor's appraiser considered the terms of lease and estimated the value of the leased fee
interest in the property at $6,880,000.
Cushman & Wakefield represented L&L Holding Company and BlackRock in the $145 million sale of the leased fee
at 635 Madison Avenue.
The appraiser used a leased fee
analysis to value the subject property.
In valuing the fee interest of property subject to a long-term, build-to-suit lease, an appraiser properly considered the value of the leased fee
, according to the New York Supreme Court, Appellate Division.
"The availability of this financing structure provides owners of leased fee
estates a tremendous opportunity to leverage their fee positions and create substantial liquidity," said Michaels.
Even if the lease is at market rent, the fee does not necessarily equal the leased fee
sales data should include percent leased at time of sale (which can be different from percent occupied), a general understanding of prior leased occupancy history, meaningful remaining lease terms at time of sale, general escalations for remaining lease terms, and presence or absence of shadow anchors in addition to the rent information.