The appraiser used a
leased fee analysis to value the subject property.
The purpose of Ihc appraisal is lo estimate the Market Value "As Is" of the
leased fee interest in Slip I (Parcel 5A), having a street address of Resort Drive.
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.
A 45 percent joint venture interest in the
leased fee of 885 Third Avenue, New York, NY, also known as the Lipstick Building, for approximately $39.
I found the article "Valuing the
Leased Fee Interest Subject to a Ground Lease--How and Why the Details Matter" (Winter 2017), by Gary S.
Cushman & Wakefield represented L&L Holding Company and BlackRock in the $145 million sale of the
leased fee at 635 Madison Avenue.
The 380 Madison Avenue loan (15%) is secured by the
leased fee interest in a 25-story office building in midtown Manhattan in New York City.
The second feature article in this issue, "Valuing the
Leased Fee Interest Subject to a Ground Lease--How and Why the Details Matter," looks at the variety of income streams in modern ground leases, and how these can be accounted for and measured in valuation of a
leased fee interest.
The largest slated transaction of the bunch, the dealing of the
leased fee interest to 2 Herald Square, will account for $365 million when the deal closes in the final quarter of this year.
The security for the loan consists of a
leased fee interest in the Lowe's Home Improvement Center.
Leases now include a wide variety of complex income streams that need to be understood and measured as part of a
leased fee valuation.
