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Ground leases are sophisticated contracts combining the elements of buy/sell agreements, commercial leases, and a sophisticated financing.
A landowner enters a long-term lease with a developer who constructs a building or other improvements on the land. The developer generally finances the building, occupying it or leasing it out to other tenants, paying the landowner rent on the underlying ground over a long period of time.
There are many benefits of ground leases for the landowner and the tenant. But they are very complex agreements involving sophisticated economic calculations and require very careful review.
This program provides a practical guide to how ground leases work, and negotiating and drafting them.
Part 2 topics include:
- Major financing issues, including subordination
- Construction and development issues
- Special condemnation and casualty considerations