Ground Lease Financing

Unlock the full potential of your property. By separating land ownership from building operations, borrowers can generate long-term, predicable income while preserving control of the underlying asset. This advantageous structure offers flexibility, potential tax advantages, and the ability to maximize property value - without the upfront capital typically required.

 

GROUND LEASE TO PROPERTY VALUE (FEE SIMPLE)

Up to 40%.

LEASE NOI COVERAGE

2.50 – 4.00.

INITIAL YIELD (OVER 30-YR TREASURY)

0.15 – 0.75%.

RENT ESCALATION (PER ANNUM)

2.00 – 3.00%.

CPI LOOKBACK

None.

TERM

99 years.

TARGET ASSET CLASSES

Market-rate multifamily and affordable properties.

REPURCHASE OPTION AT LEASE TERMINATION

Lessee buyout option at $1.

EARLY PURCHASE OPTION

Yes, various option can be built-in.

GROUND LEASE ACQUISITION FEE

Typically 1.00% - pending deal terms.

GEOGRAPHY

Top 75 U.S. MSAs.

 

This sheet is designed solely as an aid to prospective borrowers and other clients on programs offered by NewPoint. It does not represent or imply a contract or a commitment to lend funds. A commitment to lend funds may only be made by a written letter issued by NewPoint to a prospective borrower. This sheet does not constitute an offer to sell, buy or the solicitation of an offer to buy any securities. This term sheet is subject to change at any time without notice at the sole discretion of NewPoint and its affiliates.