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Co-Head of Investments
tdoherty@istar.com
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How a ground

lease works

Ground leases 101

Everything you need to know about ground leases designed for the modern real estate finance markets.

the Basics

At the most fundamental level, a ground lease represents ownership of the land underlying a commercial building, leased to a tenant for an extremely long duration – usually the greater of 50-99 years. Ground leases enable owners, operators and developers to build on land and operate properties they often otherwise wouldn't be able to afford.

Tenants assume control of the building and responsibility for rent, taxes, construction, insurance and financing. At the conclusion of the term, the building and its improvements revert back to the landlord (Safehold). However, lease extensions are common, and more importantly, tenants are able to generate significantly enhanced returns relative to fee simple structures over the course of nearly a century.

Ground leases for the modern era

For the first time in history, Safehold has designed a ground lease that prioritizes both the near and long-term interests of its tenants.

Ground lease dictionary

In creating the Safehold™ ground lease, we asked ourselves why should building owners targeting a 15-plus percent ROE

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FAQ

Safehold™ ground leases can be part of the capital structure of almost any property within the $7 trillion+ commercial real estate industry. Our custom-tailored solutions are designed to give you a competitive advantage.

Why ground leases

Who uses a ground lease

What is the benefit

What is a ground lease

Where can I find a ground lease