Typical Structure

  • Typical Structure: $5-$150 Million
  • 99-year term, buy-back option available
  • Annual escalation with periodic CPI resets
  • NNN structure
  • NOI Coverage of 3.0x and up
  • Up to 40% of the capital stack
  • Cap rate dependent on deal strength

Leasehold Owner Benefits

  • Less Equity Required – Optimized Capital Stack
  • Earn Better Returns – Higher IRR’s and Cash-on-Cash Yields
  • Tax Advantages – Retain 100% Depreciation
  • Readily Financeable – Lender Approved Lease Form
  • Low-cost capital with no balloon risk for 99-years

Ground Lease

  • Transactions – Acquisition & Recapitalization
  • Property Types – All major types considered
  • Geography – Top 50 MSA’s in U.S.
  • Transaction Size – $5 Million to $100 Million

Earn Higher Returns on Your Capital.

Earn Higher Returns on Your Capital

We are actively seeking to structure new ground leases and acquire existing ones, and we are able to deliver on all property types. We can provide a highly competitive portion of your capital stack.

Less Equity with a Ground Lease

BH Properties

For Submission of All Opportunities

Representative Transactions

A ground lease can help fund a significant portion of a sponsor’s acquisition or recapitalization, and provides low-cost permanent capital with no immediate balloon risk. We can structure it based on your needs.

Apartment - Case Study

BH bought the leased fee and simultaneously created a 99-year ground lease for the acquisition of a new 298-unit luxury apartment. The leasehold buyer brought in BH to provide just over 40% of the purchase price along with a leasehold lender providing another 75% of the remaining purchase price, allowing for much less equity than traditional financing to close.  BH’s ground lease was approved by Fannie Mae as part of the leasehold 10-year fixed rate loan.

Millennium Apartments

Millennium Apartments

Millennium Apartments, Fort Myers, Florida

This 298-unit apartment in Fort Myers Florida is a retreat where tenants can flourish and enjoy life.

Hotel - Case Study

BH acquired the leased fee interest in three parcels in Manhattan secured by ground leases with 96 years remaining and improved with 3 select service hotels.  The seller was  a publicly traded REIT and the transaction also required BH to assume several hundred million in existing financing.

8 Stone Street

8 Stone Street

8 Stone Street, New York

A 43-story DoubleTree Hotel located in the Financial District offering magnificent views of Manhattan, Brooklyn, and Ellis Island.

311 West 39th Street

311 West 39th Street

311 West 39th Street, New York

A 40-story Element Times Square Hotel (“Element”) opened in 2010 and is conveniently located in New York City’s leading submarket, Times Square.

370 Canal Street

370 Canal Street

370 Canal Street, New York

The modern 21-story Sheraton TriBeCa Hotel and is conveniently located at the intersection of SoHo and TriBeCa.