Ground Leases for 21st Century Capital Structures

CTL Finance is now introducing a new brand of ground leases we call REEIGLs (Real Estate Equity Income Ground Lease) as a capitalization option to help leaseholders maintain liquidity and enhance returns on equity. REEIGLs are structured to work seamlessly with real estate lenders in modern capital structures and are generally categorized by three origination methods.

Manufacture a Ground Lease

with a Third Party.

We pursue opportunities where a third-party owner of a commercial property may be interested in utilizing a Ground Lease structure to facilitate its options with respect to its interests in the property. We will manufacture the Ground Lease by splitting ownership of the property into an ownership interest and Ground Lease on the land, and a separate leasehold interest of the building and improvements thereon. We will acquire the ownership interest and Ground Lease on the land from the third party.

 

Acquire Existing Ground Leases.

We acquire existing Ground Leases that are marketed for sale and actively solicit potential sellers and related property brokers of existing Ground Leases to engage in off-market transactions.

Originate Ground Leases to Provide Capital for Development or Value-Add Redevelopment or Repositioning.

We seek opportunities where we can purchase land and simultaneously lease it pursuant to a new Ground Lease to a tenant who plans to develop a new, or significantly improve an existing, commercial property on the land.

GROUND LEASE

CURRENTLY SEEKING TO ACQUIRE OR CREATE GROUND LEASES WITH THE FOLLOWING SPECIFICATIONS:

  • Transaction Size: $20,000,000 - $500,000,000

  • Property Types: Office, Medical Office, Retail, Industrial, Student Housing

  • Cap Rate Range: 3.5% - 5.0% +

  • Ground Lease to Property Value: 25% - 40%

  • Coverage Range: 3.5x – 5.0x +

  • Geography: Top 25 Markets Nationwide. Will consider other markets on a case-by-case basis

  • Closing: “Quick Close” capability