Ground leases are sophisticated contracts combining the elements of a buy/sell agreement, a conventional commercial lease, and a 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 special drafting. This program will provide you with a practical guide to understanding how ground leases work, and negotiating and drafting the underlying document.
Most important provisions of ground leases
Understanding the underlying economics of ground leases
Methodologies for rent resets to reflect risk and value over time
Mortgagee leasehold protections
Restrictions on the use of premises and improvements over time
Special condemnation considerations
Joshua Stein is a partner in the New York City office of Joshua Stein, PLLC, where he has wide has wide experience in commercial real estate transactions, defaulted loans, and other real estate disputes. He is a Fellow of the American College of Real Estate Lawyers, a member of the Anglo-American Real Property Institute, and formerly served as chair of the Commercial Leasing Committee of the New York State Bar Association’s Real Property Section. He is the author of five books, including “A Practical Guide to Real Estate Practice” (ALI-CLE 2001). Mr. Stein earned his B.S. from the University of California at Berkeley and his J.D. from Columbia University Law Schoo