Financeable Ground Leases: Landlord, Tenant, and Lender Basics

A ground lease can be an attractive method to develop commercial property. Ground leases offer long-term income and certainty for landlords, as well as flexibility and stability for tenants. In a ground lease, the landlord retains the fee interest in the land while the tenant obtains a leasehold interest in the land and the improvements they make.

A ground lease can be an attractive method to develop commercial property. Ground leases offer long-term income and certainty for landlords, as well as flexibility and stability for tenants. In a ground lease, the landlord retains the fee interest in the land while the tenant retains a leasehold interest in the improvements they make.

This separation of interests impacts financing and the loans the parties can secure related to their project. Making sure a ground lease is financeable is critical for landlords and tenants considering a ground lease, as well as for lenders who underwrite them. This introductory course will outline what makes ground leases attractive to landlords and tenants; the provisions necessary to ensure a ground lease is financeable; the key terms and provisions of a leasehold mortgage; and special considerations for a landlord's fee mortgage, including when to consider and negotiate a subordinated ground lease.

Listen as our authoritative panel reviews key drafting provisions and how to balance competing landlord, tenant, and lender interests for a financeable ground lease.