In the simplest form, a ground lease is a long-term net lease (usually 49 years or 99 years) of land including any improvements on the said land.  Assets that can be subject to a ground lease include but are not limited to, vacant land, office buildings, and large residential buildings. 

Advantages for Owners/Ground Lessor:

• The owner retains ownership to the property and therefore:
• is not responsible for any capital gains or transfer tax payments they would incur if they were to sell (although there are instances where transfer taxes might be incurred);
• keep the property in the family and thus will generate a hassle-free income stream for generations;
• they can mortgage the leased property; and
• can sell the property.
• The ground lessee (the tenant) under the ground lease would be responsible for all of the management, costs, and expenses of the leased property.
• The ground lessee will maximize the potential and improve the property by:
• making capital improvements to the existing structure; or
• in the case of a development site, they will be constructing a new building.
• Many ground leases contain a clause (reversionary clause) which transfers any improvements made by the tenant to the landlord at the end of the lease.

Advantages for Tenants/Ground Lessee:

• The tenant’s basis would be significantly reduced because the tenant would not need to provide the upfront capital that is needed to purchase the property.
• If an owner is unwilling to sell his property, this gives the tenant/investor a way to utilize this asset in a way that can benefit both parties.
• The tenant can mortgage the lease, however, any financing obtained will not be against the leased asset.

LEARN MORE ABOUT GROUND LEASES >>

Skyline Properties main focus is to seek out “quiet deals”. These deals are off-market transactions designed to provide the seller with complete discretion and the buyer with a valuable asset. Skyline controls and negotiates every stage of the deal, producing win-win transactions causing both the sellers and buyers alike to repeatedly return to Skyline Properties to sell and purchase additional assets.

​Skyline Properties handles many different property types, including ground leases, commercial buildings, apartment buildings, townhouses, mixed use investment building, mixed use user buildings, live plus income buildings, industrial properties and development/conversion sites. Our staff is experienced in representing properties of all values and are expert in meeting the needs of the most demanding clients.

​Understanding the value of your property or potential investment is the critical first step in making the right sale. Whether you are an owner considering selling your asset or would like to know the current market value of your property, our asset evaluation will provide you with a thorough analysis of your investment property. Combining a complete financial analysis with the most up to date market data, our evaluation will help you establish the current market value of the asset. Skyline will not only review today’s pricing environment but will also explore every possible opportunity that could result in maximizing the asset’s value. Such opportunities include, the sale, ground lease, joint venture, refinancing, or repositioning of the asset.

Skyline PropertiesBrokerage Services Include:

• Ground Lease (Net Lease)
• Multifamily Residential and Mixed-Use properties
• Retail Condominiums and Shopping/Strip Centers
• Office and Loft Buildings
• Hospitality related, including hotels, assisted and senior living
• Industrial, warehouses, storage and parking garages
• Development Site Assemblages, Conversions and Air Rights Transfer
• Triple Net leased (NNN) Properties
• Estate Sales
• Bulk Sales of Unsold Condo/Coop Packages
• 1031 Exchange Properties
• Joint Venture and Partnership Buyouts
• Nonperforming and Performing Bank Mortgage Sales
• Bank Owned (REOs)