Ground Lease Assets
Ground lease assets involve fee simple land ownership with tenant improvements and long-term lease structures. These properties offer predictable rent escalations, minimal landlord responsibilities, and reversion value when leases expire. Ground leases are typically 20-99 years with built-in rent escalations and tenant responsibility for all improvements and maintenance.
Fee simple land ownership with long-term lease income
Predictable rent escalations built into lease terms
Minimal landlord responsibilities (tenant maintains improvements)
Reversion value when lease expires (typically 20-99 years)
Focus Areas
- Grocery-anchored centers
- Hospitality pad sites
- Essential service facilities
Frequently Asked Questions
What makes ground lease assets suitable for 1031 exchanges?
Ground lease assets qualify as like-kind replacement property when held for investment. They offer passive income with minimal management responsibilities, long-term lease stability, and predictable rent escalations. The fee simple land ownership provides reversion value when leases expire, offering both current income and long-term appreciation potential.
How do you evaluate ground lease terms and tenant credit?
We review lease terms including initial rent, escalation mechanisms (CPI, fixed percentage, or market resets), lease duration, and tenant responsibilities. We assess tenant credit, operational history, and business model sustainability. We also evaluate reversion value and potential uses when leases expire.
What are the risks associated with ground lease investments?
Key risks include tenant default (though improvements typically revert to landlord), lease expiration without renewal, and potential environmental liability. We review lease language, tenant credit, and property history to assess these risks. We also evaluate reversion value and potential uses if tenant doesn't renew.
Can you help identify ground lease properties within my identification window?
Yes. We work with brokers specializing in ground lease properties and can quickly identify available assets matching your criteria. We provide property summaries, lease abstracts, tenant credit analysis, and reversion value assessments to support your identification letter submission.
Related Property Types
45-Day and 180-Day Deadline Calculator
Enter your relinquished closing date to preview statutory milestones. Share the outputs with your intermediary, CPA, and lender to keep every stakeholder aligned.
- 45-day identification deadline
- Select a closing date to calculate the deadline.
- 180-day exchange completion deadline
- Select a closing date to calculate the deadline.
Dates represent calendar days. Confirm every milestone with your Qualified Intermediary. We coordinate stakeholder updates but do not provide intermediary services.
Identification Rules Explained
Use this guide to determine how you will complete the identification letter. We prepare letter drafts, valuation support, and backup scenarios so your $Seattle, $WA exchange maintains compliance through day forty-five.
Three-Property Rule
Identify up to three properties of any value. We document pricing support, lender feedback, and compliance notes for each Seattle, WA asset so your intermediary accepts the letter without revisions.
200 Percent Rule
Identify more than three properties as long as combined fair market value stays below 200 percent of the relinquished property value. We track valuation evidence for every property to prove compliance.
95 Percent Rule
Identify any number of properties and close on at least 95 percent of the aggregate value. This strategy supports diversified portfolios and DST placements when executed with strict tracking.
We coordinate with your intermediary, CPA, and counsel, provide documentation, and maintain audit-ready files. We do not provide legal or tax advice.
Exchange Timeline Tracker
Monitor each milestone from sale to replacement closing. Select a step to review the focus items and assign responsibilities to your advisors.
Document sale terms, confirm intermediary wiring instructions, and deliver closing statements within twenty-four hours.
Keep your intermediary, CPA, attorney, and lenders updated on each milestone. We manage the project plan, but all compliance decisions remain with your licensed advisors.
Discuss Ground Lease Assets
Share your timeline, equity targets, and lender objectives. We respond within one business day.