Low Cost, 99-Year Unsubordinated Ground Lease Options

CAPITAL STRUCTURE: GROUND LEASE

Eyzenberg LFC creates and acquires 99-year, unsubordinated ground lease options in tandem with its institutional partners.
Property & Transaction Types: Acquisition, recapitalization & development of all income-producing asset classes
Transaction Size: $10MM – $150MM+
Pricing: 3.75% – 5% acquisition cap rate dependent on the asset class, location, percentage of the total value, coverage, development, etc…
Purchase Price: Approximately 20% – 35%+ of the total property (fee simple) value
Ground Rent Coverage: 3x – 5x of stabilized NOI (depending on asset class and deal specifics)
Rent Escalation: Flexible options include fixed steps, CPI adjusters (with or without caps and lookback resets), percentage rent or flat/ramp up options
Buy-back Options: Deals can be structured with options priced in
Leasehold Financing: Ground leases are structured to accommodate current balance sheet and securitization requirements enabling leaseholds to be easily financed

Seth Schumer

MANAGING DIRECTOR

Seth Schumer joined Eyzenberg & Company as a Managing Director. His primary focus is transaction management and structuring advisory for commercial real estate finance transactions.

Prior to joining the firm, Schumer served as Head of US Investments for Quadrum Global (formerly Cube Capital) where he grew platform from one US hotel investment to an 18-asset mixed use portfolio through new acquisitions, ground-up developments, team building and creation of three internal operating platforms (Tesseract Investment Advisors, Arlo Hotel Management and Quadrum Senior Living Management). While at Quadrum, Schumer acquired, capitalized and asset managed a hotel portfolio that includes Arlo SoHo, Arlo NoMad, Nautilus South Beach, The Godfrey Hotel Chicago, Essex Inn Chicago, and B Resort & Spa at Walt Disney World, and led the efforts to create an in-house hotel management platform and the new Arlo Hotel brand. He additionally led the efforts to develop a senior housing property and the Amavida brand.

His expertise in debt financing including loan underwriting, servicing and borrower relations was learned while working in London for ABN AMRO, and in New York for Chase Manhattan Bank and Chemical Bank. Whilst at AIG Global Real Estate and Real Estate Capital Partners (now CP Capital), he additionally gained asset management, development insight and JV equity structuring experience. Also, during his time at AIG, Seth was part of team that acquired four RTC loan portfolios.

Schumer holds a master’s degree in real estate investment and development from New York University and a bachelor’s degree in accounting from the University of Maryland.

Email

sschumer@Eyzenberg.com

D: (305) 995-0777 ext .306
C: (305) 360-9625