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