The Bratton Team

  1. You have to think into the future on these properties and understand the ramifications of the current terms of the contract. Don’t assume you can extend the lease.
  2. Look for low rents. Ground lease rents that are below market provide properties with higher cash flow for your portfolio.
  3. Consider depreciating the assets faster to match up with the lease term.
  4. Time tenant leases to rollover as potential ground rent increases come through in the master lease.
  5. Pass your ground rent increases to tenants. This needs to be put in the lease up front.
  6. Older ground leases are typically more flexible. The fee owner may also be more motivated to make changes like increase the rent and modernize the terms of the lease.
  7. If you are a ground lessor, consider buying the leasehold interest, and do not merge them.
  8. Run a title report to see which of any ground lease amendments are recorded.

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