Experienced Legal Guidance Regarding Commercial Ground Leases
In today’s construction and real estate markets, commercial ground leasing is becoming increasingly popular for owners, contractors, developers and investors. A commercial ground lease allows an owner to lease his or her property on a triple net basis for an extended period of time, sometimes between 49 years and 99 years.
What A Commercial Ground Lease Involves
The commercial ground lease usually involves a significant monetary commitment by the tenant to improve or construct a new building on the owner’s property. The commercial ground lease gives the owner a long-term income stream and also allows the avoidance of some of the immediate heavy income\capital gains taxes that would normally be paid if the owner had sold the property. (Transfer taxes will still need to be paid in certain circumstances).
From the investor’s and developer’s points of view, the commercial ground lease allows the investor or developer to gain the long-term control and use of the property, without the need to lay out the cash for the purchase of the property, essentially saving the developer millions of dollars in capital, which it can now use for the construction of a new building on the property.
Also, after the ground lease has been signed, both parties can still refinance their respective interests in the land and the ground lease. A solid ground lease that accurately reflects your interests and effectively addresses each parties’ financing needs, is critical to the successful ground lease project.
Work With An Experienced Firm
At the Law Offices of Michael P. Berkley, P.C., we have nearly three decades of experience negotiating, drafting, reviewing and interpreting triple net commercial ground leases. We call upon our extensive knowledge and skill to mitigate your financial risks and help you plan for the future. Attorney Michael Berkley will work with you closely to craft cost-effective and efficient solutions for your ground lease law matter or construction issue.
When you need a knowledgeable ground lease lawyer in any of the five boroughs of New York City, Long Island or New Jersey, call 888-512-5875 or contact us online to schedule a free initial consultation.