We Achieve Up to 100% Financing @ 4.9%-6.9% Blended Rate for Select Sponsors on Stabilized and Development CRE Deals
We assist in the completing of a full capital stack for select sponsors. These transactions can achieve superior returns for developers and operators while reducing downside risk. Property types include Multifamily, Hospitality, Medical Office, Senior Housing, Assisted Living, Industrial, Student Housing, Co-Living, and Multi-Tenant Office.
For a commercial developer, there's no greater satisfaction than seeing a project through to fruition...but no greater frustration than watching limited partners grow fat off the fruit of your labor.
GPs dedicate their lives to building...but mostly build fortunes for investors instead of building generational wealth of their own.
I know.
After 18 years as a general partner, I was ready to quit the life – I loved the work, but was drowning under punishing waterfall structures. Then I discovered the liberating power of bifurcated ground leases and saw how sponsors could finally level the field.
That revelation kept me in the game and led me to create Valor Ground Lease Ventures, a family office providing turnkey capital stack solutions that eliminate equity nightmares and let developers do what they do best.
Let us show you how ground leases will get you in the black quicker and provide financial freedom while empowering an even better version of yourself...and why Valor GLV is the best choice to make that happen.
- Joe Bous, Founder, Valor Ground Lease Ventures
WHY GROUND LEASES?
A ground lease lets the sponsor retain ownership over buildings and projects without having to be an owner of land; the sponsor is freed from property burdens while converting underlying assets into equity that reduces your reliance on financing.
Advantages of ground leases:
REDUCE EQUITY REQUIREMENTS
Leveraging land value drastically lowers upfront costs, letting the Sponsor break ground quicker with less LP involvement. Reduced borrowing and fewer hands in the sponsor’s pocket mean decreased investor payout, quicker debt retirement, and more upside for the sponsor.
BUILD
WEALTH
By freeing the revenue potential of the leasehold business from the lower returns of the land component, the sponsor accelerates income generation. These earnings can be reinvested into other
low-barrier ground lease projects, letting the sponsor build a long-term portfolio and generational wealth without the risk, hassle, or commitment of land management.
JUMPSTART
CASH FLOWS
Reduced outstanding debt serviced at a lower cost of capital means sponsors can get their cash out as quickly as 3X faster than with the standard Fee Simple execution.
IMPROVE COVERAGE / REDUCE RISK
Bifurcating a project from land ownership also means divorcing the sponsor’s interests from the unforeseen shocks of land value fluctuations or refinancing. The sponsor is happier by day focused on developing and sleeps better at night insulated from risk.
SEIZE TAX TRANSACTION COST ADVANTAGES
Shedding non-depreciable real estate while still writing off depreciable building improvements reduces your tax burden and further enhances cash flow. Transfer tax, mortgage recordation tax, title insurance, financing costs, and other transaction costs are reduced by the long-term nature of a structure such as this one is sure to reduce the costs associated with selling real estate.
REMAIN FINANCEABLE
AND FLEXIBLE
Modern ground leases incorporate standardized economic caps that provide stability and predictability to keep the sponsor’s position market-compatible and appealing to lenders and agencies. The sponsor eliminates a large portion of debt maturity risk by replacing it with near-permanent capital.
FOCUSED
SKILLSET
Beyond all the bottom line benefits, ground leases allows the sponsor to focus more on developing and less on finance. The sponsor’s expertise is not managing land, begging for money, or servicing debt it is guiding projects and finishing deals.
Given the obvious advantages of ground leases, they’ve become a red-hot real estate commodity...but just as no two projects are ever the same, neither are the parties behind them.
It's imperative to choose your partner carefully before jumping into bed for 99 years.
Let us show you how ground leases will get you in the black quicker and provide financial freedom while empowering an even better version of yourself...and why Valor is the best choice to make that happen.
WHY CHOOSE VALOR?
The GL market is crowded with land speculators and shareholder REITs that don’t give a damn about leaseholder value once they’ve secured their deed.
That’s where Valor is different.
As developers, we understand that your deal is a project of passion and not merely an asset to exploit. As financiers, we know that securing the ground lease is only one part of the capital stack and won't leave you holding the rest of the capital stack.
Get to know us, and you'll find several reasons why we’re the best choice for your ground lease:
1. We're a full-stack solution, they’re a partial stack problem.
We assume responsibility for the entire capital stack and see financing through to the end. Relying upon a carefully curated network of lenders amenable to bifurcated projects, we give you the ground lease equity, get you the leasehold funding, and free you to manage the project.
2. We’re developers, they’re spreadsheet financiers.
The Valor team has walked in the developer’s shoes. As sponsors, we developed dozens of projects over nearly two decades – we understand what it takes, and what it can take out of the sponsor. We also know the stress of dealing with neighbors, banks, lawyers, zoning, contractors, and the other million unforeseeable obstacles that challenge GPs each day.
3. We work with you, they make you work with them.
We know that no two projects are identical, and no two ground lease solutions should be either. Our independence enables latitude and vision to tailor personal solutions instead of forcing the GP into a corporate box or predefined ledger cell. More than a cold appraisal of assets, we consider all the project parameters, GP goals, and development objectives then ask: "how can we construct the capital stack to get this done?" Their adherence to detached metrics and soulless algorithms kills as many deals as it closes.
At Valor Ground Lease Ventures, we’re not only good at what we do, we care about what we do...and we care about what YOU do.
Our team has shepherded over $2B in projects to completion across the country and secured hundreds of millions of dollars in leasehold financing to fulfill capital stack obligations.
Still, we remain more interested in quality than quantity.
Relationships (and deals) run smoother when parties share values, trust, and vision, so we prefer working with a select group of GPs aligned with our goals. Then working with them regularly.
If you want to reduce stress and focus on development while enjoying greater profits and freedom with a team that understands your projects and your passion, reach out to Valor today. We’ll handle the ground lease, manage the whole capital stack, and let you realize your dreams.
That’s next generation ground lease management.
