For the exchanger whose clock is running and whose first choices are falling out, and for the advisors standing next to them. We create, hold and sell the two halves of a ground-leased property. Whole interests. Fixed price. Fixed date.
Most exchangers fill line 3 of the identification form with a long shot. When lines 1 and 2 fall out on day 140, that line is the only thing between the client and the tax. We keep standby positions with the address, price and closing date fixed before anyone calls. Write one down by day 45. If the first two close, tear it up.
For intermediaries and CPAs: you are not recommending a property. You are handing someone a sheet. The one-page sheet is here. The longer explanation for the client is here.
| When | What happens |
|---|---|
| By day 45 | Identify the property by address in writing. It commits the client to nothing. |
| The call | Same day: price confirmed, purchase agreement sent. Next day: your office confirms the identification and applies exchange funds as the deposit. |
| Closing | Inside whatever is left on the 180. We are the seller and we already decided; the clock is title and your office. |
A whole leased fee or a whole leasehold is real property, sold to one buyer, and it is what this page describes. Where a position is larger than one exchanger, or a client’s check is smaller than a whole unit, tenant-in-common and Delaware statutory trust structures exist. We arrange those privately, with licensed partners and counsel, for accredited investors who ask. Nothing fractional is offered on this website.
A leasehold with thirty or more years to run is like-kind to a fee. A 99-year ground lease clears that line with decades to spare, so either half qualifies. The thirty-year rule.
Exchange funds can be applied as earnest money on identified replacement property, through the intermediary. Identification and the clock.
Selling the land under your own building is itself a disposition most owners never think to exchange. The leaseback question. For intermediaries, six questions to run.
A whole real estate interest: either the land under a commercial building subject to a 99-year unsubordinated ground lease, or the building and its income above that land. One buyer, one deed or assignment, no fund, no manager.
Because the buyer is not buying yield. They are buying the tax they do not pay, with nothing to manage for 99 years and a position senior to the building's lender.
Yes. Identification by address commits you to nothing. If your preferred properties close, nothing happens.
We are the seller, the land carries no debt, and diligence is done before a position is listed. The only variables are title and your intermediary's process.
Not on this site. Fractional structures are securities; where they fit, we arrange them privately with licensed partners and counsel for accredited investors who ask.
No. Identification mechanics, the 45- and 180-day periods, and like-kind treatment are matters for your qualified intermediary, counsel and CPA on your facts.
The interests on this page exist because an owner sold the land under a building and kept operating it. If that is you: we buy the land under projects of $4–35 million total cost on our own balance sheet, and run the sale to the full buyer pool for larger ones. Two numbers get you a price.
Principal AdvisoryWe reply with what is identifiable now, the price, and the closing window. Your intermediary can confirm the identification the same day.