A sponsor needs the land cost out of the capital stack. A land investor needs a long, safe lease to own. Neither can find the other, and no ground lease exists until someone writes it. We find both sides, structure the split, write the lease to the standard every leasehold lender uses, arrange the leasehold debt, and bring the transaction to closing. We create all of it.
An owner with a large site who wants land value out without selling the building or the business.
A developer whose deal is above our check and who needs the land cost out of the equity and a leasehold loan that actually closes.
An institution or nonprofit that can lease but cannot sell, running a process it will live with for 99 years.
A sponsor or syndicator holding a ground lease that needs to be financeable, or a leasehold that needs debt placed.
| Work | Deliverable |
|---|---|
| Structure | The split: rent as a share of NOI, cap, escalations, coverage, what it does to the equity requirement |
| Paper | A ground lease written to the published agency leasehold-mortgagee standard, so the leasehold lender says yes the first time |
| Debt | Leasehold financing arranged with lenders who close ground-leased collateral; fee earned at closing of that loan |
| The other side | The land investor whose box the deal fits, brought to the table with the lease already written |
On most deals we are a principal: the buyer of the land, with our capital partners. On larger ones we are the party that structures the transaction and brings the land investor. Either way you know before you sign anything which one it is and how we are paid. We are not a listing broker and we do not run auctions.
Scoped engagements and document reviews are described at advisory engagements. If you are holding an offer on a tax credit deal, start with five questions before you sign. The lender standard we write to is summarized at what leasehold lenders require.
Valor provides real estate advisory and arranges real estate loans. Valor is not a broker-dealer and does not offer, place or raise securities. Nothing here is legal, tax or investment advice.
Above roughly $35 million of total capitalization, or a land check above what we buy as principal. Below that we are usually the buyer.
It depends on what the deal needs. Usually a retainer for the work and a fee when the transaction closes, agreed in writing before we start. No promote.
No. On a deal we structure for another investor, we are not also a bidder, and we say so in writing.
Yes. That is usually the piece that decides whether a ground-leased development closes, and it is where most ground-lease capital providers leave the sponsor alone.
No. We create ground lease transactions and arrange real estate loans. We are not a broker-dealer.
The deal: stabilized NOI, total cost, the land basis, and whatever lease or term sheet exists. We will tell you whether there is a land investor for it before any engagement is signed.
The land, on a 99-year lease: nothing to manage, senior to the building’s lender, low yield because the buyer is buying the right to not pay the tax. The building above it: higher yield, paid monthly, depreciable. Both are replacement property. Both close on a date we control, which is the part that matters on day 140.
1031 SolutionsWorking with an intermediary? The standby sheet for line 3 of the identification form.
We will tell you whether there is a land investor for it and what the lease has to say for the leasehold lender to close. Then you decide whether to engage us.