A 2019–2022 vintage loan hits a maturity wall and the refinance comes up short. Land proceeds retire the gap or pay the maturing senior down to a refinanceable level — without new preferred equity or a dilutive partner. Non-recourse, non-amortizing, and the smaller basis clears an agency or conventional takeout.
| Ground lease | Pref / mezzanine / rescue equity | |
|---|---|---|
| The gap | Retired with land proceeds — pay the senior down to a refinanceable level. | Plugged with new debt or equity layered on top of the existing stack. |
| Cost | ~6–6.75% ground rent, non-amortizing — the cheapest layer in the stack. | 9–15% pref or mezz, or expensive rescue equity priced to the distress. |
| Your equity | No dilution — no new partner, no promote given away. | Dilution, a hardened pref, or loss of control to the new money. |
| Recourse | Non-recourse — it is a sale of the land, not a guaranteed loan. | Often carries a guaranty, springing recourse, or completion backstop. |
| Takeout blocks | Cleared — proceeds shrink the basis so an agency or conventional takeout fits. | Leaves the size problem in place and layers on more debt — the block remains. |
| Maturity risk | Gone on the land — permanent, no balloon, no next wall. | Adds another short-dated maturity to refinance again in a few years. |
Best fit: 2019–2022 vintage, land-heavy or stabilized assets with a real refi gap · deals where the senior would refinance at a lower basis · situations that fall short of an agency or conventional takeout test — one principal counterparty for the land and the leasehold financing.
When a maturing loan can't fully refinance, the gap is the shortfall between the old balance and what a new loan will size to today. A ground lease monetizes the land — typically 30 to 40% of basis — and those proceeds retire the gap or pay the maturing senior down to a refinanceable level, so the takeout closes without new pref or a forced sale.
Pref and mezzanine usually price at 9 to 15%, add another short-dated maturity, and often dilute you or take promote and control. Ground-lease proceeds carry at roughly 6 to 6.75%, are non-amortizing and non-recourse, add no new maturity wall, and cost you no equity. You keep the building and 100% of the upside.
Yes. Because the land is no longer your collateral, the new loan sizes off a smaller basis that an agency or conventional lender can clear — so a takeout that fell short on the old basis can fit where it didn't before.
The address or parcel, the as-complete stabilized NOI, total project cost, the maturing balance, and the asset type. We return an indicative land value, the implied ground rent and coverage, and how the proceeds close your gap — in about 48 hours, as principal or arranged capital, and non-binding.
Maturing 2019–2022 vintage loan with a refi gap — especially where you'd rather not raise pref, or the takeout falls short of an agency or conventional test. Send the address, the as-complete stabilized NOI, total project cost, and the maturing balance — we return an indicative land value in 48 hours, as principal or arranged capital.
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