Development is where the ground lease works hardest. We buy the land at construction closing, sized off the stabilized NOI in your own proforma, and our capital funds day one alongside your construction loan. The equity gap most sponsors fill with preferred equity or a dilutive JV partner shrinks to a fraction.
Three design choices make the lease financeable through the riskiest years of a project's life:
| Design choice | Why the construction lender says yes |
|---|---|
| Rent sized off stabilized NOI, from your proforma | If the NOI moves, rent and price re-scale. Nobody argues about forecasts. |
| The first years of rent sit as a line in the development budget | Rent is funded like interest reserve — no operating pressure before the building earns it. |
| Recognition, notice-and-cure, and new-lease rights in the lease | The lender's collateral survives any default above or below it. Standard institutional form. |
Yes. The purchase is sized off the stabilized proforma, and the protection is structural: conservative rent sizing, rent carried in the development budget through lease-up, and a lease drafted so the construction lender's position is never at war with the land.
No. It replaces the expensive layer — preferred equity, mezzanine, or the dilutive JV slice. Your construction loan gets smaller and safer, because the land is out of its basis.
On typical numbers, a development that needs 25–35% equity under fee-simple construction financing needs a fraction of that with the fee monetized — often under 10% of project cost.
Send the budget, the stabilized NOI, and the stack you have so far. We come back with an indicative land value and the full sources-and-uses, fast.
Email us the property