Enter the numbers an owner knows and look at the same property from two seats: the owner who takes the land proceeds and keeps the building, and the investor who buys one half or the other. Rent sized to NOI, price built from the rent, a lease written to the standard every leasehold lender uses.
Enter the numbers an owner knows. The owner seat shows what the land is worth to a long-term land investor, what the rent costs, and what the owner keeps. The investor seat shows the same building as two purchases. Nothing here is a quote; it is how we size every split before anyone calls.
Illustration from the numbers you entered, using the sizing rules we apply to every split. Not a quote, an offer, or advice. Actual rent, cap rate and price are set in writing on the specific property, and leasehold debt sizing is set by the leasehold lender’s underwriting.
The sliders above are the flexible part. The lease underneath is not, because the lease is what makes the building half financeable, and a financeable building half is what makes the land half safe. One document serves both sides.
No. It is the sizing we apply to every split, run on the numbers you entered. A real number comes in writing after we see the property, and it is built the same way: rent as a share of stabilized NOI, price as rent divided by the ground cap rate.
Because a land investor is buying a 99-year income stream, not a development site. Rent is sized to what the building can carry; price is the rent capitalized. When the land's market value and the project cost disagree, the price can be built in two parts, which is one of the things we are flexible on.
The term is finite and the ground rent is paid ahead of the owner. Buyers price both. The spread is usually 50 to 100 basis points and narrows as the lease seasons and lenders have financed it.
That is the normal split. The owner or sponsor keeps the leasehold and the income, takes the land proceeds at closing, and pays ground rent. The land goes to a long-term investor; a 1031 exchanger is the most common one.
Yes. Each half is a whole real-estate interest sold to one buyer. A leasehold with thirty or more years remaining is like-kind to a fee, so either half works as replacement property. Fractional interests are arranged privately with licensed partners and are never offered on this site.
A fee that is never subordinated, a term running at least thirty years past loan maturity, escalations that are fixed or capped and never reset to market, rent paid without offset, and a fee mortgage, if any, that sits behind the lease. Every lease we write meets that standard, which is why the building half can be financed and the land half is safe.
Owners: send stabilized NOI, total cost and the address. Investors: send the day-45 date and the proceeds. You get the real number, built the same way, in writing.