Hard money and bridge loans solve an urgent problem at 10–15% interest-only — with points on the way in and a maturity on the way out. A ground lease solves the same problem at ~6–6.75%, non-amortizing, with no maturity ever. We buy the land; you keep the building, the operation, and 100% of the upside.
| Valor ground lease | Hard money / bridge loan | |
|---|---|---|
| Annual cost | ~6–6.75% ground rent, fixed escalations, fully predictable. | 10–15% interest-only, often with 2–4 points upfront and exit fees. |
| Maturity | None, ever — a typically 99-year lease. Nothing to refinance, no clock. | 12–36 months, then a balloon — refinance or lose the property. |
| Extension risk | Not applicable. | Extensions cost fees and are at the lender’s option — leverage sits with them, not you. |
| What it is | Permanent capital — the land value comes out as cash you never repay. | Debt — every dollar comes back due, plus the carry. |
| Recourse | None — it’s a sale and a lease, not a loan. | Frequently personally guaranteed. |
| Default outcome | Lease protections, cure periods, and a landlord whose interest is the rent — not the keys. | Foreclosure by a lender whose business model includes owning your asset. |
| Pairing | Pairs with a right-sized leasehold loan — together they typically retire the entire bridge stack. | — |
The takeout math: ground-lease proceeds (typically 30–40% of total value) plus a conventional leasehold loan on the building routinely add up to a full payoff of bridge debt — and because your current coupon is so high, the payment usually drops even though the ground lease is permanent capital. That is exactly the situation this structure was built for.
Yes — that's one of its most common uses. The land sale typically frees 30 to 40% of the property's total value in cash, and a conventional leasehold loan on the building covers the rest. Together they retire the bridge debt, and because bridge coupons run 10 to 15%, your total payment usually drops.
Almost always. An extension costs fees plus another year of double-digit interest-only carry, and the balloon is still there at the end. Ground rent runs about 6 to 6.75%, never amortizes, and never matures — there is no next refinancing event to underwrite.
We are a principal, not a committee. An indicative land value comes back in about 48 hours from an address, the stabilized NOI, and total project cost — and closing runs weeks, not the months a bank or agency refinance takes. If your maturity is close, that speed is the point.
They stay yours. You own the building on a long-term leasehold, keep operating it, keep every dollar of cash flow after ground rent, and keep 100% of the appreciation. You sold the one part of the property that never paid you — the dirt.
Send the address, the stabilized NOI, your current debt and its maturity — we return an indicative land value in 48 hours, as principal or arranged capital. We focus on fee positions under $15 million, the deals below the institutional floors, and we’ve been quietly doing this for ten years.
Email us the deal