For debtor's counsel, trustees, CROs, and creditors' advisors: the ground lease is often the most durable contract in the estate — and the land under a debtor's buildings is often the cleanest value to monetize. How the mechanics actually run.
Unsubordinated means no fee mortgage exists to foreclose through the property. Leasehold-lender protections — independent notice and cure, new-lease rights on termination — mean the capital stack above the land can survive its borrower. And rejection of a ground lease by a debtor-landlord runs into a tenant's statutory right to remain in possession. The structure was built for stress; bankruptcy is the stress test it passes.
Yes — a 363 sale of the fee, subject to the lease, with the lease assumed or ratified in the order, is the clean path. The buyer steps into the rent stream; the tenant's rights ride through.
Recorded rent, real coverage from property income, an arm's-length process, and a performing operator on the leasehold. Insider history is cured by the court process itself.
Yes, as a principal — including positions too small for institutional buyers, and including situations where the honest entry is the fee mortgage note rather than the equity.
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.
Send the lease and the rent. We respond with a real indication quickly, and we underwrite from public records so your process stays clean.