The same math we run on real deals, live: ground rent at 25–33% of stabilized NOI, capitalized at a long-term land yield. Enter the NOI, pick the asset type, and see the indicative land value, the rent, and the coverage — then send the address for the real number.
The same math we run on real deals: ground rent at 25–33% of stabilized NOI, capitalized at a long-term land yield (housing at the tighter end). Illustrative and non-binding — the real number needs the address.
Off the income, not the dirt: ground rent is sized at 25-33% of stabilized NOI (leaving 3-4x coverage), then capitalized at a long-term land yield. On $1M of NOI that is roughly $3.7-5.3M of land value — typically 30-40% of the property's total value.
Because the real inputs — income durability, market, asset type, the deal's total value — move the rent percentage and the cap rate within their bands. The range is honest structural math; the single number requires the address and underwriting.
No — it is illustrative structural math, non-binding. The real indication comes from sending the property: address, stabilized NOI, and the debt picture.
Durable income, housing assets, and strong markets push toward the tighter cap and higher value; volatile income and thin coverage push the other way. The property's total value caps the practical answer — land above roughly 40% of total value gets hard to finance above it.
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 address, the stabilized NOI, and the debt picture — the underwritten indication comes back fast, non-binding, as principal or arranged capital.