Ground Lease Acquisitions WE PROVIDE FLEXIBLE AND COMPETITIVE TERMS TO FIT YOUR NEEDS. Typical Structure Typical Structure: $5-$150 Million 99-year term, buy-back option available Annual escalation with periodic CPI resets NNN structure NOI Coverage of 3.0x and up Up to 40% of the capital stack Cap rate dependent on deal strength Leasehold Owner Benefits Less Equity Required – Optimized Capital Stack Earn Better Returns – Higher IRR’s and Cash-on-Cash Yields Tax Advantages – Retain 100% Depreciation Readily Financeable – Lender Approved Lease Form Low-cost capital with no balloon risk for 99-years Ground Lease Transactions – Acquisition & Recapitalization Property Types – All major types considered Geography – Top 50 MSA’s in U.S. Transaction Size – $5 Million to $100 Million Earn Higher Returns on Your Capital. We are actively seeking to structure new ground leases and acquire existing ones, and we are able to deliver on all property types. We can provide a highly competitive portion of your capital stack. BH PROPERTIES For Submission of All Opportunities John Crump Senior Managing Director, Finance Download vCard Representative Transactions A ground lease can help fund a significant portion of a sponsor’s acquisition or recapitalization, and provides low-cost permanent capital with no immediate balloon risk. We can structure it based on your needs. APARTMENT - CASE STUDY BH bought the leased fee and simultaneously created a 99-year ground lease for the acquisition of a new 298-unit luxury apartment. The leasehold buyer brought in BH to provide just over 40% of the purchase price along with a leasehold lender providing another 75% of the remaining purchase price, allowing for much less equity than traditional financing to close. BH’s ground lease was approved by Fannie Mae as part of the leasehold 10-year fixed rate loan. Millennium Apartments Millennium Apartments, Fort Myers, Florida This 298-unit apartment in Fort Myers Florida is a retreat where tenants can flourish and enjoy life. HOTEL - CASE STUDY BH acquired the leased fee interest in three parcels in Manhattan secured by ground leases with 96 years remaining and improved with 3 select service hotels. The seller was a publicly traded REIT and the transaction also required BH to assume several hundred million in existing financing. 8 Stone Street 8 Stone Street, New York A 43-story DoubleTree Hotel located in the Financial District offering magnificent views of Manhattan, Brooklyn, and Ellis Island. 311 West 39th Street 311 West 39th Street, New York A 40-story Element Times Square Hotel (“Element”) opened in 2010 and is conveniently located in New York City’s leading submarket, Times Square. 370 Canal Street 370 Canal Street, New York The modern 21-story Sheraton TriBeCa Hotel and is conveniently located at the intersection of SoHo and TriBeCa. Get in Touch with Us Today CONTACT US 310.820.8888 Los Angeles Headquarters 11111 Santa Monica Blvd. Suite 600, Los Angeles, CA 90025 310.820.8888 Dallas Office 1410 E Renner Road, Suite 260 Richardson, TX 75082 972.233.8203 Phoenix Office 7600 N. 16th St., Ste. 155 Phoenix, AZ 85020 602.899.5593 Copyright 2021. All Rights Reserved Certified W3C Accessible Privacy Policy Terms Of Use Sitemap × BHProperties.Com meets the standards of ADA compliance for accessible design. Great care has been taken to ensure that this site is accessible to all. The following features have been identified and ensured to be accessible: slideshow, form, map, accordion, card, modal, infinite scroll and file downloads. This site was in compliance in accordance with the Web Content Accessibility Guidelines (WCAG) Version 2.1 as of March 17, 2021. View detailed audit results. Download Our Accessibility Evaluation Report