If you are buying a building subject to a ground hold, Ari Hirt (Managing Director), will walk you through several factors about Ground Leases.
Ground leases can be complicated. So, if you’re contemplating acquiring a building that is subject to a leasehold you should consider the following factors.
- How much term is left on the ground lease?
- Are there rent bumps in the ground lease?
- Are there fair market value adjustments?
- What percentage is the cash flow of rental income and N.O.I. (Net Operating Income)?
- Who is the landlord and how cooperative is he going to be with your lender in signing in a stop hold.
ABOUT ARI HIRT
Ari is a Managing Director in the Debt & Equity Finance Group at Mission Capital Advisors, where he oversees the firm’s placement and execution efforts for commercial real estate developers, owners and investors nationwide. Ari also leads Mission’s efforts in maintaining relationships with hundreds of capital sources and is responsible for business development including sourcing and evaluating new financing opportunities.
Earlier in his career, Ari held senior positions as a lender at Nomura Asset Capital Corporation and Key Bank. Ari was a fellow in the Russell Berrie Foundation’s Leadership Development Program and is a founder of Unite4Unity. Ari is actively involved in AIPAC having served as a Vice Chair of its New Leadership Network and a member of its National Council. Currently an Adjunct Professor at Yeshiva University’s Sy Syms School of Business, Ari has also lectured on real estate matters at Columbia University and at the Real Estate Board of New York. Ari also founded and co-chairs the Yeshiva University Real Estate Executive Circle (YUREE), an industry networking group that raises funds for the University. Ari is a graduate of YUHS (1984), Yeshiva University (BA in Economics 1988) and NYU’s Stern School of Business (MBA in Finance 1992).