How do you value a ground lease ? How do you negotiate an increase to the ground lease?

In General Area - Asked by Will R. - May 3, 2009
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Steve G.
Owner/Investor
Highlands Ranch, CO

We have done a number of Ground Lease projects and sold several over the years. All ours are 99 years in Length so we used a simple CAP rate valuation. I would expect all Ground Leases to be valued the same way regardless of term. Increases vary by property and client type - we have done 3 year adjustements based upon CPI but again we have long term leases and they are all NNN. Hope this Helps. You can check our concept out at www.PersonalWarehouse.com
Steve

May 5, 2009
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