Real Estate
May 28, 2003
Act Now; Don't Wait
BY MICHAEL E. DI GERONIMO When a ground lessee does not need financing to construct its initial improvements on a leased premises, it often deems of little importance or overlooks entirely the provisions needed to make a ground lease financeable.
When a ground lessee does not need financing to construct its initial improvements on a leased premises, it often deems of little importance or overlooks entirely the provisions needed to make a ground lease financeable.
This is unfortunate. At some point after the ground lease is signed, the lessee may want to obtain financing secured by its leasehold interest. Without having negotiated a financeable ground lease, a lessee may...