WebCredenza 2024 Understanding ground leases, part 1

Ground leases are sophisticated contracts combining the elements of buy/sell agreements, commercial leases, and sophisticated financing. A landowner enters a long-term lease with a developer who constructs a building or other improvements on the land. The developer generally finances the building, occupying it or leasing it out to other tenants, paying the landowner rent on the underlying ground over a long period of time. There are many benefits of ground leases for the landowner and the tenant. But they are very complex agreements involving sophisticated economic calculations and require very careful review. This program will provide you with a practical guide to how ground leases work, and negotiating and drafting them.

Day 1:

• Overview of important provisions of ground leases.
• Underlying economics of ground leases.
• Permitted use and change of use.
• Methodologies for setting and adjusting rent to reflect risk and value over time.

Day 2:

• Major financing issues, including subordination.
• Construction and development issues.
• Special condemnation and casualty considerations.

Opinions and positions stated by presenters of MoBarCLE programs are those of the presenters and not necessarily those of The Missouri Bar. This program is intended as information for lawyers in Missouri, in conjunction with other research they deem necessary, in the exercise of their independent judgment.