The Definitive Guide to
NYC Ground Leases
From the brokers who've closed $120M+ in ground lease transactions, including the landmark $65M 236 Fifth Avenue deal.
Ground leases provide a great solution for multigenerational owners seeking hassle-free income streams for generations while retaining long-term ownership of their land.
Visit groundlease.nycOur Ground Lease Track Record
$120M+
Total Volume
3
Transactions
$65M
Largest Deal
$800+
Per SF Achieved
Why Ground Lease?
Tax Efficiency
Avoid capital gains tax while generating income
Generational Wealth
Maintain ownership for 99 years
Hassle-Free Income
Lessee handles all operations
Asset Appreciation
Property reverts with all improvements
What is a Ground Lease?
A ground lease, also known as a land lease, is a long-term lease arrangement where a property owner (ground lessor) leases their land to a tenant (ground lessee) for an extended period, typically 49 to 99 years. The lessee gains the right to use, develop, and improve the land while paying periodic ground rent to the lessor.
Unlike traditional property sales, ground leases allow landowners to retain ownership while generating substantial, predictable income. At the end of the lease term, the land and all improvements typically revert to the original owner—making ground leases an excellent vehicle for multigenerational wealth preservation.
99
Years (Typical Term)
4-8%
Typical Rent (% of Value)
100%
Ownership Retained
The 99-Year Ground Lease
Playbook
The most valuable outcomes come from structuring the clauses that drive financing, resets, and long-term reversion.
Rent Resets
Model CPI increases, periodic re-appraisals, and how resets affect total rent and valuation.
Subordination & Financing
Understand lender requirements, remaining term, and how lease terms impact capital availability.
Reversion Value
At expiration, the land and improvements revert—one of the key wealth-preservation drivers.
Negotiation Strategy
Escalations, options, and protections should be tailored to lessor and lessee objectives.
Ground Lease Calculator
Model your ground lease scenarios with our interactive calculator. Adjust inputs to see how different terms affect valuations.
Calculator Inputs
Valuation Results
PV of Leasehold
PV of Fee Simple
$30.0M
PV Ground Rent Stream
$29.7M
Total Rent Over Term
$631.5M
Value Distribution
Projected Rent Schedule
| Year | Annual Rent | PV |
|---|---|---|
| 1 | $1.5M | $1.4M |
| 2 | $1.5M | $1.3M |
| 3 | $1.6M | $1.3M |
| 4 | $1.6M | $1.2M |
| 5 | $1.7M | $1.2M |
| 6 | $1.7M | $1.1M |
Disclaimer: This calculator provides estimates for educational purposes only. Actual valuations depend on numerous factors including specific lease terms, market conditions, property characteristics, and legal considerations. Consult with qualified professionals for specific transaction advice.
Want a detailed analysis of your specific property?
Request Professional ValuationWho Benefits from Ground Leases?
For Property Owners (Lessors)
- Retain long-term ownership of your land
- Generate predictable income for 99 years
- Avoid capital gains taxes on property sale
- Create multigenerational wealth transfer
- Property reverts with all improvements
- No management or operational responsibilities
- Hedge against inflation with escalation clauses
For Ground Tenants (Lessees)
- Lower capital requirement than fee simple purchase
- Access trophy locations without buying land
- Ground rent payments are tax deductible
- Flexibility to develop and improve property
- Long-term operational control (99 years)
- Known, predictable land costs
- Focus capital on improvements, not land
Featured Ground Lease Transactions
Landmark ground lease with The Kaufman Organization in NoMad. Daniel Shirazi's signature deal. Over $800 per SF.
Haymarket Building ground lease. 12-story, 82,000 SF office building. Kaufman plans renovation and repositioning.
Harlem ground lease transaction. Strategic location on 125th Street corridor.
99-Year Ground Lease Case Studies
Two landmark examples that illustrate how structure, tenants, and rent reset mechanics shape outcomes.
236 Fifth Avenue
NoMad • 99-year ground lease
- • Institutional ground tenant
- • Long-term, predictable income stream for the lessor
- • Leasehold structure reduces upfront land capital for the lessee
- • Reversion value preserved at lease end
135 West 29th Street (Haymarket)
Midtown South • 99-year ground lease
- • Demonstrates creative structuring required in modern ground leases
- • Highlights rent reset / escalation negotiation sensitivity
- • Renovation and repositioning plans supported through leasehold control
- • Preserves land ownership while monetizing improvements
Ground Lease FAQ
Meet Our Ground Lease Specialist
Daniel Shirazi, Esq. closed a $65M ground lease in his first year at Skyline. His legal background and deep expertise in ground lease structuring makes him one of the most knowledgeable brokers in this niche specialty.
"Ground leases provide a great solution for multigenerational owners seeking hassle-free income streams for generations."
— Daniel Shirazi, Esq.
Published Works in NYREJ
Considering a Ground Lease?
Our team can evaluate your property and help you understand whether a ground lease structure makes sense for your goals. Every consultation is confidential.