Ground leases have been a cornerstone of Manhattan real estate for over a century. For multigenerational owners, they offer benefits that outright sales simply cannot match.
Tax Efficiency
By retaining fee simple ownership while creating a ground lease, landowners can generate income without triggering capital gains. The land remains in the family, appreciating over time.
Income Stability
- Predictable cash flows over decades
- Built-in escalations protect against inflation
- No management responsibilities or capital calls
- Senior position in the capital stack
Estate Planning Advantages
Ground leases can simplify succession planning while maintaining family ownership of irreplaceable land assets. The structure provides flexibility for future generations.