Mastering the Benefits of Ground Leases for Generational Wealth

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.