Other People's Money
Back to library
Real Estate

Ground Lease Arbitrage

Own the building without owning the land. 30%+ IRRs.

Overview

Long-term (50–99 yr) lease of land; you build/own improvements. Massive capital efficiency — no land cost. At lease end, improvements revert (or you renew). Institutional class; Safehold pioneered public model.

Best fit
Ground-up developersInstitutional operatorsLong-hold investors
Estimated impact
40–60% capital reduction per project

Click Generate advisory deep dive for mechanics, IRC citations, a step-by-step execution plan, a worked numeric example on your profile, costs, risks, and this-week actions.

More real estate strategies

See all Real Estate strategies
OPM