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Real Estate

Ground Lease Sandwich

Buy building on ground lease cheap, reposition lease, sell at premium.

Overview

Properties on ground leases (you own building, someone else owns land) often trade at deep discounts because financing is hard and remaining lease term is short. Buy the building cheap, negotiate lease extension with ground owner, refi with new lender at extended term, sell for premium. Value-add play on structural inefficiency.

Best fit
Commercial real estate operatorsValue-add investorsSophisticated urban buyers
Estimated impact
30–60% value uplift on repositioned ground-lease property

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