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Real Estate

Ground Lease Acquisition (Buy the Dirt, Rent It Out 99 Years)

Buy land under existing commercial buildings on 50–99 year ground lease — bond-like income, low tenant risk.

Overview

Buy the fee-simple LAND under a commercial property where a tenant has built (or bought) the building on a 50–99 year ground lease. Landlord (you) collects escalating rent, no operating expenses, no tenant-improvement dollars, no capex. Building reverts to landowner at lease end. Yields 4–6% cap unlevered, 8–12% with 50% leverage. Safran, iStar (Safehold), and private syndicators aggregate these. Estate-friendly (predictable income, easy valuation).

Best fit
Bond-alternative income seekersEstate planning income vehiclesUltra-passive RE
Estimated impact
6–10% levered yield with near-zero operational risk

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