Ground Lease Valuation
Ground leases are one of the fastest growing segments of the real estate world and, as such, demand for an accurate ground lease valuation is definitely on the rise. Property owners gain by generating steady income for a property and the tenant gains by requiring less capital and having better cash flow for their business. A true ground lease valuation creates a win-win scenario for both the fee owner and the tenant.
With a strong history in evaluating these types of arrangements, DiStefano is able to investigate and determine the true value of a ground lease agreement and advise both owners with pricing strategies and potential renters with an idea of the value of the property. With fees running the gamut for ground lease strategies, both parties will need to know the correct valuation before signing a contract.
In making a ground lease valuation, we at DiStefano take a comprehensive approach. In addition to performing an on-site analysis, we also use many other factors to create an informed report. A tenant’s credit quality, the strength of the business model, and the proposed improvements are only a sampling of the aspects we take into account when performing a ground lease valuation. We also look at similar situations and properties in the immediate area to determine a framework for local standards and apply these to our reports.