Structuring Financeable Ground Leases and Leasehold Mortgages

Balancing Competing Interests Among Owners, Lessees and Lenders

Recording of a 90-minute CLE webinar with Q&A


Conducted on Thursday, October 12, 2017

Recorded event now available

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Program Materials

This CLE webinar will provide counsel with an overview of the process of drafting and negotiating a financeable ground lease and address key provisions that balance the interests of the owner, lessee and lender. The panel will also discuss the leasehold mortgage and foreclosure issues presented by leasehold financing.

Description

A ground lease can be an attractive method to develop commercial property. However, the tenant/developer’s ability to obtain financing is crucial to the success of a development using a ground lease.

The potential lender’s interests must be considered in the initial negotiation of a ground lease between the landlord and tenant. Counsel’s primary task is to balance all the competing interests with respect to each key provision, such as subordination, right to cure and consent.

A lender’s lien on a financeable ground lease is secured by a leasehold mortgage, which must be drafted to address the lender’s and borrower/tenant’s interests during the term of the lease and in the event of foreclosure.

Listen as our authoritative panel of real estate attorneys discusses how to balance the competing interests of the owner, lessee and lender to create a financeable ground lease.

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Outline

  1. Perspectives of owner, lessee and lender
  2. Is the ground lease financeable?
  3. Key provisions of a ground lease/differing interests
  4. Common solutions/the “middle ground”
  5. Ground leasehold mortgages/drafting and foreclosure
  6. Lessons from the recent economy and the role of ground leases in future development

Benefits

The panel will review these and other key issues:

  • What are the key provisions of a ground lease?
  • What solutions are available to resolve key areas of dispute that may be acceptable to all parties involved—the landlord, tenant and lender?
  • What are the common “deal breakers” for the respective parties in a ground lease?
  • What foreclosure issues are presented by the ground leasehold mortgage and how can the document be drafted for the benefit of the borrower or the lender?
  • How are tighter lending standards affecting the use of ground leases?

Faculty

Alin, David
David M. Alin

Member
Mintz Levin Cohn Ferris Glovsky and Popeo

Mr. Alin’s practice covers many disciplines within commercial real estate, including acquisitions and...  |  Read More

Friedberg, Stephen
Stephen E. Friedberg

Member
Mintz Levin Cohn Ferris Glovsky and Popeo

Mr. Friedberg is engaged in the general practice of commercial real estate law, both nationally and locally, including...  |  Read More

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Strafford will process CLE credit for one person on each recording. All formats include program handouts. To find out which recorded format will provide the best CLE option, select your state:

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