Structuring Financeable Ground Leases and Leasehold Mortgages

Balancing Competing Interests Among Owners, Lessees, and Lenders

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

Conducted on Tuesday, January 19, 2021

Recorded event now available

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Course Materials

This CLE course 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 issues presented by leasehold financing.


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

Counsel must consider the potential lender's interests in the initial negotiation of a ground lease between the landlord and tenant. Counsel's primary task is to balance all the competing interests concerning 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 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.



  1. Perspectives of the 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


The panel will review these and other high priority issues:

  • What are essential provisions of a ground lease?
  • What solutions are available to resolve critical areas of dispute that may be acceptable to all parties involved--the landlord, tenant, and lender?
  • What are the typical "deal breakers" for the respective parties in a ground lease?
  • How are tighter lending standards and rating agency requirements impacting the use of ground leases?


Cohen, Dena
Dena Cohen

Herrick Feinstein

Ms. Cohen focuses her practice on commercial leasing transactions, ground leases, and real estate sales and...  |  Read More

O’Sullivan, Patrick
Patrick J. O’Sullivan, Jr.

Herrick Feinstein

Mr. O’Sullivan represents developers, investors, governmental entities and not-for-profit institutions on a range...  |  Read More

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