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Course Details

Course Information
  • smart_display Format

    On-Demand

  • signal_cellular_alt Difficulty Level

    Intermediate

  • work Practice Area

    Real Property - Finance

Date & Time
  • event Date

    Thursday, August 3, 2023

  • schedule Time

    1:00 p.m. ET./10:00 a.m. PT

  • timer Program Length

    90 minutes

Credit Information

  • This 90-minute webinar is eligible in most states for 1.5 CLE credits.

$347.00
CLE
ALL

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.

Faculty

Patrick J. O’Sullivan
Partner
Herrick, Feinstein LLP

Mr. O’Sullivan represents developers, investors, governmental entities and not-for-profit institutions on a range of real estate matters with a focus on development issues, particularly those that arise in public-private transactions. He has represented clients on a range of complex transactions for properties across the U.S., including acquisitions and dispositions, large-scale developments, joint ventures, construction projects, and public and private financings.

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Dena Cohen
Partner
Herrick, Feinstein LLP

Ms. Cohen focuses her practice on commercial leasing transactions, ground leases, and real estate sales and acquisitions. She has represented a wide range of prominent landlords and tenants in retail and office leases across the U.S. Her tenant clients have included large financial institutions, well-known restaurants, art galleries, international retailers, television networks and fashion brands in prime Manhattan locations. Ms. Cohen also represents parties in the acquisition and sale of real estate development rights, as well as outdoor advertising, billboard and signage leasing.

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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 a development's success using a ground lease.

Counsel must consider the potential lender's interests in the 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.

Outline

  1. Perspectives of the owner, lessee, and lender
  2. Is the ground lease financeable?
  3. What makes a ground lease “financeable”?
  4. What are the key provisions of a leasehold mortgage?
  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 high priority issues:

  • What are the essential provisions of a ground lease?
  • What are the principal benefits to the landlord and the tenant of ground leasing a property?
  • What makes a ground lease “financeable”?
  • What are the key provisions of a leasehold mortgage?