Are FMV rent resets deal killers?

One of the biggest “deal killers” during ground lease negotiations circles around the issue of whether or not to include a rent reset in the ground lease. In general, rent resets are used to protect the landlord (lessor) from inflation which in turn can increase future ground rent paid by the ground tenant (lessee). As a consequence, the lessee is reluctant to accept a rent reset whereby “killing the deal.” However, crafting language to protect both the landlord and tenant can help keep the deal

Why ground lease and why now?

The New York Real Estate Journal caught up with Robert Khodadadian, Skyline Properties’ founder, and CEO, for an overview on why the current market conditions have led to the recent resurgence of ground leasing in the city.

Kaufman inking ground lease

Sister act: Kaufman inking ground lease for NoMad office building The Real Deal Skyline Properties Robert Khodadadian Daniel Shirazi

St. Mark’s portfolio under contract

Four-building St. Mark’s Place multifamily portfolio under contract for $44M The Real Deal Robert Khodadadian Skyline Properties

Skyline triples its NYC footprint

with its move to the 31st floor in SL Green’s “Daily News Building” to accommodate more space for the firms growing investment sales team

Tenant inks 99-year ground lease

Tenant inks 99-year ground lease for Bargain World spot The Real Deal Skyline Properties Robert Khodadadian

Skyline Properties is a boutique investment sales advisory firm headquartered in Manhattan. Our primary focus is to seek out “quiet deals”. These deals are off-market transactions designed to provide the seller with complete discretion and the buyer with a valuable asset. Skyline controls and negotiates every stage of the deal, producing win-win transactions.

Skyline Properties handles many different property types, including ground leases, commercial buildings, apartment buildings, townhouses, mixed use investment building, mixed use user buildings, live plus income buildings, industrial properties and development/conversion sites. Our staff is experienced in representing properties of all values and are expert in meeting the needs of the most demanding clients.

CONTACT US

SKYLINE PROPERTIES

220 East 42nd Street, Suite 3102

New York, New York 10017

Phone: 212.537.9239

Fax: 212.257.7028

info@skylineprp.com

FEATURED TRANSACTIONS

Skyline Properties

6101 Springfield Blvd., Queens, NY 11364

82,000 Square Feet Prime Retail property Including a 100 car parking lot with national tenants; United States Postal Office, Walgreens, Chase Bank, UPS, Red Mango and Subway.

135 West 29th Street, New York, NY

The Kaufman Organization closed on a newly formed ground lease at The Haymarket Building in Manhattan’s NoMad, valued at $34.5 million, Commercial Observer has learned.

236 5th Avenue, New York, NY

99-Year Ground Lease NYC Real Estate - The Real Deal Skyline Properties

530 West 25th Street, New York, New York

The Feil Organization is buying an office building in Chelsea that is home to several art galleries for about $72 million, according to sources familiar with the deal. 530 West 25th Street between 10th and 11th avenues and spans 95,000 square feet across seven stories.

131-135 Prince Street, New York, NY 10012

Acadia Closes $50M Buy of Soho Retail Co-ops- The Commercial Observer Skyline Properties

165-167 Eldridge Street, New York, New York

FREO U.S. Management Acquires Mixed-Use Property On Lower East Side For $19.25M

PRESS

Kaufman Org closes on $35M ground lease deal

The Kaufman Organization continues to expand in Midtown South after closing on a $34.5 million ground lease at the Haymarket Building. The organization signed a 99-year ground lease with MFM Properties for the 12-story office building at 135 West 29th Street, the Commercial Observer reported.

Feil buys Chelsea office for $72MM

The Feil Organization is buying an office building in Chelsea that is home to several art galleries for about $72 million, according to sources familiar with the deal. The property is located at 530 West 25th Street between 10th and 11th avenues and spans 95,000 square feet across seven stories. The Feil Organization partnered on the purchase with Peter Armstrong of Rigby Asset Management.

Lee family pays $32M for retail in Oakland Gardens

Ui Kun Lee of the Lee family based in Manhattan through the entity Main 15-Lee Springfield LLC paid $32 million to Alfredo Li through the entity Mandarin Realty NY LLC for the retail strip mall (K1) at 61-01 Springfield Boulevard in Oakland Gardens, Queens.

Ground Lease Resurgence

Resurgence of the Ground Lease: Q&A With Skyline Properties CEO Robert Khodadadian - The Commercial Observer

Skyline Properties NYREJ Company of the Month

Skyline Properties – Brokering outside the box: Off-market deals, ground leases and customized canvassing

Wildflower, the company behind Robert De Niro’s Wildflower Studios in Queens..

industrial site in Hunts Point from a Long Island company. The sites were last purchased for about $2.3 million in 2003, according to property records. The lots total 55,000 square feet and allow for 110,000 square feet of buildable space.

Kaufman Organization Closes on $35M Haymarket Building Ground Lease

The Kaufman Organization closed on a newly formed ground lease at The Haymarket Building in Manhattan’s NoMad, valued at $34.5 million, Commercial Observer has learned.