[RPPTL LandTen] Sale of Ground Lessor's Position, but not the fee - structure and tax implications

[David Weisman]

George:

That looks a bit like the deal where a company buys the cell tower leases from the landowner. I see a lot of inquiries on those, but the math is bad unless the owner is desperate for cash.

No reason one can't sell a leasehold.

David  Weisman
Board Certified Real Estate Lawyer
Greenspoon Marder, P.A.
Trade Center South, Suite 700
100 West Cypress Creek Road
Ft. Lauderdale, FL 33309
Phone 954-491-1120
Toll Free 888-491-1120
Direct Phone 954-343-6941
Direct Fax 954-343-6942

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From: landten-bounces at lists.flabarrpptl.org [mailto:landten-bounces at lists.flabarrpptl.org] On Behalf Of George Pincus
Sent: Tuesday, June 14, 2011 10:17 AM
To: 'landten at lists.flabarrpptl.org'
Subject: [RPPTL LandTen] Sale of Ground Lessor's Position, but not the fee - structure and tax implications

Has anyone done this deal:


*         Long term ground lease for a commercial property between Ground Lessor and Ground Lessee

*         A purchaser comes along and want to buy the Ground Lessor's position under the Ground Lease, but not the fee.

*         Essentially, the purchaser wants to buy the cash flow under the Ground Lease for the term of the Ground Lease for a present value (let the business people figure that calculation out) and, at the end of the term, the original Ground Lessor still has the reversionary interest and ends up owning the property and the leasehold improvements (large commercial building), free and clear of the ground lease and any subleases that the Ground Lessee entered into during the term of the Ground Lease.

I would be interested in talking with you about structure and tax implications, if any (for some reason I think there are as this looks a lot like some tax shelter structures I saw the aftermath of in the 80's and 90's).

If you have any relevant experience, please shoot me an e-mail or give me a call to discuss.


Thanks very much.

George A. Pincus, Esq.
Stearns Weaver Miller Weissler
  Alhadeff & Sitterson, P.A.
New River Center, Suite 2100
200 East Las Olas Boulevard
Ft. Lauderdale, FL 33301
Telephone: 954-766-9705
Facsimile:    954-766-9719
E-mail: gpincus at stearnsweaver.com<mailto:gpincus at swmwas.com>
www.stearnsweaver.com<http://www.stearnsweaver.com/>



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