Jonathan A. Adelsberg, Partner

The COVID-19 Pandemic has clouded the future for many not-for-profits, including many religious institutions, who are facing significant declines in donations and operating revenues resulting in financial resources being stretched to their limits. 

Given these challenges, as not-for-profits pivot to ensuring their long-term viability, they will need to assess whether long-term opportunities exist to monetize their real estate both to improve their facilities and solidify their financial condition. Through a ground lease structure, not-for-profits that own property but that do not have the financial resources to redevelop their facilities can partner with a developer to undertake such a project. 

Herrick Real Estate partner, Patrick O’Sullivan, discusses the options for not-for-profits in a three-part series with the New York Real Estate Journal and in the October 1st podcast with the EisnerAmper Not-For-Profit Services Practices.

Podcast

Candice Meth, National Leader for EisnerAmper's Not-for-Profit Services Practice and Ron Dukes, Manager in EisnerAmper’s Private Business Services Group, interview Patrick O’Sullivan. During the conversation, they discuss several innovative ways that not-for-profit organizations can leverage their real estate holdings to generate new revenue streams while possibly upgrading their facilities and offsetting the costs to maintain them.

2020 New York Real Estate Journal Series

How Not-for-Profits and Religious Institutions Can Use Ground Leases to Redevelop Their Properties – Part 1:

• Assessing the Redevelopment Opportunity
• Structuring the Redevelopment Transaction

How Ground Leases Can Help Not-for-Profits Redevelop Their Properties – Part 2:

• Navigating Economic Terms
• Oversight and Remedies

How Ground Leases Can Help Not-for-Profits Redevelop Their Properties – Part 3:

• Delivery of a New Facility
• Long-term Coexistence

Read more about Herrick’s Not-For-Profit team here.

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For more information on this or other matters, please contact:

Patrick J. O’Sullivan, Jr. at +1 212 592 1503 or [email protected] 

© 2020 Herrick, Feinstein LLP. This alert is provided by Herrick, Feinstein LLP to keep its clients and other interested parties informed of current legal developments that may affect or otherwise be of interest to them. The information is not intended as legal advice or legal opinion and should not be construed as such.