Lawline: Ground Lease Negotiations in Public-Private Developments
Patrick J. O'Sullivan, Jr. presented a CLE with Lawline focused on ground leases in public-private real estate developments. Many public-private projects are structured through the use of a ground lease, and given the competing objectives of the parties and the long-term nature of the relationship, ground lease negotiations are typically complex. While negotiations may be lengthy, the parties can find great value through careful consideration of key ground lease provisions. For the public sector, a ground lease provides a mechanism to structure its involvement in both the project's development and operational phases, the means to ensure that particular public interest objectives are achieved, and the opportunity to realize the longer-term economic value in the property once improved. For the private sector, a ground lease allows for the opportunity to develop a project without carrying a significant upfront acquisition cost for the land, a means to access tax benefits in connection with the project, and a structure that can adjust over time as the project enters different stages of its development and operations.
This course reviewed the use of ground leases in the public-private development context and highlights how the negotiation of its key provisions can facilitate the successful development of such projects.Click here to learn more and to view the program on demand from Lawline.