Still not clear; so if I were to buy this property, I am owning the ground as fee simple and the tenant owns the improvement for the 100-year. Once the 100 year lease expires, the improvements (building) is returned to the landlord?
Re: 100-Year Absolute NNN Ground Leased - Posted by ray@lcorn
Posted by ray@lcorn on October 22, 2006 at 19:09:28:
Mike,
It means the term of the ground lease is 100 years. You have full ownership, but the lease expires at the end of 100 years.
You don’t own the improvements, however, until the end of the lease term, only the ground. That changes the after-tax income attributes in that there is no depreciation to shelter income.