100-Year Absolute NNN Ground Leased - Posted by Mike W.

Posted by Mike W on October 26, 2006 at 02:18:07:

Hi Ray and thanks for responding.

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?

Thank you in advance.

100-Year Absolute NNN Ground Leased - Posted by Mike W.

Posted by Mike W. on October 22, 2006 at 13:58:34:

“100-Year Absolute NNN ground-leased investment (fee simple ownership)”

The brochure states that it is a fee simple ownership but what exactly does the 100-Year Absolute NNN Ground Leased mean?

Do I have the full fee simple ownership or only for 100-year?

Thank you very much for your time.

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.

ray