Glossary

Ground Lease Buyout

A ground lease buyout occurs when a landowner monetizes some or all of the future income from a ground lease in exchange for a lump-sum payment. Depending on the structure of the transaction, this may involve the sale of the underlying land (subject to the existing lease) or the sale of the future lease payment stream. This allows the property owner to access capital today rather than waiting years or decades for lease payments to be received over time. The specific structure, and the rights transferred, will vary by transaction and are governed by the applicable purchase and sale agreement.