"Underneath All Is The Land" Ground Leases and Valuation Issues

This two-hour presentation provides continuing eucation for Michigan assessors and appraisers.  It begins with an overview of ground leases, why investors use it, advantages and disadvantages of the minced lease structure.  Real estate requirements, typical lease terms and capitalization rates are presented together with national data sources.

Examples of recent ground lease sales from various property types thoughout the state are presented.  A Michigna Tax Tribunal decision illustrate the challenges of valuing properties subject to a ground lease.

Two case studies are presented - a vacant fast-food restaurant and a proposed fast-food restaurant - to illustrate valuation techniques.