Ground Lease REIT (“GLR”) is a dedicated vehicle formed in 2020 by Montgomery Street Partners (“MSP”) specializing in origination and acquisition of long-term, unsubordinated ground leases on development, value-add and stabilized properties. GLR’s ground lease structure offers real estate owners/operators/developers a creative capital solution to achieve incremental leverage, lower cost of capital and reduced/deferred project equity leading to enhanced Sponsor returns. GLR is focused on all asset types in the top 30 U.S. MSAs. GLR is sponsored and managed by MSP.
Investment Strategy
GLR’s ground lease investment strategy is to originate 99-year senior unsubordinated ground leases on developments, value-add projects and stabilized assets with the following characteristics:
$10-200M
(Gross value of ground lease)
TRANSACTION SIZE
25-40%
GROUND LEASE TO PROPERTY VALUE
99 Years
GROUND LEASE DURATION
3.5-6.5x
Representing 14-25% of pre-ground rent NOI
GROUND RENT COVERAGE RATIO
Top 50
MSAs
TARGET MARKETS
NNN
Absolute NNN with annual rent escalators and periodic CPI adjustments