How Land Leases Unlock Cheaper Real Estate Deals

Lucas and Luna explore the growing appeal of ground leases, where investors buy buildings but not the land beneath them. They unpack a specific case: a $450 million Manhattan hotel built on leased land, explaining how this structure reduces upfront costs, creates tax advantages, and introduces unique risks like lease expiration and rent resets. The episode contrasts ground leases with traditional fee-simple ownership, looks at why pension funds are increasingly funding ground-lease projects, and considers whether this model could expand beyond commercial real estate into residential markets. Listeners learn one concrete mechanism and the key question every ground-lease investor must ask: what happens when the lease runs out? #GroundLeases #RealEstateInvesting #CommercialRealEstate #LandLeases #PropertyFinance #CRE #RealEstateStrategy #Leasehold #FeeSimple #PensionFunds #ManhattanRealEstate #HotelInvestment #TaxAdvantage #LeaseExpiration #ResidentialRealEstate #Business #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo