Real Estate Capital
a better way
In the new reality of rising housing unaffordability, the single most powerful thing you can do, to protect and grow your development business, is utilize a fundamentally better and more efficient capital solution.
That’s why we’re disrupting a $8.7T market by providing developers with significantly better capital, improved return on equity and long-term residual project revenue.
it starts with the land
Our innovative capital solution starts by removing the cost of the land from your balance sheet. We will acquire and contribute the land to your project, all off balance sheet, significantly reducing your capital requirements, lowering transaction costs and reducing debt security risks.
By eliminating the cost of the land we deliver better capital and returns for developers.
We significantly reduce land costs and fees and provide access to more favorable institutional funding.
Less equity means less risk and the ability to repurpose and reallocate capital to stabilize each project.
We identified a major capital inefficiency in traditional capital structures and delivered an innovative solution addressing how residential real estate is owned.
The solution was to separate the land from the buildings and recognize that the land is a distinct and separate asset capable of separate ownership and subject to different economic characteristics.
Separation is necessary as land typically returns lower return on equity than the building. While building owners may target 15% ROE, land typically only generates 5% ROE, bringing down the net ROE on development projects.
This new approach unlocks higher cash-on-cash returns, higher IRR and higher multiples by eliminating the need for land equity.
Better Capital Better Returns
introducing the residential ground lease
Residential Ground Lease
Modernization of an Ages Old Idea
We modernized the centuries old ground lease model to tackle head-on the deepening housing affordability crisis.
In the simplest of terms we took the ground lease out of restrictive affordable housing programs, land lease communities and commercial real estate and adapted it to the mainstream single family and multifamily residential real estate market.
Our proprietary safe ground lease allows us to deliver better and more efficient capital to developers by eliminating the cost of the land. At the same time we’re able to protect leasehold lenders and homeowners by providing a safe, secure and certain leasehold interest in the land.
Our residential ground lease fundamentally disrupts the residential real estate market by delivering a better and more affordable way to build and own a home.
Long Term Annuity Income
Our modern residential ground lease solution provides developers with the missing piece of the revenue model – long-term annuity revenue without the burden of asset retention and management.
Not only do we move land cost and equity off the developer’s balance sheet, but we also share lifetime contractual ground rent revenue with our development partners.
This enhanced revenue model captures future land appreciation and offers annuity cash flow – two revenue elements lost in traditional development projects.
Safe, Secure and Certain
Our modern residential ground lease contributes land equity to the project and delivers a safe, secure and certain lease structure together with attractive long-term contractual cash flow.
We’re disrupting the traditional way of thinking about capital, return on investment and the creation of long-term revenue.