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Our Real Estate lawyers are highly skilled in the creation, negotiation and operation of ground leases for Manhattan office buildings, hotels and development sites.

We are among New York’s leading attorneys when it comes to negotiating ground lease transactions and their complex provisions involving, among other items, subordination, non-disturbance provisions, maintenance obligations and ground rent reset provisions. We have been involved in numerous major ground rent re-valuation arbitrations. We are able to leverage our extensive experience and that of our expert consultants to negotiate effective rent re-valuation clauses and obtain cost-efficient settlement agreements of existing provisions, thereby avoiding protracted and costly arbitrations.

We have drafted or enforced ground leases for numerous high-profile properties, including:

  • Lever House at 390 Park Avenue
  • One Penn Plaza
  • The Surrey Hotel
  • 111 Wall Street
  • 430 Park Avenue
  • 120 Broadway

Recently, we represented the fee owner in an innovative ground lease condominium to an affiliate of Cornell University permitting the non-profit ground lessee to obtain real property tax benefits.

  • In one of the biggest financing deals of 2014, Olshan represented the purchaser of the iconic Mobil Building at 150 East 42nd Street, including securing a $700 million loan from Morgan Stanley Mortgage Capital Holdings to complete their acquisition of the leasehold position. The deal included a 99-year ground lease extension with the land owner, purchasing the existing leasehold from Hiro Real Estate, and creating a sub-leasehold condominium to accommodate Mt. Sinai Medical Center. Several Olshan practice groups represented the buyers in the transaction: Tax & Planning, Real Estate and Corporate/Securities. News reports may be found at The Real Deal and GlobeSt.com.
  • Represented a joint venture of Kaufman Organization and Principal Life in connection with the execution of  99-year ground leases on four New York City office buildings from Extell Development in a deal valued at approximately $135 million. The properties are located at 119-125 West 24th Street; 13-15 West 27th Street; 19-21 West 24th Street; and 45-47 West 27th Street.
  • Represented the Korein Family in connection with a new ground lease with Vornado Realty Trust to take over the ground lessee position at the Swiss Center at 608 Fifth Avenue from RFR Holdings. The new lease will run through April 30, 2026. This transaction follows a successful ground rent re-set arbitration by the Koreins co-counseled by Sam Ross against RFR.
  • Represented the ground lessor of the Surrey Hotel on Manhattan's Upper East Side on the modification of its ground lease to update the ground lease to comply with modern financing techniques and to extend the term. The amendment covered issues regarding the renovation of the hotel.
  • Represented fee owner in negotiation of the ground lease of the Lever Building, 390 Park Avenue in New York City, with RFR Holding as the ground lessee.

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