Leaders in Providing Flexible, Low Cost Funding for Real Estate

Haven Capital Overview

Key Figures

Assets under management (AUM)
$ 0 BN
Number of employees
0 +
Years of experience
0 +

North America,
Europe, Asia Pacific

Global presence

About Haven Capital

Haven Capital, founded in 2021 by Ares Management and Regis Group, is the leading dedicated private ground lease investment platform focused exclusively on creating, prepayable, long-term (99 years with repurchase options), modern ground lease positions on high quality assets across the country. Haven has more than $2.0B in capacity for all asset classes across the top 30 MSAs with funding provided by the world’s largest real estate investors.

Ground Lease Benefits

Reduced Equity Requirements

The combination of a ground lease and leasehold financing maximizes proceeds and reduces equity by as much as 50%.

Enhanced Flexibility

Multiple options throughout the lease term to unwind the structure with a purchase option.

Enhanced Asset Value

A ground lease aims to increase overall asset value by separating the low risk / low return land from the higher risk / higher return building component.

Predictable Ground Rent Increases

Fixed increases and capped inflation exposure make Haven ground leases easy to underwrite (no FMV resets) and don’t negatively impact leasehold value.

Increased Returns

Ground leases result in a lower blended cost of capital, increasing sponsors’ yields and IRRs.

Long Term Solution

Long term ground lease eliminates interest rate and refinancing risk.

Lender Endorsed

Banks, CMBS, debt funds and agencies are all comfortable lending behind a Haven ground lease.

How it works

Separating the fee and leasehold interest can be a more efficient form of financing and helps unlock asset value and liquidity. The below provides an example of potential capital stacks with and without the application of a ground lease.

Fee Simple Asset with Traditional Financing (1)

CUM. LTV

$ CUM.

100.0%

$100.0m

63.7%

$63.7m

Blended Day 1
Cost of Debt:
5.20%

Fee Simple Asset with
Traditional Financing (1)

$36.3m
Equity
$63.7m
Senior Loan
5.20% Fixed Rate (2)

A Haven Ground Lease Enhances Returns

0 % Equity
0 bps Cash Yield
0 bps IRR (5)
0 x Multiple

Fee / Leasehold Bifurcation (1)

Fee / Leasehold Bifurcation (1)

$20.3m
Equity
$40.2m
Leasehold Loan
5.35% Fixed Rate (3)
$39.8m
Ground Lease
4.80% Inital Yield (4)

CUM. LTV

$ CUM.

100.0%

$100.0m

80.2%

$80.2m

40.0%

$40.0m

Blended Day 1
Cost of Debt:
5.03%

1. Analysis assumes a cap rate of 5.25% and a 5-year hold.

2. Mortgage is sized to the lesser of 80% LTV and 1.30x DSCR. Assumes 5-Yr Treasury of 3.50% + 170 bps.

3. Mortgage is sized to the lesser of 75% leasehold LTV and 1.30x DSCR. Assumes 5-Yr Treasury of 3.50% + 185 bps.

4. For illustrative purposes only. Pricing dependent on asset quality and location–shown as 30-Yr Treasury of 4.10% + 60 bps.

5. Analysis assumes NOI growth of 3.0% annually.

Target Asset Classes and Markets

Top 30 MSA's

Case Studies