Traditional Office
Medical Office
Life Science
Global presence
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.
The combination of a ground lease and leasehold financing maximizes proceeds and reduces equity by as much as 50%.
Multiple options throughout the lease term to unwind the structure with a purchase option.
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.
Fixed increases and capped inflation exposure make Haven ground leases easy to underwrite (no FMV resets) and don’t negatively impact leasehold value.
Ground leases result in a lower blended cost of capital, increasing sponsors’ yields and IRRs.
Long term ground lease eliminates interest rate and refinancing risk.
Banks, CMBS, debt funds and agencies are all comfortable lending behind a Haven ground lease.
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.
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)
Fee / Leasehold Bifurcation (1)
Fee / Leasehold Bifurcation (1)
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.
Traditional Office
Medical Office
Life Science
Multifamily
Student Housing
Senior Housing
SFR / BTR
LIHTC
Development
Logistics
Cold Storage
Data Centers
Hotel
Resorts
Casino
Shopping Centers
Strip Centers
Malls
This website is subject to change and all users should conduct their own investigations and analyses of Haven Capital. There can be no assurance that the investment objectives or potential benefits associated with a Haven ground lease will be achieved or accomplished. The illustrations provided above are for informational purposes-only and do not represent an actual transaction of Haven Capital. The illustrations are based on a number of management’s assumptions, including with respect to increases in value and reduction of equity, which may materially differ from actual events or conditions. AUM amounts for Ares Management Corporation are as of June 30, 2024 and include funds managed by Ivy Hill Asset Management, L.P., a wholly owned portfolio company of Ares Capital Corporation and a registered investment advisor. Information provided is pro forma for Ares Management’s acquisition of SSG Capital Holdings Limited, which closed on July 1, 2020. Past performance is not indicative of future results. Projections or forward-looking statements are not reliable indicators of future events and no guarantee or assurance is given that such activities will occur as expected or at all.
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