Haven Capital's Distinctive Approach
Strategic Flexibility
Multiple repurchase options throughout the lease term. Year 20 and Year 30 at a fixed cap rate; Year 99 for $1.
Predictable Rent Increases
Fixed 2% annual rent increases with periodic CPI adjustments (capped at a 3.5% CAGR). No FMV resets.
Accounting Advantages
Capital Efficiency
Reduced equity requirements by up to 55% and enhanced Sponsor returns.
What is a Ground Lease
Innovative Real Estate Financing
A Haven ground lease allows for a sale of the underlying land to be used as a form of financing or liquidity. Haven has rewritten the rules of what was once a cumbersome tool of wealth preservation to now act as a flexible, ultra-efficient form of real estate financing.
Operational Framework
The implementation of a Haven Capital ground lease follows a straightforward process:
1.
Haven acquires the fee interest from property owner as part of an acquisition, recapitalization or development.
2.
Property owner enters into a ground lease agreement with Haven Capital.
3.
Property owner retains ownership of improvements and operational control.
4.
Property continues normal operations with an optimized capital structure, including a leasehold loan from Freddie Mac or one of Haven’s institutional lending partnerships.
Haven Prepayable Ground Lease
Capacity
Target Deal Size (Pre-Split)
Target Asset Classes
Target Property Description
Pricing
LTV Range
Annual Rent Increases
CPI Lookbacks
Repurchase Options
Key Terms
Capacity
$2.0B
Target Deal Size (Pre-Split)
$50M+
Target Asset Class
Affordable and Market Rate Multifamily (Existing & Development), Student Housing, Office, Hotel, Grocery Anchored Retail and Logistics
Target Property Description
Class A and B+ assets in primary and secondary markets
Pricing
30-Year Treasury + Spread (Guidance Below)
LTV Range
30-50%
Annual Rent Increases
2.00%
CPI Lookbacks
Every 10 Years (Capped at a 3.50% CAGR)
Repurchase Options
Year 20 and Year 30 at a fixed cap rate; $1 buyback in Year 99
| Asset Class | Multifamily | Multifamily Dev. | Student Housing | Core Office and Hotel | Credit Leased Office | Office / Hotel / Industrial Dev. | Affordable / LIHTC Dev. | Operating Assets |
|---|---|---|---|---|---|---|---|---|
| Base Spread to 30-Year Treasury | 0bps | Post-Stab: 15bps Pre-Stab: 55bps | 15bps | 50bps | 50bps | 100-150bps | Post-Stab: 20bps Pre-Stab: 60bps | 100-125bps |
| Implied Base Initial Yield | 5.40% | Post-Stab: 5.55% Pre-Stab: 5.95% | 5.55% | 5.90% | 5.90% | 6.40%-6.90% | Post-Stab: 5.60% Pre-Stab: 6.00% | 6.40%-6.65% |
Pricing based on current 30-Year Treasury.