Land Use Lawyer Los Angeles, CA
Land Use Lawyer Los Angeles, CA
What is an absolute NNN ground lease?
As a land use lawyer Los Angeles, CA residents trust knows, investing in a NNN lease (also known as a triple net lease) property can provide a steady and reliable income. You may also know that there are various types of commercial NNN lease opportunities. But do you have a firm understanding of what an absolute NNN ground lease is and how it may be a beneficial investment for you?
How can Kassouni Law help me?
Kassouni Law can work with you to find an absolute NNN ground lease property for sale that matches your portfolio goals. For those interested in taking advantage of conservative, long-term return investments, an absolute NNN ground lease may be ideal. Below is information about them, but we encourage you to contact a Kassouni Law lawyer to learn more.
An absolute NNN ground lease is an agreement between a property’s tenant and the owner of that property. As part of the agreement, the tenant will lease the land with the intention of building a new structure. When the structure is in place, the tenant will own the building but not the land.
The tenant will be responsible for all of the costs and expenses related to the design, construction, and maintenance of the building on that land. However, the owner of the land is usually responsible for paying the land’s annual property taxes. An absolute NNN ground lease is typically long, lasting anywhere from 50 years to 99 years. Should the tenant ever default on the lease or if the lease term expires, the landowner takes ownership of the building as well as retaining ownership of the land. In this event, a land use lawyer will likely be beneficial.
How does an absolute NNN ground lease compare to an absolute NNN lease?
- An absolute NNN lease on a commercial building covers the building and not the land. The tenant is responsible for any expenses associated with the building, including taxes, repairs, maintenance, and insurance.
- An absolute NNN ground lease on a commercial property applies only to the land. The tenant pays a monthly rental rate for the use of the owner’s land. Once the tenant has built a structure on the land, they will be responsible for the expenses associated with the building, including taxes, repairs, maintenance, and insurance. A Los Angeles, CA land use lawyer can provide advice when entering a NNN ground lease agreement..
What are the benefits of investing in an absolute NNN ground lease?
An absolute NNN ground lease can provide benefits to the tenant as well as for the landowner. Here is a short list of the advantages for the NNN ground lease investor:
- Reliable monthly income stream. An absolute NNN ground lease offers the investor a reliable and fixed monthly income for as long as you own that property and have a tenant leasing it from you.
- Low-risk investment. Because the tenant assumes all of the financial costs and risks of building and maintaining a structure on land owned by the investor, the investor collects rent but does not pay for anything.
- Minimum or no management of the structure or costs, or the management of the tenant’s business.
What financial considerations should I be aware of for ground NNN leases?
Those who are looking to invest in a ground NNN lease must be mindful and always seek advice from a lawyer when questions arise. Ground leases are a form of NNN leases, and serve an imperative function for the development of real estate. Real estate owners who are looking to monetary on developable land but want to keep residual ownership interest, can enter a ground lease for the long-term.
In this way, the tenant will usually lease the land and construction and then sublease, itself operate, or essentially monetize the land for benefit. In exchange, the tenant can pay their landlord periodic rental payments or up front in full for the lease term.
How will a lawyer protect my best interests as a landlord or tenant?
Kassouni Law represents renters and owners of commercial real estate. With our knowledge, we can help you feel confident about leasing issues pertaining to office, industrial, retails, flex space, single-tenant NNN, farm land, and ground leases. Our lawyers offer hands-on legal representation, so that every step you take is going to be in your best interest.
If we take on your case, then this means we are aligned with your goals as our client. We can help draft, review, and negotiate leases for landlords, seeing to it that key elements are covered and that all parties understand their responsibilities and obligations under the lease.
We can address issues with tenant improvements, non-distrubance, subordination, and other such agreements. We can utilize various resolution strategies when it comes to co-tenancy, common area maintenance (CAM), NNN, reciprocal easements, and more. As our landlord or tenant, we realize that multi-tenant retail or office spaces have their own unique set of challenges. It is important to have a lawyer who is skilled in protecting their client’s rights, in addition to helping you get the maximum benefit out of a lease agreement.
We can guide our clients through corporate and personal guarantees, rent terms, ADA access laws, design modifications, industry-specific regulations, and any other topic that you have questions or concerns about for the commercial space. If you are a prospective tenant or current landlord then please contact Kassouni Law as soon as possible, so you can be aware of all your options (including the ones you may not have considered before).
Call Kassouni Law Now
If you are debating whether to speak with a lawyer about a NNN lease or other real estate related topic, then we encourage you to get your questions answered by our legal team. To learn about the benefits of an absolute NNN ground lease, contact us at Kassouni Law to speak to a land use lawyer Los Angeles, California today.