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Form 5-1: Selected Amendments to Standard Long-Form Purchase Offer to Create a Letter of Intent to Enter into Site Ground Lease; Extensive Exhibit: “Summary of Ground Lease Terms” 


Use with Form 4-1; Replaces key paragraphs in Form 4-1 to make it a Site Ground Lease Proposal


(8 pages)


Form addresses:

  • Key Paragraphs to be revised.

  • Title.

  • Summary of Ground Lease Terms (defines Construction Term, Completion Term and Remainder Term) and rent payable during such periods.

  • Possible upward or downward adjustment of minimum annual rent.

  • "Bonus Rent": ground lessor's participation in gross rent stream above a floor (preferred) OR ground lessor's participation in net cash flow (much less frequently used).

  • Purchase option rights (alternatives).

  • Right of First Refusal.

  • Real estate taxes and insurance.

  • Leasehold mortgage.

  • Assignment rights.

  • Non-recourse provision.

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